Cabletalk posts disappointing result

Telecommunications company Cabletalk Group has delivered a disappointing full year profit, down 52 per cent on the same period a year ago.

Cabletalk posted a net after tax profit of $1.1 million in the 12 months to March 31, compared with $2.3 million a year earlier.

The result was signalled in a profit warning in March, when the company said its second half result, from October to March, would likely fall short of growth expectations.

Chairman Ross Keenan said the second half was "disappointing", particularly given the major investment in expanding Cabletalk's technical capability during the period, on expectations of continued revenue growth.

"Not only were revenue projections not achieved but actual revenue declined by $3m compared to the first six months," Mr Keenan said.

Cabletalk clocked up earnings before interest, tax, depreciation and amortisation (ebitda) of just $421,000 in the second half, compared with first half earnings of $2.2m.

Total operating revenue for the full year fell 11 per cent to $36.4 million.

Mr Keenan said Cabletalk had seen a turnaround since balance date, with a return to revenue growth.

The company was now "well placed to maximise the value of its investment in a scarce skill market and across a wider business base than previously available," Mr Keenan said.

Shares in Cabletalk, which declared a fully imputed dividend of 2 cents per share, last traded yesterday at 45c against a year high of 81c and a low of 40c.

- NZPA