Higher costs cut Zintel's gain by 6pc

Telecommunications firm Zintel has reported a 6 per cent fall in full-year profit as higher operating costs overshadowed an increase in revenue.

The NZAX-listed company posted a net profit after tax of $3.2 million in the 12 months to March 31, compared with $3.4 million a year earlier.

Total operating revenue rose 15 per cent to $40.5 million. Zintel said overheads rose by $2.3 million as it recruited senior staff and ramped up its sales and marketing arm. IT and depreciation costs also increased.

Zintel's communications division saw revenue from toll and toll-free sales grow 10 per cent in New Zealand but decline 4 per cent in Australia.

Its Enterprise business, which distributes Ericsson products and provides support and maintenance, grew revenue locally by 17 per cent and net profit before tax by 3 per cent.

Enterprise Australia's losses were less than last year but still larger than acceptable.

"Overall, the result is satisfactory given the amount of investment applied to key areas that should deliver growth in the coming years," chief executive Peter Halkett said.

- NZPA