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A fibre-optic broadband project for Peter Jackson's Camperdown Studios and Weta Digital using the CityLink Division has increased projected profits in niche telco TeamTalk.
Profits for the CityLink network business were up by 20 per cent to $1.82 million for the half-year to December 30, and TeamTalk is expecting earnings of up to $4.5 million for the full year to June 2008.
That was compared with previous guidance for the period of $4 million and earnings for the year to June 30, 2007, of $3.25.
TeamTalk chief executive David Ware said the result validated the company's decision to move beyond being a simple mobile radio network operator into a provider of profitable niche telecommunications services.
Ware said that first half of the current financial year, the group invested around $3.5 million in various capital projects. CityLink accounted for around half of that money.
Group expenditure was on projects that have either contracted revenues directly associated with them or which deliver immediate, tangible cost savings, he said. Directors declared a fully-imputed dividend of 10c per share payable on April 18.
Ware said the company had successfully entered the all-important Auckland market and had expanded its range of services.
