Cabletalk rewarded for productivity lift

Telecommunications services provider Cabletalk Group has posted an improved profit on what it says is better productivity.

For the year to March 31, the Auckland company posted a profit of $2.25 million, up nearly 20 per cent from $1.88 million a year earlier.

As the company had warned, revenue fell to $41.15 million from $54.62 million the year before, the result of a contract with Telecom ending on June 30 last year.

The result follows a tax provision of $1.1 million compared with a tax benefit the previous year of $200,000.

Pre-tax profit was $3.39 million, up from $1.68 million the year before.

Cabletalk is paying a fully imputed dividend of 3c a share, bringing total annual earnings to 7.1c a share, compared with 5.9c the previous year.

Shareholder equity was $7.07 million, up from $4.81 million the previous year.

Chairman Ross Keenan described the result as excellent in terms of earnings, equity and improved business operations efficiency.

"Over the course of the year we have made a number of strategic investments in the equipment and training needed to lift our productivity.

"This has been reflected in the level of margins we have been able to achieve from core business activities."

He commended management for "delivering such strong results in this year of transition".

Keenan said the company planned to expand through acquiring businesses that offered synergy benefits.

Cabletalk's annual meeting will be held in Auckland on July 26.