VITA GROUP STRONG ON THE BACK OF TELSTRA STORES

Written on the 28 February 2014

VITA GROUP STRONG ON THE BACK OF TELSTRA STORES

 TELECOMMUNICATIONS company Vita Group (VTG) has reported a 66 per cent boost in interim dividends following a strong first half result attributed to continued growth of the group’s Telstra stores.

In the six months to December 31, 2013, VTG recorded an 18 per cent increase in earnings before interest, tax, depreciation and impairment (EBITDA) to $12.1 million and 56 per cent uplift in underlying net profit to $4.2 million.

The significant cash flow derived from Telstra stores was only let down by a $19.4 million non-cash impairment of the remaining goodwill in Next Byte, the group’s premium Apple reseller (APR).

When considering the impairment charge, the group recorded a statutory net loss of $15.2 million for the half.

VTG CEO Maxine Horne says the financial expectations for the Next Byte brand were revised down when the roll-out of the new-format stores was at a lesser scale than anticipated.

“The brand remains an important part of our business,” she said in a prepared statement. “However, we now envisage a smaller, more focused portfolio of new-format APR stores, particularly given that we will be redirecting investment towards higher-quality opportunities in the telecommunications business channel.

“In light of this changed outlook, it was deemed appropriate to write down the remaining goodwill in the Next Byte business.”

In the Telecommunications sector, revenue for the period was up 1 percent to $173.8m and underlying EBITDA grew 22% to $12.9m.

The divisional result was underpinned by a strong performance from the Telstra store portfolio offset by a weaker contribution from Fone Zone and One Zero.

Vita expects to add another 12 to 14 Telstra stores to its network in calendar 2014 as part of the arrangement to strengthen its alignment with Telstra, announced last December.

“This is another very pleasing result for the Group that demonstrates our ability to delivering earnings growth consistently over time. We are particularly encouraged by the returns being achieved in areas where we have made strategic investment, especially the Telstra stores, which are performing strongly and generating significant cash flows,” says Horne.


Latest News

2017 BRISBANE TOP COMPANIES REVEALED

WHILE Queensland is regarded as an economy in transition with the winding down of the mining boom, the 2017 top 50...

2017 BRISBANE TOP COMPANIES 1-10

FROM insurance and banking to travel, gambling, retail, property and pizza, these "heavyweights" have ha...

2017 BRISBANE TOP COMPANIES 11-20

RETAIL, property, an airline, cars, real estate, software services, energy, agriculture, veterinary services bathr...

2017 BRISBANE TOP COMPANIES 21-30

JEWELLERS Michael Hill International listed in 2016 with a half-billion dollar market capitalisation and a new CEO...

Related News

FURNITURE DISRUPTOR SET TO SHARE HIS ONE OF A KIND BUSINESS MODEL

IT'S no secret that Australians love homemaking. Their ceaseless quest to create the perfect place to call hom...

WEEDING OUT THE ASX'S BURGEONING CANNABIS TREND: 8 COMPANIES TO WATCH

A NICHE is budding on the ASX in the form of medical cannabis, an industry which has been on the country's rad...

FRESH CLASS ACTION TO REVEAL ANOTHER SIDE OF SLATER AND GORDON DOWNFALL

ACA LAWYERS has issued a formal letter of demand to Andrew Grech (pictured), managing director of Slater and Gordo...

STARSHIPS WERE MEANT TO DELIVER DOMINO'S PIZZA

NICKI Minaj may have been off the mark when she declared 'starships were meant to fly'. However, she m...

BOOK YOUR FUNCTION SPACE HERE

 

 

 

Contact us

Email News Update Sign Up Contact Details
Subscriptions

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter