VITA'S 'BYTE' INTO TELSTRA PAYS OFF

Written on the 24 August 2015

VITA'S 'BYTE' INTO TELSTRA PAYS OFF VITA Group (ASX: VTG) has shown the great payoff of aligning with Telstra, and focusing on a particular business segment, through its full year results today.

Vita's Telstra branded retail business underpinned its revenue and profit boost, for the board to be able to pay a fully-franked dividend of 7.98c per share, up 72 per cent from last year.

Underlying profit after tax grew 76 per cent from the same period last year to $18.1 million, from a revenue of $601.4 million, up 34 per cent from last year.

Revenue from the Telstra-strong telecommunications division of the business saw the biggest growth, increasing 44 per cent to $541.5 million.

The communications and electronics company's CEO, Maxine Horne, says Vita is increasingly focusing on the small-to-medium (SME) business segment to build scale.

"We are executing on our clearly-defined strategy and seeing earnings growth from the investments made in recent years," says Horne.

"We continue to focus on multiple horizons of growth [including] the optimisation of the retail business; building scale in the SME business segment through Telstra Business Centres, contact centres and outbound sales teams; and laying foundations for growth in Vita Enterprise Solutions servicing larger customers."

Vita added five Telstra stores and four Telstra Business Centres in the financial year, taking its network to 100 Telstra stores and 16 Telstra Business Centres.

As Apple continues to increase its market share, Vita has seen a depreciation in its Next Byte stores. Part of the company's computing division, the revenue for these stores declined 20 per cent over the year to $59.9 million.

This shows a changing of the hands, as integrated services seem to take a lead on products in the communications sector, something which Vita recognised last year when its full year loss was attributable to Next Byte for performance. 

Horne says Vita's alignment with industry leader Telstra sets the company up well for future growth.



Latest News

BELLAMY'S FINDS EXPORTING BABY FORMULA INTO CHINA IS NO CHILD'S PLAY

BELLAMY'S (ASX: BAL) shares have suffered a 40 per cent drop in value today after the company hit a regulatory...

BRISBANE WATCH BRAND ADINA AIMS FOR ICONIC

ADINA watches is at a turning point in its history, 45 years after being founded by Robert 'Bob' Menzies i...

WHY YOU SHOULD CARE FOR YOUR BODY AS MUCH AS YOUR BUSINESS

ENTREPRENEURSHIP is a busy business. It can be all-consuming, but it is important not to neglect your health Y...

BULLETS BACK IN THE BUSINESS COMMUNITY

ALTHOUGH new to the current south-east Queensland sporting landscape, the Brisbane Bullets have a rich basketball ...

Related News

JB HI-FI IS THE GOOD GUY IN $870 MILLION ACQUISITION

ELECTRONICS giant JB Hi-Fi has formally completed its $870 million acquisition of home appliance chain The Good Gu...

ACCC ACTS AGAINST MERITON'S RIGGED REVIEWS

MERITON Property Services is under fire from Australia's main consumer watchdog, after it allegedly engaged in mi...

ACCC FIRES WARNING SHOT TO IVF PROVIDERS

IVF clinics have been put on notice by consumer watchdog, the Australian Competition and Consumer Commission (ACCC...

BIG W CEO QUITS AFTER 11 MONTHS

SALLY MacDonald has resigned as chief executive of BIG W ending her tenure at the helm of the struggling discount ...

Contact us

Email News Update Sign Up Contact Details

Subscribe to our mailing list

* indicates required
Email Format

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter