ELECTRONIC RETAILERS A BOON FOR VITA GROUP
26 February 2016,
TELSTRA and SMEs have boosted Vita Group's (ASX: VTG) bottom line during the half year, fuelling a 35 per cent rise in the Brisbane communications company's profit.
ASX-listed Vita Group also experienced a rise in its underlying earnings before interest, tax, depreciation and amortisation (EBITDA) of 46 per cent to $30.4 million for the half year.
The company's net profit after tax was $19.4 million.
Early days, but a switch in focus from Apple to Telstra appears promising for 21-year-old Vita Group.
The Brisbane business announced the closure of Next Byte stores in December and is experiencing a growing momentum for its Telstra-branded retail stores, fuelled by SMEs.
Vita Group CEO and founder Maxine Horne says the company is delivering on its strategic priorities - such as scale and profitability in the SME channel and optimising its retail portfolio - and seeing healthy returns.
"Vita's longstanding partnership with Telstra, Australia's leading telecommunications brand, continues to provide benefits to both parties, and we value the edge it gives us in a competitive market," says Horne.
Vita Group's retail business, comprising mostly of Telstra, grew its revenue 22 per cent over the half year.
Fone Zone, which marked the beginning of the company in 1995, and One Zero stores were said to deliver less of a standout contribution.
Collectively though, Vita Group revenues grew 23 per cent during the six months to $321.2 million.
Vita Group will pay an interim dividend to its shareholders of 5.76c per share on April 8.