VITA GROUP SOARS WITH TECH BOOM
Written on the 27 February 2015
ELECTRONICS, IT and communications company Vita Group (ASX: VTG) has recorded another strong half year result supported by adding further stores to its network.
VTG added six Telstra retail stores and three Telstra Business Centres during the period to raise its Telstra network to 100 retailers and 16 business centres as at 31 December 2014.
The VTG network also includes Fone Zone, Next Byte and One Zero stores.
Telecommunications revenue was up 50 per cent ($261.1 million) on the prior corresponding period contributing to a group revenue boost of 36 per cent to $292.7 million.
Underlying NPAT welcomed a 121 per cent increase to $9.3 million, while NPAT saw a slightly decline from $15.2 million to $13.4 million.
VTG CEO Maxine Horne (pictured) says strength in retail from product to service underpins the company's interim result.
"Vita Group's retail channel is delivering on its promise - indeed, it is exceeding expectations - in a dynamic and competitive marketplace," says Horne.
"Our investment in the development of our people - in areas such as leadership and driving exceptional customer experiences - is evident in the strong like-for-like performance delivered across the network.
"Customers are responding to our compelling product offer coupled with personalised service.
"Mobile was strong, supported by the launch of the iPhone 6, but we also delivered growth across the fixed, broadband, media and value-added services categories in retail and business channels.
"However, we remain vigilant as we look to the future, and will continue to seek opportunities to drive growth and improve profitability, and create value for our shareholders and strategic partners."
VTG made significant progress in growing its B2B offering where revenues lifted 72 per cent and EBITDA 258 per cent.
The board declared a fully franked dividend of 4.12c per share to be paid on 10 April, more than double the 1.91c per share of the prior corresponding period.