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Teamtalk

IRG

Friday 8th March 2013 1 Comment

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Teamtalk Limited is a New Zealand-based company.

The Company is engaged in the provision of mobile radio networks and high speed broadband services in New Zealand.

The company operates in two segments: Mobile Radio and Broadband Networks.

Mobile Radio segment includes the traditional mobile radio business of the parent company along with associated finance leasing, data and GPS tracking products.

Broadband Networks segment includes Araneo Limited and CityLink Limited who both provide broadband connectivity and ancillary related services to a range of wholesale customers and end users.

The Company purchase products and services from a range of suppliers, which include Telecom, Chorus, Kordia, Tait Electronics, Motorola and Tyco.

The Company’s subsidiaries include CityLink Limited and Araneo Limited, which is engaged in broadband services.

On December 17, 2012, it acquired BayCity Communications Limited (which, together with its subsidiaries is referred to as the Farmside Group).

Teamtalk Limited is a New Zealand-based company. The Company is engaged in the provision of mobile radio networks and high speed broadband services in New Zealand. The company operates in two segments: Mobile Radio and Broadband Networks. Mobile Radio segment includes the traditional mobile radio business of the parent company along with associated finance leasing, data and GPS tracking products. Broadband Networks segment includes Araneo Limited and CityLink Limited who both provide broadband connectivity and ancillary related services to a range of wholesale customers and end users. The Company purchase products and services from a range of suppliers, which include Telecom, Chorus, Kordia, Tait Electronics, Motorola and Tyco. The Company’s subsidiaries include CityLink Limited and Araneo Limited, which is engaged in broadband services. On December 17, 2012, it acquired BayCity Communications Limited (which, together with its subsidiaries is referred to as the Farmside Group).

Key Statistics
Issue:                 28.05 mn
Market Cap:        75.73 mn
PE Ratio:                   14.38
EPS:                18.77 cents
Div:                      20 cents
Div Yield:                7.41%
NTA:                          21.32 

TeamTalk made a net profit of $1.7 million, in the six months ended Dec. 31, compared to $5.4 million, a year earlier. TeamTalk sales slipped 0.8 percent to $16.7 million from a year earlier.

Earnings before interest, tax, depreciation and amortisation were $5.1 million, including a $247,000 contribution from Farmside. TeamTalk now expects annual EBITDA to fall short of last year's $8 million, which it previously expected to match.

TeamTalk, which bought the rural telecommunications provider Farmside last year, has cut its annual earnings guidance, blaming the cut on the government-imposed levy to pay for servicing unprofitable customers in remote areas.

TeamTalk now expects to fork out about $500,000 a year to cover the levy.

TeamTalk is upbeat about the second half of the year, and still plans to pay annual dividends of 20 cents per share. The board declared an interim dividend of 10 cents, with a record date of April 19, payable on April 27.

DISCLAIMER: To the extent that any of the content above constitutes advice, it is general advice that has been prepared without reference to investor’s objectives, financial situation or needs. Before acting on any advice, investors should consider the appropriateness of the advice and IRG recommend that investors should obtain appropriate financial, legal and taxation advice before making any financial investment decision. The report is based on information compiled from public information and private research. IRG have completed the report on a best endeavours basis and do not accept any liability of loss or damage. IRG suggest that clients use this as part of a decision making process and check key data before making any investment decisions.
Employees may have an interest in the securities discussed in this report.



Comments from our readers

On 17 March 2014 at 1:05 pm Tim Martin said:
Oh how the mighty have fallen. This company has lost close to 40 % of its share value is less than a year with more blood yet to flow. The result of a CEO who has shown a propensity it get out the cheque book and throw good money at business's flogging yesterday's technology at inflated prices. Both farmside and city link and the traditional mobile radio network are being surpassed by business's with better technology and more competitive pricing. Will the board wake up and make the changes in time or is it too Late. Either way it would make a great case study in mismanagement and a lack of corporate ethics.
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