TeamTalk announces $1.4 million profit for six months to December 2003

TeamTalk also paid tax on its profit for the first time since the company was founded ten years ago.

"This result is really a coming of age for TeamTalk," Managing Director David Ware said. "Paying tax on our profits for the first time shows that we have reached an enviable position."

"We have grown from a small, entrepreneurial and ambitious telecommunications player, to a solid and stable company with strong cashflows and admirable profits; focused on cost-containment and controlled growth.

Revenue growth in TeamTalk's main network was offset by the continued run-off of an equipment finance book that was purchased from Telecom along with its mobile radio assets in 2001.

"We have replaced the equipment finance book we purchased from Telecom with a new finance plan developed by TeamTalk. Thus, as the old book runs off over the next six months, we expect overall revenue growth will be restrained. However, the company is far more comfortable with the terms of the new book, and we expect it to be a good contributor to our company's growth as time goes on.

Costs also increased following the establishment of an R&D program to develop an alarm monitoring system, which is currently being trialled by major security companies.

"We have received excellent feedback on our alarm monitoring system which is more reliable, secure and cheaper than existing products on the market, and we expect to officially launch the product later in the quarter," Ware said.

Mobile handsets in the market increased by 1% in the six-month period and disconnections fell by over 20%. Several major new contracts are expected to be signed in the near future which will further increase TeamTalk's mobile radio revenue.

TeamTalk paid its maiden dividend in October last year following the release of the company's annual result. TeamTalk's directors have yet to decide upon the company's interim dividend policy, and will advise shareholders in due course.

"TeamTalk has now reached the next stage in our evolution. We have begun the year on a strong note, and expect to continue to deliver value to our shareholders and further strengthen our position in the New Zealand telecommunications market," Ware said.

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