TeamTalk forecasts steady earnings

AUCKLAND: TeamTalk is expecting similar fullyear earnings despite higher operating costs and investment.

The telecommunications provider is expecting net profit for the year through June 2019 to be ‘‘broadly in line’’ with the $4.4 million it reported in August.

The company, which last year sold its Farmside rural internet service to Vodafone, is rolling out a new digital radio network across the country.

The network in Auckland is complete and work is under way in Northland, Waikato and Wellington. By Christmas, the project will be halfcompleted, including Tauranga, Napier, Otago, Dunedin and South Canterbury.

When completed next June it will be the only nationwide digital radio network in the country, chief executive Andrew Miller said.

TeamTalk shares rose from a ninemonth low to 81c, up 2.5%. The stock is down 13% since August 23 when the company said it would reinvest earnings rather than resume paying dividends this year.

TeamTalk provides mobile radio communications and other niche services. It has provided broadband services to the Chatham Island under the Government’s Rural Broadband Initiative since 2014 and has just had that $312,000 contract extended at an extra $8200 a month, according to Crown accounts published yesterday.

Its other main business is its CityLink arm, which provides fibre and wireless broadband services in Auckland and Wellington.