NZX listed telco TeamTalk (NZX: TTK) is forecasting net surplus after tax for the year to 30 June 2019 to be broadly in line with last year’s result of $4.4 million, saying rollout of its digital radio network is on track and that subsidiary CityLink will start undergrounding and improving its fibre network in the Wellington CBD later this year.
CityLink is using Powerco's gas ducts which it has exclusive rights to on a 10 + 10-year licence.
TeamTalk said its guidance came "despite an increase in operating costs associated with the investment in capability to complete the company’s transformation and to position the business to grow in future years." However its 2018 profit was 17 percent down the $5.3m of 2017.
Following rollout of a pilot radio network in Canterbury, TeamTalk says it has now rolled out the network in Auckland and is rolling out in Northland, Waikato and Wellington.
"By Christmas 2018, 50 percent of the network will have been completed including the additional regions of Tauranga, Napier, Otago, Dunedin and South Canterbury with completion of the nationwide network planned by June 2019," TeamTalk said.
When complete it will be the only nationwide digital radio network in New Zealand.
TeamTalk CEO Andrew Miller said progress with the rollout demonstrated that TeamTalk had the skills and capability to carry out the detailed design, planning and delivery of major projects.
"The new digital radio network will reduce our network asset intensity over time, improve our coverage and substantially increase the number of services we can provide," he said.