Australia’s largest Telstra dealership, Vita Group, has more than doubled its net profit according to its full-year results.
The telecommunications and computer retailer, which comprises of Telstra, Fone Zone, Next Byte and One Zero stores, reported a 32 per cent lift to EBITDA and an annual profit of $6.2 million, up from $3 million in the previous year.
The strong result came off the back of revenue growth from Telstra stores, which grew 9 per cent and 25 per cent in the first and second half of the financial year.
Mobile volumes grew, but growth was especially pronounced in fixed products such as broadband, media and NBN, with gross contribution from these products up 60 per cent.
However this strong performance was offset by a decline in Fone Zone revenue, as new investment was directed towards Telstra stores.
The Next Byte result saw a 16 per cent drop in revenue, resulting in a $1.8 million loss for the period. This was put down to the transition to the new-format Apple Premium Reseller model and the limited Apple product releases in the second half of the financial year.
The board also declared a full-year dividend of 2.83 cents per share up 89 per cent from the previous period, which will be paid to shareholders on October 10. Vita Group CEO, Maxine Horne said it was a pleasing result.
“Our strategy to invest in a high-quality store portfolio aligned to the market leader, Telstra, is paying dividends,’’ she said. “Our focus is now on driving maximum value from our Telstra portfolio, lifting performance of Next Byte and investing in the SME and enterprise market where we have expertise and capability, but lack scale.”
Vita currently holds 84 Testra stores, 12 Telstra Business Centres, 34 Fone Zone stores, 17 Next Byte stores and 30 One Zero stores.
