2degrees loses $33M

  • 01/06/2016
2degrees loses $33M

2degrees Mobile, New Zealand's third-largest telecommunications company, reported a net loss of $33.1 million for the year to Dec. 31 on 43 percent revenue growth.

This is the first time it has cracked half a billion dollars of annual turnover since purchasing internet service provider Snap last year to expand to a full-service offering.

Revenue increased to $569 million compared to $397.6 million the previous year, but total expenses rose 18 percent to $279.6 million to produce a pretax loss of $35.6 million. A tax credit of $2.5 million helped narrow the net loss from the previous year's loss of $33.6 million.

At a briefing for journalists, chief executive Stewart Sherriff declined any comment on speculation about the potential for an ASX capital-raising of up to $150 million, widely reported and not denied by the company early last month.

Mr Sherriff focused on the company's earnings before interest, tax, depreciation and amortisation measure, which a 35 percent improvement. The company didn't provide a breakdown of its ebitda calculation.

The company highlighted the growth in its monthly paid mobile subscriptions, now standing at 56 percent of revenue, the second year that monthly paid has outstripped revenues from pre-paid.