Maiden profit of $13.4m for 2degrees
Surging mobile phone and broadband usage has produced a maiden profit for the country’s number three telco, 2degrees.
The company has reported a profit of $13.4 million for the year ended December compared with the previous year’s loss of $33.1m.
2degrees said it had a second year of double digit growth as it added more higher-spending mobile customers and it expanded its fast broadband internet services. Chief executive Stewart Sherriff said mobile customers grew by 19 percent and revenue was hitting $702.7m.
“Last year was a turning point for 2degrees. Total revenue grew as average customer revenues increased, while network costs reduced as we completed a mobile network extension programme.”
The profit was the first in 2degrees’ seven years of operation. It is three quarters owned by US-based Trilogy International. Mr Sherriff said it has also benefited from buying a broadband provider, and winning contracts to supply telco services to government organisations.
He said 2degrees was maturing but looking to improve its 23 percent market share with such products as time-based data for prepay customers, and the unlimited mobile data plan. The chief executive said he was looking to broadband demand to drive growth in the coming year. The company is part of the industry rural group along with Vodafone and Spark to invest in expanding the rural network.