VITA'S 'BYTE' INTO TELSTRA PAYS OFF

VITA'S 'BYTE' INTO TELSTRA PAYS OFF
VITA Group (ASX: VTG) has shown the great payoff of aligning with Telstra, and focusing on a particular business segment, through its full year results today.

Vita's Telstra branded retail business underpinned its revenue and profit boost, for the board to be able to pay a fully-franked dividend of 7.98c per share, up 72 per cent from last year.

Underlying profit after tax grew 76 per cent from the same period last year to $18.1 million, from a revenue of $601.4 million, up 34 per cent from last year.

Revenue from the Telstra-strong telecommunications division of the business saw the biggest growth, increasing 44 per cent to $541.5 million.

The communications and electronics company's CEO, Maxine Horne, says Vita is increasingly focusing on the small-to-medium (SME) business segment to build scale.

"We are executing on our clearly-defined strategy and seeing earnings growth from the investments made in recent years," says Horne.

"We continue to focus on multiple horizons of growth [including] the optimisation of the retail business; building scale in the SME business segment through Telstra Business Centres, contact centres and outbound sales teams; and laying foundations for growth in Vita Enterprise Solutions servicing larger customers."

Vita added five Telstra stores and four Telstra Business Centres in the financial year, taking its network to 100 Telstra stores and 16 Telstra Business Centres.

As Apple continues to increase its market share, Vita has seen a depreciation in its Next Byte stores. Part of the company's computing division, the revenue for these stores declined 20 per cent over the year to $59.9 million.

This shows a changing of the hands, as integrated services seem to take a lead on products in the communications sector, something which Vita recognised last year when its full year loss was attributable to Next Byte for performance. 

Horne says Vita's alignment with industry leader Telstra sets the company up well for future growth.


Help us deliver quality journalism to you.
As a free and independent news site providing daily updates
during a period of unprecedented challenges for businesses everywhere
we call on your support

From pandemic side hustle to multi-million dollar business: Meet Ling Fung
Partner Content
Ask any parent, and they’ll tell you: preparing for a new baby is no easy task.&n...
Metro Baby
Advertisement

Related Stories

ACCC gives Compare the Market operator green light for iSelect takeover

ACCC gives Compare the Market operator green light for iSelect takeover

The Australian Competition & Consumer Commission (ACCC) has ann...

Sales software group Bigtincan receives $442m takeover offer from SQN

Sales software group Bigtincan receives $442m takeover offer from SQN

Sales performance software company Bigtincan (ASX: BTH) has been on...

How Sourci made it: Meet the founders behind Australia’s new e-commerce wave

How Sourci made it: Meet the founders behind Australia’s new e-commerce wave

In just four short years the co-founders of product development con...

Competition watchdog sniffs at Cochlear-Oticon acquisition

Competition watchdog sniffs at Cochlear-Oticon acquisition

The management at Cochlear (ASX: COH) are hoping to add an extra 75...