Menu
2degrees reports maiden profit

2degrees reports maiden profit

Important milestone is reached by New Zealand's third mobile network operator.

Stewart Sherriff, CEO of 2degrees, said the company has evolved into a full-fledged operator after its early days as a prepaid mobile play.

Stewart Sherriff, CEO of 2degrees, said the company has evolved into a full-fledged operator after its early days as a prepaid mobile play.

Year-on-year double digit growth in revenue and EBITDA propelled challenger telco 2degress into the black for the first time.

In a release, the company reported revenue of $702.7 million and a $13.4 million profit for the year ended 31 December after a $33.1 million loss in 2015. Its financial statements have yet to appear on the Companies Office website.

2degrees chief executive Stewart Sherriff said the result was an important milestone after seven years of business in New Zealand. The company also grew its postpaid mobile customer base by 19 per cent.

“Last year was a turning point for 2degrees," Sherriff said. "Total revenue grew as average customer revenues increased, while network costs reduced as we completed a mobile network extension programme.

"It was also the first full year of 2degrees broadband, with customer numbers growing more than 100 per cent as our full service bundle gained traction in the consumer market and our Telecommunications as a Service (TaaS) offering attracted large government organisations such as Ministry for Primary Industries.”

Sherriff said what started as a prepay mobile price play has become "so much more, with national mobile and broadband networks serving all market segments.”

2degrees uses Vodafone's network as well as its own to provide that coverage.

Sherriff said investments in network and technology have enabled the recent launch of New Zealand’s first unlimited mobile data plan, along with the introduction of "Data Clock", offering time-based data for prepay customers.

2degrees is also looking at opportunities in rural New Zealand. The company is part of the Rural Connectivity Group to deliver the second tranche of the government’s Rural Broadband Initiative.

Under that, 2degrees would invest in shared infrastructure with competitors while continuing to compete vigorously at the retail level.

2degrees' major shareholder is Toronto-listed Trilogy International which also operates mobile services in Bolivia.


Follow Us

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags mobileVodafonerural broadbandRural Broadband Initiative2degreesspark

Featured

Slideshows

Meet the leading female front runners of the Kiwi channel

Meet the leading female front runners of the Kiwi channel

Reseller News honoured the leading female front runners of the New Zealand channel at the 2018 Women in ICT Awards (WIICTA) in Auckland. The awards honoured standout individuals across seven categories, spanning Entrepreneur; Innovation; Rising Star; Shining Star; Community; Technical and Achievement.

Meet the leading female front runners of the Kiwi channel
Meet the top performing customer-centric Microsoft channel partners

Meet the top performing customer-centric Microsoft channel partners

Microsoft honoured leading partners across the channel following a year of customer innovation and market growth in New Zealand. The 2018 Microsoft Partner Awards recognised excellence within the context of the end-user, spanning a host of emerging and established providers.

Meet the top performing customer-centric Microsoft channel partners
Reseller News launches new-look Awards at 2018 Judges’ Lunch

Reseller News launches new-look Awards at 2018 Judges’ Lunch

Introducing the Reseller News Innovation Awards, launched to the channel at the 2018 Judges’ Lunch in Auckland. With more than 70 judges now part of the voting panel, the new-look awards will reflect the changing dynamics of the channel, recognising excellence across customer value and innovation - spanning start-ups, partners, distributors and vendors.

Reseller News launches new-look Awards at 2018 Judges’ Lunch
Show Comments