Menu
Brexit effect helps Vodafone NZ into the black

Brexit effect helps Vodafone NZ into the black

A big currency movement appears to have boosted Vodafone NZ's bottom line.

Brexit has been good news for Vodafone NZ, lowering its borrowing costs and helping it back into the black.

Brexit has been good news for Vodafone NZ, lowering its borrowing costs and helping it back into the black.

Credit: Dreamstime

Vodafone NZ has made a profit and paid tax for the first time since 2013 - with a big assist coming from Brexit.

Vodafone's revenue cracked $2 billion, up 2.8 per cent, and the local company recorded a $57.5 million profit in the year to 31 March.

That profit turned around an $18.3m loss in 2016.

Net finance costs fell to $41.8 million from $71.7 million, assisted considerably it seems by exchange rate changes since The UK's Brexit decision.

Over the past two years the New Zealand dollar has appreciated from just over 40 cents in the UK pound to over 55 cents, making a big difference to the cost to Vodafone NZ of over $1 billion in loans from its UK parent.

The Brexit referendum vote which sent the pound into a nose-dive occurred on 23 June 2016, so Vodafone NZ has had the benefit of the improved exchange rate through most of its 2017 financial year.

Vodafone's accounts do not appear to disclose the interest rate paid on its UK-denominated loans, which also fell in total from $1.15 billion to $1.01 billion during the year.

Vodafone's arch-rival, Spark, also reported positive results this month with 3.3 per cent growth in total revenue for the year ended 30 June.

In a statement Vodafone NZ chief executive Russell Stanners described the results as "pleasing" in a very competitive market.

“This strong performance is the result of our focus on network experience and customer service combined with a strong focus on cost management," he said.

“Vodafone’s investment in our network and infrastructure have resulted in a series of independent endorsements, most recently being named the fastest mobile and fixed network operator in the country by independent consumer test Ookla.”

Other positive indicators included a 15 per cent reduction in calls to Vodafone's call centre and gains in customer satisfaction measures, he added.


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 VodafoneNew Zealandannual resultBrexit

Featured

Slideshows

The making of an MSSP: a blueprint for growth in NZ

The making of an MSSP: a blueprint for growth in NZ

Partners are actively building out security practices and services to match, yet remain challenged by a lack of guidance in the market. This exclusive Reseller News Roundtable - in association with Sophos - assessed the making of an MSSP, outlining the blueprint for growth and how partners can differentiate in New Zealand.

The making of an MSSP: a blueprint for growth in NZ
Reseller News Platinum Club celebrates leading partners in 2018

Reseller News Platinum Club celebrates leading partners in 2018

The leading players of the New Zealand channel came together to celebrate a year of achievement at the inaugural Reseller News Platinum Club lunch in Auckland. Following the Reseller News Innovation Awards, Platinum Club provides a platform to showcase the top performing partners and start-ups of the past 12 months, with more than ​​50 organisations in the spotlight.​​​

Reseller News Platinum Club celebrates leading partners in 2018
Meet the top performing HP partners in NZ

Meet the top performing HP partners in NZ

HP has honoured its leading partners in New Zealand during 2018, following 12 months of growth through the local channel. Unveiled during the fourth running of the ceremony in Auckland, the awards recognise and celebrate excellence, growth, consistency and engagement of standout Kiwi partners.

Meet the top performing HP partners in NZ
Show Comments