2degrees reports maiden profit
- 17 May, 2017 12:36
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.