Cellnet On Course Through Choppy Conditions
The Age
Tuesday September 10, 2002
Australia's biggest mobile phone accessories distributor, Cellnet Telecommunications, lifted sales and profit figures in the year to June despite some of the toughest trading in decades.
Net profit was $8.11 million and Cellnet managing director Mel Brookman said yesterday he was confident the current year's earnings would show further improvement as the company's focus on additional products and refinement of its back-end distribution systems paid off.
He said the company's expansion into the information technology market was starting to deliver quantifiable results.
The IT wholesale division achieved sales of $109 million in 2001-02, up from $57 million in the previous corresponding period.
Cellnet, which distributes mobile phone handsets, accessories and related IT products throughout Australia and New Zealand, recorded a 38 per cent rise in revenue to $341.05 million in the latest year.
The telecommunications division achieved a 22 per cent lift in annual sales to $232 million, which contributed 70 per cent to total group sales.
Mr Brookman said he was pleased with the earnings performance considering the choppy trading conditions experienced by the industry in 2001-02.
``Despite a decrease in overall telecommunications and IT spend in Australia and New Zealand, we have continued to grow, which is testament to our product diversification, strong consumer relationships and focus on cost savings and efficiencies," Mr Brookman said.
He said Cellnet would be able to capture a bigger net profit this financial year, following a rebound in consumer demand for telco goods.
Mobile phone handset sales in Australia hit 4.3 million in 2000-01 and then crashed to 3.1 million in 2001-02.
But Mr Brookman said they were expected to increase to about 3.8 million this year.
Cellnet is hoping new offerings such as colour and data-enabling terminals, as well as the impending introduction of 3G technologies, will also stimulate demand.
The company declared a fully-franked final dividend of five cents a share, payable on October 4, with a record date of September 20.
Shares in Cellnet finished yesterday up four cents at $1.42.
CELLNET TELECOMMUNICATIONS Full year ($m) 2001-02 2000-01 Revenue 341.0 247.6 Depreciation -1.1 -0.7 Interest -1.5 -1.7 Tax -3.8 -4.5 Net Profit 8.1 7.7 Final div (Oct 4) 5 3.5 Interim 4 3.5
© 2002 The Age
Share This