2degrees profit rises 16 percent to $339m in last year

New Zealand telecommunications company 2degrees says it has seen significant growth across its business, driving up full year revenue and profit, with a positive outlook for further growth.

The company did not release a financial report for the year ended June, but said underlying profit rose 16 percent to $339 million, compared with $291.1m the year earlier, which excluded the $620m proceeds from the sale of its towers business.

Total revenue increased 7 percent to $1.34 billion.

"2degrees continues to increase market share across consumer and business market segments, reflective of the fact that more New Zealanders are choosing 2degrees as their provider of mobile, broadband and electricity services," chief executive Mark Callander said, adding the company was committed to building its market share.

Broadband revenue rose nearly 8 percent to $415.9m from $371.6m, mobile was up 9 percent to $555m and energy up 12 percent to $122.7m.

"We're achieving this level of growth because of the value, service and productivity gains we can provide to customers when they need it most. In addition, our investment in the network continues to deliver more capacity and improved 5G coverage across the country."

Callander said momentum achieved over the last year had set the business up for continued growth over the next 12 months.

"2degrees is well positioned as customers look for better value alternatives to lower their costs and manage the impacts of more challenging economic conditions," he said, adding the company had cut expenses by 5 percent or by $15.4m in FY 2024.

However, he said savings were partly off-set by inflation, which added cost pressures in some areas of the business.

Cashflow from operating activities was up $59.0m to $169.0m, which Callander said would support ongoing capital investment in the network and digital initiatives to improve the customer experience.

Investment in proprietary software was a key point of difference in development of digital services, he said.

"Owning the technology environment will also improve opportunities for innovation across all products and markets we choose to compete in."

The company had been focused on integration and growth since the merger between 2degrees and Vocus in 2022, he said.

"We have been focused on making the three-year integration programme of work as seamless as possible for our customers while transforming the business for future success."

Sign up for Ngā Pitopito Kōrero, a daily newsletter curated by our editors and delivered straight to your inbox every weekday.