2degrees followed its 2016 maiden profit with a 33 percent lift in the year ended December 31. The telco saw revenue grow faster than costs. Net profit for the year was $19 million, up from the $14.3 million a year earlier. Revenue climbed 4.3 percent to $732.7 million. Costs excluding finance was up 4.1 percent on the year earlier. The company cut its finance costs and banked a $1.5 million income tax credit.
The company says by the end of 2017 its 4G mobile network covered 96 percent of the population. A year earlier it was 79 percent.
2degrees lost more than 40,000 prepaid subscribers during the year taking the total below a million to 982,600. In financial terms, this is more than offset by an increase in postpaid subscribers. There are now 396,000 up from 372,000 a year earlier. The total number of mobile connections dropped slightly. 2degrees remains a long way behind Vodafone and Spark which each have around a million more connections.
Postpaid mobile customers are far more valuable than prepaid customers. The average revenue per postpaid user is US$36.32 compared with US$7.98 for prepaid. The numbers come from 2degrees’ majority shareholder Trilogy International which reported them to the Toronto Stock Exchange. Trilogy owns almost three quarters of 2degrees.
The Trilogy report also says 2degrees' revenue was up 14 percent in the first quarter of 2018.