2 Jun 2010

Lower profit reported by Zintel

6:04 am on 2 June 2010

Zintel made $488,000 in the year to the end of March - down significantly on a profit of $3.42 million the previous year.

The telecommunications company attributes the decline to costs associated with acquiring the Cogent business, and some expected trading losses.

Revenue grew 27% to almost $50 million.

The company says trading conditions have been challenging and it's felt the effects of the global financial crisis, particularly in large contracts with Government.

However, Zintel says it will grow over coming years, so it's considering moving its listing from the alternative market to the main NZX board, which it expects would improve share liquidity.