10 Jun 2013

Telco's books worsening after Farmside purchase

7:00 am on 10 June 2013

Junior telecommunications company TeamTalk says its annual results will be worse than expected and its bottom line will be hit by non-cash charges relating to last year's purchase of the Farmside business.

TeamTalk paid $31 million for Farmside, which provides broadband and other technology services to those living in rural areas, with a provision to raise that to $42 million if earnings targets are met.

Managing director David Ware said TeamTalk is making a transition from a small firm to a medium company with the acquistion of Farmside.

He said it now has to gear up for its new size and is hiring new executives and beefing up its finance team, which comes with associated costs.

Even so, Mr Ware said TeamTalk sill expects to continue paying its annual 20 cents per share dividend.