Annual Report 2006

The Transmission Holdings Limited (THL) Group has delivered a net profit after tax of NZ$9.8 million for the year ended 30 June 2006, with revenue up by 54 per cent to NZ$201 million.

THL Group Chairman Wayne Brown said the result reflected a year of extraordinary change and growth for the business.

"A year ago, the company was facing some difficulties and uncertainties, but the Board has rectified these problems and established a platform for growth in Australia and New Zealand, and across the Asia-Pacific.

"The acquisition of AAPCS late last year has increased turnover and earnings to give the Australian operations a new level of scale and diversity, and both THL Australia and AAPCS have done well to diversify their income base while still supporting their main customers.

"BCL has had a leading part to play in the development of the country-wide Free-To-Air digital television project, and is focused on becoming more aligned with the needs and demands of the end-user over the next financial year," he said. "It is also launching its Digital Audio Broadcasting (DAB) trials out of Wellington and West Auckland later this month."

The return on shareholder equity is 9.7% (compared with 10.9% for the previous year). Earnings before interest, taxes, depreciation and amortisation (EBITDA) were $47.7 million (compared with $45 million for the previous year) and the total 2006 dividend to the shareholder is $6.8 million (compared to $10.6 million for the previous year).

THL Group's strategy for growth means that a balanced combination of broadcast and telecommunications skills now places the Group firmly in the high-growth sector of technology, media and telecommunications (TMT). Coupled with a shift to de-centralised, profit centre accounting and consolidated business platforms, the company is poised to take on a new name and a new identity - to be announced next week.

"THL Group is undergoing significant change, and the launch of our new name and our new brand is the next logical step in the transformation. We are set to become the region's leading provider of customised broadcast and telecommunications networks, network services and converged solutions," says Brown.