A strong performance in the Australian operation of Gen-i has enabled the systems integrator to deliver improved profit margins to its parent company, Telecom New Zealand.
Delivering Telecom New Zealand's second-quarter results, chief executive officer Paul Reynolds said Gen-i contributed quarterly revenues of $NZ100 million ($A78.42 million), down 10.7 percent, but enjoyed better margins, with profitability up 9 percent to $60 million.
"Gen-i's increase in EBITDA [earnings before interest, tax, depreciation and amortisation] was driven by IT Solutions growth, strong performance from our Australian business and a focus on lowering costs," said Gen-i chief executive officer Chris Quin.
Dr Reynolds said he was "pleased" with Gen-i's margins: "We were targeting the margin up".
He said Gen-i was converting PABX telephone systems to systems based on internet protocol and bringing applications to mobile devices.
Dr Reynolds said Gen-i would launch network services with a "big focus on security, cloud and resilience" in the next half of the year.
"Our embracing of cloud services is going to reduce costs and continue that margin improvement," he said.
Issue: 315 | May 2013
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