Telstra cuts remuneration for Vita Group
Telstra's only master reseller partner – Vita Group – had a turbulent year, when Telstra revealed its intent to cut remuneration for partners.
Telstra will gradually cut remuneration for stores by 30 percent over the next three years in addition to cuts Vita already agreed to at the beginning of 2017. Vita was immediately hit with a five percent drop in like-for-like revenue despite revenue from its retail channel up two percent in FY17.
In exchange for the remuneration cuts, Vita revised its master license agreement with Telstra allowing it to increase its store footprint from 105 to 110 stores. Vita's shares dropped from a high of $3.65 in March prior to the announcement to a low of 86 cents in May. Shares are currently trading at $1.32 at the time of writing.
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