Vita Group revenues take a hit

Closes three Next Byte stores to boost profits

Next Byte and Fone Zone owner Vita Group (ASX:VTG) has posted a revenue of $292 million for the financial year ended 30 June, down $5 million on its 2009 result.

Earnings before interest and taxes was $11.4 million, up from $8.1 million last year, while net profit after tax was $7.7 million.

In a statement to the ASX, chairman Dick Simpson said that its after tax profit increased due in part to the payment by Telstra of trailing commissions.

Vita Group also closed three of its lower performing Next Byte Apple reseller stores to reduce expenses. It opened 13 new franchised T[life] stores, eight Telstra licensed stores and a Telstra business centre.

The company now has a total of 31 Telstra stores.

Simpson said that although the outlook for retail trading is mixed, the board is positive about the future.

“We believe the company is positioned to continue to take advantage of opportunities to grow given that we operate in telecommunications and information technology," he said.

"We have also continued to develop our relationship with our two business partners, Telstra and Apple."

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Tags financial resultsvita groupnext byte

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