WEL Group has released its interim Unaudited Financial Results for the six months to 30 September 2018, announcing a profit after tax of $21 million.
Group Chairman, Rob Campbell says the interim report for the Group is the first since entering the NZX Debt market in August 2018.
“The Group achieved a positive operating result for the six months ended 30 September 2018, with increased revenue from prior year due to higher commercial lines consumption, continued strong urban development in the Waikato region and customer growth across the fibre network.”
Group highlights include:
- Revenue of $109 million, ahead of prior year by $19 million predominately relating to strong urban development via third party contributions, increased utilisation of our electricity network and stronger uptake of fibre network access services.
- Total net debt of the Group was $513 million, an increase of $36 million from March 2018, with borrowings relating to the completion of the UFB2 fibre network build programme.
- Total assets of $1.1 billion, an increase of $46 million from March 2018.
- Profit after tax of $21 million, an increase of $11 million from the 30 September 2017 result.
WEL Networks reliability of supply result for the six months was a SAIDI of 43.02 minutes against a target 44.33 minutes (average time that customers were without electricity). A number of weather events contributed 7.63 SAIDI to the result with the largest of these in April and August.
WEL is supportive of the Electricity Pricing Review and the outcome of ensuring that customers are receiving efficient, fair and equitable prices. OurPower, our electricity retail platform, will be instrumental in supporting the wellbeing of communities through reducing the cost of electricity to consumers. Around 400 customers have joined OurPower with savings averaging 25%.
The Telecommunications Regulatory Framework Review has now concluded and while the full impact of the new regime is not likely to come into effect until 2022, UFF has received a positive outcome resulting from their interactions with the regulator and we expect that UFF will be subject to an information disclosure regime similar to WEL’s regulatory obligations.
Regional growth continues to be strong resulting in an increase in demand. Despite sustained high growth WEL continues to provide a quality and reliable power supply.
“We are encouraging customers to move towards using power at off-peak times by charging at ‘time of use’ taking advantage of our smart meters which record how much power is used at different times during the day, ensuring the price plans more closely reflect the cost of providing the service.”
Ultrafast Fibre (UFF) added 11,000 subscriber lines in the six months to 30 September to reach a cumulative 107,300 active subscribers, representing a 51.8% uptake. Some of the Ultrafast Broadband (UFB) initiative’s highest uptake areas are within UFF’s footprint with Hamilton 57%, and Tauranga 56% leading the way, with New Plymouth and Cambridge also reaching the 50% mark in the period.
In the same period UFF’s addressable market (total end user premises that can access the network) also grew by 5,700 to 207,000 due to the first UFB2 towns becoming available and new greenfields growth.
Average connection revenue per user, as well as the costs associated with physically connecting each of these users to the fibre network, are both favourable to budget and reflect well on the operational efficiency achieved by UFF and the value that our customers receive from the service.
“WEL is developing a formal approach to sustainability and corporate social responsibility. This will allow the Group to track and report on non-financial benefits being delivered to our community. WEL will align our efforts to four of the Sustainable Development Goals (SDGs); Good Health and Wellbeing, Affordable and Clean Energy, Industry, Innovation and Infrastructure and Climate Action.”
A full copy of the Interim Report is available here.
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