Enable sees off quakes with $500k profit
Council-owned Enable enjoys strong growth; refuses comment on possible joint venture with Chorus.
Council-owned Enable Networks has reported a $454,000 net profit for its financial year ending June 30, and 170% growth in revenue to $4.9 million.
Chief executive Steve Fuller told the council's annual meeting that growth came despite extraordinary costs associated with bidding for the UFB project.
There was also an asset impairment loss of $148,000 due to earthquake damage. Enable's underground underground fibre network survived largely unscathed, Mr Fuller said.
“If it was not for these two exceptional costs, our net profit would have been over $700,000 representing a 60% increase on 2010,” the CEO told the meeting.
He added, “We launched the UFB project last week. We already have teams in the field building the first residential phase and are about to start adding commercial areas of the city not already able to access our 350 kilometre business network.
“By August 31 2012, the number of commercial entities and residential premises that can connect to our network will more than double – to over 20,000.
“In addition, over 200 local jobs are being created immediately in order to build the new fibre network – and more will follow.”
Enable won the Christchurch contract for the government's $1.35 billion Ultrafast Broadband (UFB) project - with a special provision allowing a joint venture with Telecom's soon-to-be-spun-off Chorus division.
Mr Fuller has repeatedly refused to answer NBR's questions about joint venture talks, citing commercial confidentiality.
Today he offered only, "There’s no further update we can provide at this stage.”
Chorus chief executive Mark Ratcliffe earlier told NBR his company was talking to all UFB contract winners.
“If it was not for these two exceptional costs, our net profit would have been over $700,000 representing a 60% increase on 2010,” Mr Fuller told the meeting.
The earthquakes caused almost no damage to Enable's underground fibre network, Mr Fuller said.
NBR staff
Thu, 17 Nov 2011
Thu, 17 Nov 2011
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Enable sees off quakes with $500k profit
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