Vital Limited Analysis

Overview

Vital is the provider of fundamental nationwide infrastructure and communication services that are Vital to New Zealand. We have been providing connected, seamless, integrated communications and coverage in New Zealand's most remote locations for over 25 years. We own and operate fibre in Auckland and Wellington positioned to take advantage of growing data consumption, are the largest commercial provider of nationwide radio in New Zealand and provide linking radio services through microwave to some of the remotest parts of New Zealand.

We serve many customers across New Zealand including; Government, Civil Defence, Emergency Services, Health, Utilities, Public Transport, Education, Logistics & Freight, Agriculture and Channel partners.

We look forward to providing Vital services for another 25 years.

Vital is the new name of TeamTalk and CityLink.

Performance

The following information was extracted from Vital Limited's Full year report, released 29 August 2025

Overview:

• FY25 results met guidance metrics
• Adjusted revenue: $26.5m, down 1.2%, impacted by economic headwinds in fibre
• Adjusted Net Profit After Tax (NPAT) down $0.238m to $0.015m; with interest and net debt reduced. Capex flat on prior year.
• Operating costs slightly up for the year mainly due to product mix. Notably H2 operating expenses were down 2.1% on H1
• Operational foundations in place for economic recovery
• Takeover activity well managed with no adverse effect to normal business operations. Tait Offer closes 12 September; Board unanimously recommends acceptance by shareholders

-Wireless revenue up 3.8%, driven by refreshed sales strategy and new contracts including Transpower

-Healthy pipeline in utilities and energy, with wins in grid, solar and other sectors

• Wired segment under pressure, revenue down 11.0% largely due to the exposure to economic headwinds on Wellington fibre customers

Financial Performance:

Financially, VTL’s results were within guidance. Group revenue was $26.5m, down 1.2% on the prior year, mainly due to persistent economic challenges for enterprise Wired (Fibre) customers, industry consolidation, and VTL’s high exposure to public sector and Wellington fibre clients. This led to more circuit rationalisations than additions, resulting in an 11.0% decline in Wired revenue.

Offsetting some of the Wired decline was a solid Wireless performance, with revenue up 3.8% year-onyear, reflecting the success of a refreshed sales and channel strategy, particularly in the Utilities and Energy sectors.