Brisbane-based retail group, Vita Group, is expecting to reach pre-tax earnings (EBITDA) in the range of $23.7 million to $24.7 million for the six months to December 31.
The first half financial year result has been underpinned by the performance of Vita’s network of Telstra stores, a strong performance from its points of presence and improved contribution from the SMB channel.
"Volumes in both retail and business channels were fueled by a very positive response to the recent Apple iPhone 6 launch," Vita Group said in a statement to the ASX (ASX:VTG).
Compared to the same time last year, the Group’s underlying EBITDA was up 18 per cent to $12.1 million. However, operating revenue fell three per cent to $215.8 million.
The $23.7 million to $24.7 million EBITDA range also includes a non-cash profit contribution of about $5.5 million from the its swap and extended warranty (ESP) product program, which is higher than expected due to the cost efficiencies made to support it. It has now been retired from sale, but the Group will continue to service obligations to customers for the remaining life of the contracts.
The first half year financial result will be subject to balance of trading in December, period end accounting adjustments and an audit review.
The results for the six months to December will be announced in February.
As of June, the retail group operates 161 outlets made up of 95 Telstra-branded retail stores, 14 Telstra Business Centres, 17 Fone Zones, 21 One Zero outlets and 14 Next Byte stores.