Publicly-listed Vita Group has got one extra year in its Telstra Dealer Agreement and Master Licence, extending it now to 30 June 2024.
This is the second extension Vita Group has attained, with a previous extension being announced on 11 August 2017. At the time, the tenure of the agreement had been extended to 30 June 2023, with rolling annual extensions after this date.
According to Vita Group, the extension demonstrates confidence in its long-standing partnership with the telco, on top of "Vita’s ability to consistently execute strongly in market".
“We are very pleased with the extension of our agreement with Telstra," Vita Group CEO Maxine Horne said. "Our team continues to deliver against Telstra’s performance expectations, and we remain focused on ensuring that our partnership remains strategically aligned and operationally strong.
"Our role is to support Telstra in achieving its strategic and performance objectives, including the delivery of their T22 plan.
"This extension reflects the confidence Telstra continues to place in Vita Group to deliver results in line with our shared goals," Horne added.
In August 2018, Vita Group said it was betting on a new strategy proposed by Telstra which would see the telco's retail licensee operate fewer points of presence across significantly expanded territories.
Vita Group, which operates 105 Telstra licensed stores and 23 Telstra business centres, told shareholders on 17 August it entered a process to transition from the Telstra Business Centre model to become part of a new, premium Telstra Business Technology Centre (TBTC) model in FY19.
According to Vita Group, TBTCs will service small-to-medium businesses with more complex technology needs, offering whole-of-business solutions through highly trained consultants.
"Small business customers with relatively simpler needs will be serviced by the retail channel, utilising existing infrastructure, but with whole of business solutions," the company stated. "This represents a significant opportunity for Vita’s retail channel.
"In enterprise, the group will continue to focus on improving product mix and profitability across its key accounts."