Announcement
FLLYR: TPW: Trustpower 31 March 2021 Financial Results & Annual Report
08:30am
TPW
17/05/2021 08:30
FLLYR
PRICE SENSITIVE
REL: 0830 HRS Trustpower Limited
FLLYR: TPW: Trustpower 31 March 2021 Financial Results & Annual Report
Strong performance in both retail and generation contribute to Trustpower's
positive result for FY2021
Trustpower Limited (NZX: TPW) today announced its financial results for the
year ended 31 March 2021, seeing off the challenges of 2020 to deliver a
seven percent increase in EBITDAF*.
Both the retail and generation operations contributed to the strong result.
Retail earnings increased 33 percent on the previous year, from $35.3 million
to $47.0 million, with the introduction of mobile to the company's bundled
product offering and continued customer migration to higher value broadband
plans seeing a significant increase in telco revenue.
Generation delivered a solid EBITDAF* of $154.1 million, in line with the
previous year, despite extended dry sequences seeing inflows only reach 83
percent of average levels.
"Trustpower's balanced portfolio of geographically dispersed assets, an
ongoing commitment to asset enhancement, and astute placement of product to
market has seen us recover from a reduced half year result to end the year in
line with last year," says Trustpower chief executive David Prentice.
The year included a number of significant operational achievements, which saw
the company delivering on previously stated ambitions and demonstrating a
responsiveness to the changing post-COVID operating environment. Highlights
include:
o The stand up of the Amazon Connect telephony system in just ten days to
enable quality customer service and sales operations while working from home.
o The continued expansion of Trustpower's ISP infrastructure from the USA
into Singapore, delivering an improved customer experience that is cost
effective.
o The addition of mobile to Trustpower's bundled product set with strong
weekly growth rates.
o Launch of the 'Meant to be together' brand advertising campaign,
reinforcing Trustpower's position as the market leader in bundled utility
products.
o The launch of a voice of customer programme to track, understand and remedy
pain points in the customer experience journey, as part of a commitment to
customer-centricity.
o Successful execution of asset maintenance and enhancements despite ongoing
COVID-19 Alert Level changes throughout the year.
o Enhancements at Waipori, Cobb and Kumara contributing an additional 9.5GWh
in annual generation volumes.
Trustpower Chair Paul Ridley-Smith says the strong performance of each
operation reaffirmed the Board's decision to explore the potential sale of
the retail business and establishment of a standalone generation business.
"We firmly believe in the growth potential of both the generation and retail
businesses. These results confirm that both generation and retail are sound
operations that could thrive independently of each other."
STRATEGIC REVIEW
On 28 January 2021 Trustpower announced a strategic review of its retail
business. This review is aimed at testing market interest in the sale of its
mass market retail business and exploring the business case for a standalone
generation business. On 28 April 2021 Trustpower announced its intention to
enter into due diligence with a number of interested parties to further
explore the possible sale of the retail business. At the time of this
announcement the process remains ongoing.
DIVIDEND
Mr Ridley-Smith announced the Board has approved a fully imputed dividend of
17.0 cents per share, as well as a one-off special dividend of 1.5 cents per
share, also fully imputed. Mr Ridley-Smith says the special dividend is a
'catch up' on the previous year where Trustpower declared a reduced dividend
of 15.5 cents per share amidst the uncertainty surrounding the impacts of
COVID-19.
Together with the interim dividend of 17 cents per share paid in December
2020, this provides a total fully imputed dividend of 35.5 cents per share
for the 2021 financial year. The dividend will be paid on 18 June 2021.
FY2022 GUIDANCE
Trustpower will look to provide market guidance once the results of the
strategic review are known.
ENDS
End CA:00372274 For:TPW Type:FLLYR Time:2021-05-17 08:30:53
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