Ditching Apple to focus on Telstra pays off for Vita

Vita Group has seen strong revenue and profit growth, supporting its decision to shed Apple brand Next Byte.

The company, whose main activity is the operation of Telstra-branded stores, grew revenue 23 percent to hit $321.1 million for the six months to 31 December.

It revealed the decision in December to close its chain of Next Byte stores, after facing consistent pressure from Apple's own retail outlets.

EBITDA, excluding Next Byte, was up 25 percent to $33.5 million, and net profit after tax was up 35 percent to $19.4 million.

The company took a $4.2 million asset write-down covering the cost of closing down the remaining eight Next Byte stores.

Vita's Telstra stores blossomed, with the addition of five Telstra Business Centres helping drive a 51 percent growth in its SMB channel.

Chief executive Maxine Horne said: “Vita’s longstanding partnership with Telstra, Australia’s leading telecommunications brand, continues to provide benefits to both parties, and we value the edge it gives us in a competitive market."