Vita Group cracks $645m sales as Telstra Stores boom

Major Telstra partner Vita Group bounced back in its 2016 financial results thanks to a focus on SMB and enterprise in its first year since shedding its Apple retail business Next Byte.

The company reported a 19 percent increase in revenue to reach $645 million for the 12 months ending 30 June 2016.

Vita's primary business segment – retail – grew 19 percent in revenue, backed by its fleet of 100 Telstra stores along with 14 One Zero outlets and two Fone Zone stores. Three Fone Zone stores and two One Zero stores closed in 2016, hinting that the two brands could face further consolidation.

Vita didn’t disclose individual earnings of its business segments, but did say that its SMB channel business, comprising 21 Telstra Business Centres, grew 47 percent in revenue. Its enterprise channel, servicing large business and government customers through Vita Enterprise Solutions, grew four percent.

Vita closed its eight remaining Next Byte stores in December 2015 after years of tough losses. Vita has migrated its Next Byte customer services into Vita Enterprise Solutions, which it established through the 2013 acquisition of Camelon IT.

Looking ahead, Vita said it will continue investing in its enterprise channel with a focus on professional and managed services.

Shares were up around 80 cents following the announcement to reach $5.12 on Friday afternoon. Vita was introduced into the S&P/ASX 300 list of Australian companies on Friday.