Mark Callander: 2degrees CEO on the company's net loss of $18.2 million for 2025

Telco provider 2degrees made a net loss attributable to shareholders of $18.2 million for the 2025 financial year.

Despite this, operating earnings and overall revenue, plus revenue in key product categories such as mobile, broadband and energy, were up.

CEO Mark Callander says it's a tough economic environment - but the company's hoping things will pick up.

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Episode Transcript

Speaker 1 (00:00):
Two degrees has booked a net loss of eighteen point
two million bucks for the twenty five financial years, significantly
worse than last year's three point one mostly down to
one off costs though and operating earnings, mobile, broadband and
energy revenues all up. Mark Calendar two degrees tief executive
with me tonight. Hey, Mark all Ron, thanks for having me.

(00:20):
So I made a net loss, yes, but fair to
say you're not too worried about that.

Speaker 2 (00:26):
No, not at all. The businesses operating two plan if
not ahead of it. Again, a lot of the losses
that reported were non cash related, so it's about forty
five million and non cash related if you actually look
at the net cash from operating in our trading here.
But we've got very significant games year on you.

Speaker 1 (00:42):
Mobile, broadband, energy revenues all up. You've managed to do
that m part by growing big clients, corporate clients, government clients.

Speaker 2 (00:52):
Yeah, absolutely, we've We have got growth across the board.
Our total revenue is up about three point nine percent,
but as you've mentioned, we've got very strong growth across
our mobile portfolio. That is across all segments, but in
particular we are having increased success in those larger enterprise
and government accounts. Again, as our businesses continue to focus
on that end of the market.

Speaker 1 (01:10):
How much money you know, how much business are you
taking off your competitors.

Speaker 2 (01:16):
It's still pretty tough out there, Ryan, So you know
it is a very tough economic environment, and you can
see that our growth against the headwinds are in the market.
We are winning more than our fair share when it
comes to some of those ones.

Speaker 1 (01:27):
How much do you think it's going to pick up
in the second half.

Speaker 2 (01:31):
Yeah, we're always optimistic. I was actually hoping to see
some green shirts this side of Christmas, but you know,
we're hopeful that we'll start seeing some good stuff happen
early next year. Again, we're incredibly well positioned, and I
think remaining positive is a really critical at this point.

Speaker 1 (01:44):
Is your short term strategy then to go after to
try and increase that market share even though the tide
isn't lifting all boats, or are you waiting for that
tide now that you've maybe maxed out your market here
you think you can get in the short term.

Speaker 2 (02:00):
No, we absolutely plan to grow more in the next
three years than we have in the previous three years.
We've set a company ambition to be the number one
player by value, innovation and growth. So for us as
a challenge of brand standing for value and fairness in
the market, we see more upside in the coming period.
So it's what will be chasing, It's what our customers
expect from us, and that's what it's about being a challenging.

Speaker 1 (02:21):
Some suggestion in the I don't know if you saw
Chris Keell's piece in the Herald today that the way
you've got these contracts might be because you are undercutting
on price.

Speaker 2 (02:32):
Again, I hear that a little bit, you know, I
think charging customers fear prices is a pretty good criticism
to have. We're absolutely out there to delivering value outside
of price. We have amazing technology and software platforms for us.
It's how we put productivity tools into our customers' hands,
and we do that at for your prices. So that's
a pretty good combination.

Speaker 1 (02:51):
Hey, I know we've spoken about this before, but the
energy arm of your business and the Gen Taylor's situation,
have you had any indication what's going to go with
We've got this report coming out, we're expecting some response
inside the next what five six days from the government.

Speaker 2 (03:08):
So now I'm waiting with baited breath Like everyone else,
I remain fear of a hopeful The sort of messaging
we're hearing is that bold changes required and bold changes coming.
So we're really look forward to seeing what shape that
comes in. And again we're focused on making sure we've
got the right incentives of generation and we have a
competitive platform which lives lower pricing to consumers. You would

(03:30):
have seen the mood of the boardroom again that came
out today and energy prices was top of mind for
many CEOs out there at the moment, So it is real,
we need to address it, and we've got to worry
about the best settings for a twenty thirty forty year timeframe.

Speaker 1 (03:43):
One of this question often comes up with two degrees mark,
Why aren't you listed on the stock exchange? You've obviously
got private owners. Is that something that is being looked at,
or that might be looked at, or that has been
I know it's been considered in the past, but is
it currently on the table.

Speaker 2 (04:01):
No, not at all. Again, we've just had a new
three year strategy reset done. As I've mentioned, we have
a growth mandate. We've got very very supportive shareholders. You know,
our job's not done in this market. We've still got
to keep fighting. We still think we can deliver better
value to consumers, and we've got to keep growing this business.
I think today's results were a really good foundation for
what lies ahead. But you know, we are just at

(04:22):
the beginning of really turning around this business.

Speaker 1 (04:25):
Mark appreciate your time. Thanks for coming on the show.
Mark Calender, Chief Executive two Degrees. For more from Heather
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