Telecom has reported a full year ebitda of $1764 million for the year to June 30, down 0.2% on the previous financial year but in line with the earnings guidance the country's second largest listed company had made.Telecom reported a 4.5% fall in its bott
Telecom has reported a full year ebitda of $1764 million for the year to June 30, down 0.2% on the previous financial year but in line with the earnings guidance the country's second largest listed company had made.
Telecom reported a 4.5% fall in its bottom line full year net profit to $380 million, with revenue down 6.5% to $5.27 billion.
Alcatel-Lucent coughs up
The result included a $27 million in payments from "various resolutions and settlements with a supplier" - roughly matching Telecom's XT compensation payouts - from an un-named supplier, widely assumed to be mobile network partner Alcatel-Lucent.
Free cash flow increases for first time since 2006
CFO Russ Houlden said that free cash flow had increased (to $600 million) for the first time since "regulatory shock" hit in 2006.
The turnaround was the result of betta ebitda at Gen-i, Telecom Retail and AAPT, plus cap-ex comming off its 2009 peak, the CFO said.
"Telecom has halted the significant earnings decline of the previous two years and achieved notable improvements in the trajectory of each of its businesses," Telecom chief executive Paul Reynolds said.
The fall in revenue mainly reflected continued competitive and price pressure in the legacy fixed line businesses, Telecom said.
"Chorus, Gen-i and AAPT have each delivered ebitda growth for the year, and the turnaround in the Retail business is on track for FY11," Dr Reynolds said today.
A unchanged fourth quarter dividend of 6c per share is to be paid.
For the three months to June net earnings fell to $42 million from $78 million a year earlier.
Telecom was plagued by outages to its XT network during the period.
Telecom shares (NZX: TEL) were down 1.43% to $2.07 in early trading.
