Telecom profits down 38% in third quarter
Telecom may sell its international wholesale voice business, chief executive Paul Reynolds said, while releasing a 38% fall in profits for the third quarter.
Telecom may sell its international wholesale voice business, chief executive Paul Reynolds said, while releasing a 38% fall in profits for the third quarter.
Profits for three months to the end of March fell from $159 million to $97 million.
Adjusted earnings for the nine months to March fell 1.9% to $1.36 billion.
The results were in line with guidance and Telecom has maintained its full year earnings forecasts.
“Telecom delivered a range of positive outcomes in the quarter, Dr Reynolds said, highlighting 128,000 growth in XT connections, and 7% mobile revenue growth in Gen-i.
“New Zealand’s broadband speeds are now measurably faster than Australia and Singapore, and our cost-out programme remains on track.”
"This result has been delivered in a very challenging operating environment, including increased competition, the continued impact of the economic slowdown, further regulatory interventions and issues with our XT network," he said.
"With the results of the independent review of XT now before us, our focus is on further improving the resilience of the network and translating that effort into further growth in customers," Dr Reynolds said.
A third quarter dividend of 6c per share has been declared, with no imputation credits.
Following a strategic review of Telecom’s international wholesale business, the company has separated it into its voice and data components.
“We are now considering strategic options for the voice component of this
business. Options being considered include merger, divestment or
retention,” Dr Reynolds said.
Wholesale and International reported EBITDA of $60m for the quarter, a
10.4% decrease on the equivalent quarter last year.
NBR staff
Fri, 07 May 2010
Fri, 07 May 2010
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Telecom profits down 38% in third quarter
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