One-off expenses, including shipping call centre offshore, are blamed. PLUS: Shares rise at parent company Telstra as profit plunges, but the telco finalises an $A11 billion National Broadband Network deal with the government.
TelstraClear's earnings in the six months to December 30 were hurt by a 5.9 percent rise in expenses, according to the results of parent Telstra Corp.
Excluding intercompany revenue, TelstraClear posted earnings before interest, tax, depreciation and amortisation of $NZ51 million in the six months to December 31, down from $NZ61 million in the same period a year before.
It reported a loss of $NZ19m at the earnings before interest and tax level, more than double the loss of $NZ9m a year earlier.
Total income of $NZ340m, was up 1.8 percent from the $NZ334m last year but operating expenses, excluding depreciation and amortisation, rose to $NZ289m from $NZ273m.
Telstra said the rise in operating expenses was due to increased labour costs due to one-off project costs associated with outsourcing a number of call centre activities which will provide financial benefits for future periods.
It also cited increased sales resources and increased promotion and advertising expenses. These were partially offset by a reduction in bad and doubtful debts of 7 percent as a result of tighter financial controls.
The company spent $NZ36m on capital expenditure in the period, down 10 percent on a year earlier.
Commenting on revenue, the company said a decline in business revenue in previous periods was arrested, while consumer revenue grew by 1 percent.
NBN deal boosts Telstra
Parent company Telstra reported a 36% slump in half-year profit to $A1.19 billion this morning, a result that was below analysts expectations.
However, the company's shares (ASX: TLS) were up 2 cents to $A2.91 in early trading, on the back of news that the telco has finally struck a deal with the government over the National Broadband Network (NBN).
The government will pay $A11 billion to lease Telstra infrastructure to the NBN.
In return - besides bagging the cash - Telstra will decommission its copper network, and migrate its customers to the fibre-based NBN.
The NBN is overseen by the state-controlled NBNCo, and will be a wholesale-only, open access network.
The government saw decommissioning Telstra's copper - as was agreed today - as a crucial element in "reducing NBNCo's revenue risk".
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