Telecom announces first profit in five years

9 May 2003

New Zealand’s largest phone company, Telecom Corp [NYSE:NZT], has announced net earnings for the nine months ending March 2003 of NZD498 million, an increase of 3.8% on the same period last year. In addition to cutting costs by 14%, raising charges and increasing marketing activity to attract more customers, the company said it experienced a financially strong Q3 with earnings increasing by 17.3% to NZD197 million. EBITDA was NZD1,698 million, up 1.4% year-on-year. As a result of the positive performance, analysts have revised upwards their estimates for annual net profit from NZD682 million to NZD700 million.

New Zealand