Telecom’s quarterly profits drop due to big spending, but six-month income is up

4 Feb 2005

Telecom New Zealand has posted net income of NZD198 million (USD141 million) for the three months ended 31 December, a drop of 2.5% over the same period last year. However, profits for its fiscal H1 were NZD391 million, up from NZD365 million year-on-year. The company attributed its Q2 profit slip to its increased spending in its efforts to sign up more mobile and internet subscribers. Operating revenues were up 3.9% in the quarter, and Telecom also managed to gain a net 96,000 wireless subscribers in the three months, compared to rival Vodafone’s 74,000.

New Zealand, Spark