A massive write-down in the value of its Australian subsidiary has hit Telecom New Zealand’s earnings for its financial year to the end of June. New Zealand’s largest telco reported a net loss of NZD435 million for 2005/06, compared with a net profit of NZD967 million the year before. The NZD1.29 billion write-down of AAPT was taken in the face of increasing competition in the Australian market, with retail prices falling and wholesale prices rising. Telecom reported revenues of NZD5.76 billion for the year to 30 June 2006, up 1.9% on last year. It did, however, say there was a solid performance in its domestic businesses, with operating revenues up 3.9% to NZD4.51 billion and EBITDA up 2.7% to NZD2.23 billion. Telecom had 1.41 million local lines and 1.7 million cellular subscribers in New Zealand at the end of June.