Price cuts hurt Vodafone profits

15 Aug 2006

Vodafone New Zealand has reported a 16.5% fall in annual net profits on the back of a decrease in mobile call charges. The firm had profits of NZD152 million (USD96.4 million) in its fiscal year to the end of March, down from NZD182 million in its last financial year. Revenues rose 8.5% to NZD1.3 billion. Meanwhile, Dow Jones is reporting that Vodafone’s main competitor, Telecom New Zealand, has failed to lower fixed-to-mobile tariffs despite having signed an agreement under which Vodafone has reduced its mobile termination rates. Vodafone is the market leader in New Zealand’s cellular sector, with 2.1 million subscribers and a 55% share of the market at the end of June; Telecom claims the remainder.

New Zealand, Vodafone New Zealand