Telecom New Zealand (Telecom NZ) has released its financial results for the year ended 30 June 2009, reporting a 32% year-on-year drop in net income, down from NZD713 million (USD481 million) in FY07/08 to NZD483million a year later. This decline can largely be attributed to a 20% increase in depreciation and amortisation expenses, up to NZD917 million at the end of June. Earnings before interest, taxes, depreciation and amortisation (EBITDA) fell by 7% year-on-year, down to NZD1.77 billion. Revenues fell by NZD86 million over the course of the year to NZD5.59 billion, while operating expenses grew marginally to NZD3.81 billion, up from NZD3.78 billion at the end of June 2008.
Telecom launched its W-CDMA-based ‘XT’ network to over 97% of households nationwide on 29 May 2009. The network attracted 165,000 subscribers in its first two months of operation, although there was a decline of 26,000 net subscribers to Telecom’s overall mobile networks.