Telecom’s 3Q profit down

7 May 2010

New Zealand’s Telecom Corp has reported a sharp drop in its third-quarter net profit to NZD97 million (USD70.4 million), down 39% compared to the same period in 2009. The fall came as the company faced a raft of challenges, but full-year earnings guidance has been maintained, chief executive Paul Reynolds said. ‘This result has been achieved in a very challenging operating environment, including increased competition, the continued impact of the economic slowdown, further regulatory interventions and issues with our XT (mobile) network.’ The company underlined a 1.9% fall in adjusted earnings before interest, taxation, depreciation and amortisation (EBITDA) to NZD1.34 billion for the nine months to the end of March. But for the three months to the end of March, the results showed a 10.1% fall in revenue to NZD1.27 billion, with adjusted EBITDA for the quarter down 2.9% at NZD464 million.

New Zealand, Spark New Zealand Group