Telecom New Zealand sees revenues and profits fall

14 Feb 2011

Telecom New Zealand has posted revenues of NZD2.6 billion (USD2 billion) for the first half of 2010, down 3.3% year-on-year. Net income fell more sharply, by 35%, to NZD158 million on the back of increased tax and ongoing regulatory impacts. CEO Paul Reynolds said that the corporate and government sectors appeared healthy, but that the consumer market continued to lag. ‘The mobile market in New Zealand has only grown about 1%’, he told reporters. ‘Analysts had expected to grow by about 3%, so that could be an indication of some pressure at the consumer end.’ The executive added that the company remains on track to meet its full year guidance, and that full year CAPEX would be between NZD950 million and NZD1 billion, rather than above NZD1 billion as originally forecast.

New Zealand, Spark New Zealand Group