Telecom NZ FY2010/11 revenues drop 3.2%

19 Aug 2011

Telecom New Zealand has announced operating revenues of NZD5.10 billion (USD4.24 billion) for the twelve months ended 30 June 2011. This figure represents a 3.2% drop from the NZD5.27 billion recorded a year earlier. EBITDA increased 2.1% from NZD1.76 million to NZD1.80 billion year-on-year, whilst net earnings rose marginally to NZD388 million, an increase of 1.6% from NZD382 million a year earlier. CAPEX for the twelve-month period dropped 22.7%, from NZD1.18 billion to NZD914 million.

Mobile revenues decreased slightly by 0.1% from NZD826 million to NZD825 million year-on-year, while data revenues slipped from NZD638 million to NZD592 million, a drop of 7.2% y-o-y. Broadband and internet revenues dropped from NZD594 at NZD581 million. Local fixed telephony revenue fell 4.4% from NZD1.03 billion to NZD981 million. In operational terms, Telecom ended the fiscal year with 1.799 million fixed lines in service, whilst the number of broadband connections stood at 591,000. At the same date Telecom reported a total wireless subscriber base of 2.097 million, of which 1.183 million were subscribed to its ‘XT’ branded W-CDMA network.

New Zealand Telecom CEO Paul Reynolds commented: ‘These results represent a strong operating performance in an increasingly competitive environment … At the start of 2011, Telecom updated its strategy to reflect New Zealand’s challenging and competitive operating environment, create a leaner and more effective operating model, prepare for a fibre future, and ensure an intense focus on free cash flow through management of capital and operating costs. The result of this strategy, known as Vision 2013, is that we have delivered a wide range of positive outcomes, underpinned by the simplified and more effective operating model. Not only has simplification delivered cost savings, it has also improved customer satisfaction across the board through improvements to processes, rationalisation of platforms and reduction in errors and rework’.

New Zealand, Spark, Spark New Zealand Group