Telecom gets underway on plan for long term health and growth

Telecom New Zealand today reported net earnings of $537 million for the nine months to 31 March 2008, compared with net earnings of $693 million for the same period to 31 March 2007.

CEO Paul Reynolds said Telecom’s operations in New Zealand earnings for the quarter were slightly better than anticipated.

“The past quarter has brought encouraging signs of progress and improvement, particularly in the ICT and broadband areas, against the backdrop of the strategy we outlined three weeks ago.

“This strategy is focused on building customer preference in our mobile, ICT and broadband capabilities.

“In support of this strategy, investment for Telecom’s long-term health and growth is now well under way. Our capital spend in the nine months to March 2008 was 13% above the previous comparable period.

“This investment includes the roll-out of a world class broadband network, and a WCDMA mobile network, both of which will transform customer experience.”

Net earnings from continuing operations for the nine-month period were $537 million, compared with $594 million for the same period in 2007, a decrease of 9.6%.

“This decline is driven by an anticipated reduction in traditional services revenue, as a competitive market evolves rapidly and brings good news for New Zealand consumers. The quarter saw compelling pricing and other offers made in mobile and landline calling, and in broadband, too.

http://www.telecom-media.co.nz/releases_detail.asp?id=3546 for the full report.