Telecom New Zealand reports 23.8% drop in Q2 net earnings

Telecom New Zealand has reported adjusted net earnings of NZD80 million (USD55.84 million) for the three months ended 31 December 2009, down from NZD105 million in the same period a year earlier. Revenues for the second quarter of the 2009/10 financial year declined by 6.5% year-on-year, down from NZD1.4 billion in 2Q08 to NZD1.32 billion a year later. Operating expenses for the period totalled NZD890 million, down 10% year-on-year from NZD989 million. Paul Reynolds, Telecom CEO, said: ‘Telecom’s delivery of the turnaround remains on track. The quarter saw progress on a range of fronts, including the addition of 60,000 customers in mobile, Telecom Retail attracting 64% of broadband connection growth, reduced fixed line churn and the success of our cost out programme. The XT mobile network nevertheless continued to deliver growth during the quarter, with 467,000 connections established by 31 December 2009. 57% of those connections are post-paid, and 47% are new acquisitions. In addition, the quarter saw average data revenues per user increase 19% and roaming revenues increase 111% when compared to Q2 in the previous financial year.’ In total, Telecom’s mobile operation claimed 2.35 million cellular subscribers.