Telecom posts earnings of $1.157 billion
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Nick Olson, CFO of Telecom, confirmed that equipment for a 4G/ LTE trial later this year was included in the $392 million continuing CAPEX figure in the report.
But there has been no spending for a nationwide roll out for the service, which puts doubts on whether the service will be available nationally next year.
At Telecom's half year report in February, then CEO Paul Reynolds said a major focus for the coming months would be cutting costs at the telco - including reducing staff numbers.
Telecom says this year its headcount is 5 percent less than the previous year. Quin declined to comment on labour forecasts for 2013.
Telecom shares opened today at $2.755, it has dropped 8.53 percent and is now trading at $2.520.
Telecom reported a net profit of $1.157 billion dollars in an announcement to the New Zealand Stock Exchange this morning.
Total revenues were $4.5 billion, 9 percent less than the figure posted last year, but Telecom says the results include five months of trading before its demerger from Chorus, which makes year on year comparisons “complex”.
“When these declines are ring-fenced the New Zealand business revenues fell around 2 percent for the year. Core business such as domestic fixed line access, calling and data continue to decline and are partially offset by growth in mobile and broadband,” says Chris Quin, acting Telecom CEO.
“In addition, the decline in revenue has been offset by reductions in operating expenses, which fell by more than 12 percent compared to the prior year.”
(photo credit: Paul Brislen)
According to the results Telecom has cut expenses by around $500 million from the previous year.
Following the shutting down of the CDMA network in July, Quin says Telecom’s customer base “reset” to 1.6 million. At its half-year report in February Telecom said there were 600,000 CDMA customers, Quin says the average revenue per connection per month for these connections was around $1.50.
Around 63,000 new customers have moved onto Telecom’s XT network in the last year, he adds.
According to Telecom its broadband marketshare is now 50 percent, down 3 percent from the previous year. Quin says broadband revenues rose 4 percent to $333 million and 9000 new connections were made this year, an increase of 2000 connections since the half year report in February.
Quin’s own division, Gen-i, secured or extended contracts worth $734 million with a services margin of 9 percent.
"This year has been mainly focused on improving the quality of the contracts. This year saw a 5 percent profitability growth, 1 percent revenue growth," says Quin.
Telecom New Zealand 2012 financial year results:
|REPORTED FY12||ADJUSTED FY12||ADJUSTED H2 FY12|
|EBITDA - continuing||$1.079 billion||$1.048 billion||$560 million|
|EBITDA - discontinued||$1.103 billion||$321 million||0|
|Total EBITDA||$2,182 billion||$1,369 billion||$560 million|
|Net earnings||$1,157 billion||$422 million||$182 million|
|Total CapEx||$528 million||$528 million||$203 million|
Adjusted EBITDA $1.8 billion
Adjusted free cash flow $887 million
CapEx $914 million
Posted by Anonymous at 7:01:35 on August 28, 2012
Posted by Capitalist_Pig at 9:24:36 on August 28, 2012
$13M for an outgoing CEO. DISGRACEFUL and UNBELIEVABLE!
Posted by Anonymous at 8:26:02 on August 28, 2012
Paul pretty much created the Telecom it is today. Singlehandedly? No. But a leading catalyst and a leader any troubled corporate would benefit from.
And yes, that's the money that the people of his calibre and positions earn. Get over it.
Posted by Anonymous at 9:29:58 on August 28, 2012
One needs that kind of "calibre" to operate in a tiny monopolistic market. Well with all that intelligence it must remind you of your own pond eh matey?
Posted by Anonymous at 14:34:06 on August 28, 2012
Posted by DAVE LANE at 19:48:35 on August 28, 2012
Posted by Anonymous at 8:08:40 on August 29, 2012
Posted by Anonymous at 20:06:23 on August 28, 2012
For all these bitter naysayers - it's a competitive market, if you don't like it go and shop elsewhere.
Posted by Telco partner at 11:56:59 on August 27, 2012
It is the public of NZ who are paying for this
Posted by Anonymous at 10:18:57 on August 24, 2012