Telecom New Zealand has reported that its revenues for the last quarter of 2009 (second fiscal quarter) fell by 6.5% to NZ$1.3 billion (US$907 million), while net income dropped by -23.8% to NZ$80 million (US$55.84 million). Adjusted year to date EBITDA was NZ$872 million (US$608 million), a 1.4% decline on the first half of the previous financial year.
The quarter contained a Southern Cross dividend of NZ$9 million.
"Telecom's delivery of the turnaround remains on track, with EBITDA growth in the second quarter. 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," said Paul Reynolds, Telecom CEO.
"Full year earnings guidance of EBITDA growth between -1% and +2% remains in place, with EBITDA growth now expected to be in the lower half of that range, reflecting the impacts of the economic downturn and the 27 January 2010 XT mobile outage."
"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 postpaid, 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," he said.
"Following the major network outage in January, a strong focus for XT is to restore customer confidence. To that end we are undertaking a significant series of actions that will improve the resilience of the network."
Fixed broadband market growth slowed, but the total market has now passed the 1,000,000 connection mark. Telecom Retail attracted 64% of the new customers during the quarter and held its market share at 57%.
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