Gen-i earnings up, overall Telecom result down for Q1

IT services division a shining star in first-quarter results

Gen-i has contributed significantly to Telecom’s first-quarter results, released today.

For the quarter, which ran from July to September, Gen-i reported pre-tax earnings of $54 million, 38 per cent up on last year.

Telecom CEO Paul Reynolds said, when discussing Gen-i at today's results presentation that "the focus is on IT services - it's all about the cloud."

Gen-i will offer "clear and simplified product sets that deliver the flexibility customers want - we're expecting more of that from Gen-i in the quarters ahead."

With Gen-i having a significant presence in government departments and large companies, there is plenty of oppurtunity to upsell, Reynolds said.

"There's a focus on increasing revenue from clients we have."

In Telecom’s results announcement media release, Gen-i CEO Chris Quin is quoted as saying: “EBITDA growth was driven by reduced costs and strong IT services, and mobile margin growth.”

Gen- i is targeting growth in mobile, cloud services and the Australian and trans-Tasman markets, Quin says.

Overall, Telecom recorded a 49 per cent decline in net earnings, down to $83 million from $163 million, for the quarter. Tax accounted for much of the decline, with a $43 million tax credit carried over from last year, and another $23 million being paid due to changes in tax law since last year's first quarter.

Pre-tax revenue was $1.316 billion, down 2.9 per cent on last year.

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