Telecom revenue down, but some improvement seen

Reynolds points to earnings growth at Gen-i and Chorus

Telecom reported a 4.5 percent fall in its bottom line full year net profit to $380 million, with revenue down 6.5 percent to $5.27 billion. The company highlighted its earnings before interest, taxation, depreciation and amortisation (ebitda) for the year to June which edged down 0.2 percent on the previous financial year to $1.76b. "Telecom has halted the significant earnings decline of the previous two years and achieved notable improvements in the trajectory of each of its businesses," Telecom chief executive Paul Reynolds said. The fall in revenue mainly reflected continued competitive and price pressure in the legacy fixed line businesses, Telecom said. "Chorus, Gen-i and AAPT have each delivered ebitda growth for the year, and the turnaround in the Retail business is on track for FY11," Dr Reynolds said today. A unchanged fourth quarter dividend of 6c per share is to be paid. For the three months to June net earnings fell to $42m from $78m a year earlier. Telecom was plagued by outages to its XT network during the period.

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