Telecom annual profit approaches $1 billion

Telco boasts 205,000 broadband customers - but it's still far below its wholesale target

Telecom's profit is up more than 20% this year to hit $916 million for the year to June 30 and will pay its shareholders a special dividend of $195 million, or 10 cents per share.

That's on top of its ordinary dividend, also 10 cents per share, for the last quarter of the financial year. All told, Telecom will pay out $390 million in special dividends in the next year.

Telecom puts the gains down to three key areas: broadband, mobile and IT services.

In broadband the company has connected more than 205,000 residential customers. Telecom set itself a target of 250,000 residential broadband customers by the end of the year, and looks to be well on track to meet that commitment. However the company's other goal of providing 30% of customers from its wholesale division looks set to fail, with fewer than 15% of those customers coming from the wholesale side of the business.

The mobile side of the business is far more healthy, however, with Telecom outstripping Vodafone again in new connections.

Telecom's total connections at the end of June were 1.6 million, up by 18% on the previous year. Telecom has also written off all of its 025 network, leaving the way clear for it to decommission the old TDMA network.

Average revenue per mobile user increased slightly to $50.60 per month.


  • Total data revenue increased 14% to $588 million
  • DSL broadband revenue increased 61.7% to $152 million
  • Wholesale now accounts for 14% of the total broadband base.


  • Total mobile revenues increased 15.8% to $709 million
  • Voice revenue increased 4.9% to $513 million
  • Data revenue was $112 million, an increase of 119.6%
  • Total connections at 30 June 2005 were 1,601,000 – an increase of 18.4% year on year (June 2004)
  • Net mobile connections for the quarter ended 30 June 2005 were 74,000
  • Total ARPU (average revenue per user - monthly) including interconnection for the year grew 1.6% to $50.60

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