Technology news and Jobs 
Telecommunications Telecom NZ writes down AAPT to $A270 million
Telecommunications Telecom NZ writes down AAPT to $A270 million | Telecom NZ writes down AAPT to $A270 million |
|
| by Stuart Corner | |
| Friday, 04 August 2006 | |
  
Absent the write down of the Australian operations full year profit was $NZ820 million compared with $NZ857 million for the 2005 June year. The full year write-down of the Australian operation took place in two stages: one of $NZ897 million recorded at 31 December 2005 and a further $NZ404 million ($NZ394 million after tax) at 30 June 2006. The carrying value of the Australian operations now stands at just $A270 million. This, Telecom says, "reflects the challenging operating conditions in the Australian market with retail prices declining and wholesale prices rising." Telecom NZ's Australian business comprises AAPT's operations in the business, corporate, government and wholesale markets, and Gen-i Australia. Total revenue was $A638 million, a decrease of 4.6 percent for the year. Operating expenses increased 4.1 percent to $A477 million. The contribution of the Australian business (revenue less directly attributable costs) was $A161 million, a decrease of 23.7 percent. There was good news on one front: business customers at 30 June 2006 had grown to 20,000 an increase of 116 percent compared with the previous year. Telecom said that growth was primarily in the mass area as a result of recent marketing, with the managed customers numbers remaining stable compared to the previous year. Telecom CEO, Theresa Gattung said the group’s New Zealand operations had performed solidly in the June 2006 quarter, with EBITDA increasing 4.1 percent, and 2.7 percent for the year. “Mobile, broadband, directories and IT services all performed strongly while it was pleasing to see stability in access lines and local service revenue and a moderation in expense growth,” Gattung said. She contrasted this with the EBITDA decline in Australia, but said that the company continued to invest in a bid to turn around the prospects of its Australian arm. “We are responding to the challenges in the Australian operations with significant investment in sales, customer services and IT capabilities to improve customer growth and retention.” New Zealand operating revenue was $NZ4,511 million, an increase of 3.9 percent for the 12 month period and for the June quarter the increase was 1.7 percent to $NZ1,125 million. Operating revenue was boosted by growth in mobile, data, broadband and internet, directories which were partially offset by declines in local service, calling, and interconnection. EBITDA for the 12 months increased 2.7 percent to $NZ2,225 million and 4.1 percent to $NZ559 million for the June quarter. |
Tags
| < Next story in category | Previous story in the category > |
|---|
