Telecompaper

Telecom New Zealand saw its net earnings rise almost 10 percent in the first quarter ended 30 September. Net earnings totalled NZD 163 million, up 9 percent from NZD 149 million a year earlier, due in part to a NZD 43 million one-off effect from changes in tax law. EBITDA declined 4.1 percent to NZD 447 million but was in line with guidance. Revenue for the quarter fell 6.5 percent to NZD 1.36 billion, while operating expenses fell faster, to NZD 909 million, a 7.7% decrease on the equivalent quarter last year. During the first quarter, Telecom saw a net increase of 64,000 mobile customers, with 242,000 customers on its new XT network at the end of its first full quarter of operation. Fixed broadband growth has remained stable, at around 11 percent, with total connections on Telecom's network reaching 899,000 during the quarter. Telecom retail attracted 50 percent of the new customers, and its share of the market has remained at 57 percent. The company is maintaining its guidance for adjusted EBITDA in FY 2010 to be -1 to +2 percent and adjusted group earnings guidance has increased from NZD 400 million to 440 million.