First quarter profit recorded by Telecom

Q1 profit of $163m including $43m from gain tax law changes recorded by Telecom; Revenues fell 6.5%; 6cps dividend declared

6 November 2009
Telecom has reported a nine percent rise in first quarter profits, due to a gain in changes to tax laws.

For the quarter to September 30, the company made $163 million, including $43 million from tax issues. Revenues fell 6.5 percent to $1.36 billion.

CEO Paul Reynolds says the economic downturn has had only a modest impact on the company. He says Telecom saw a net increase of 65,000 mobile phone customers during the first quarter and has now 242,000 customers on its XT mobile network.

The company has made no changes to its earnings-before-tax guidance for the full year. Its forecast is for a one percent fall at worst and a two percent rise in the best case scenario, subject to potential economic risks.

A first quarter dividend of six cents per share has been declared, with no imputation credit.

Telecom's shares have risen six cents in early trading to $2.54.

© 2009 NZCity, NewsTalkZB