Telecom New Zealand Shows Strong Results in Q3 2005
Posted on 4-Nov-2005 09:30
| Filed under: News
Telecom New Zealand has released financial information about its performance in the first quarter for the financial period 2005-2006.
The operator reported net earnings after tax of NZ$199 million to 30 September 2005, an increase of 3.1% on adjusted earnings for the same period in 2004. The adjustment reflects the NZ$10 million abnormal gain on the sale of Telecom’s retail stores which was reported in the first quarter of 2004.
Earnings per share (EPS) of 10.2 cents for Q1 2005-2006, increased 2% compared on the adjusted EPS of 10.0 cents for Q1 2004-2005.
Telecom chief executive Theresa Gattung said the result for the first quarter to 30 September 2005 was pleasing and showed that both broadband and mobile services were continuing to grow strongly in each quarter.
“Broadband, mobile, Directories and IT Services all made solid contributions to this result in the September quarter,” Ms Gattung said.
“In mobile we’re seeing a continuation of the growth that we’ve achieved in the last three quarters. Our customers are enjoying the benefits of the speeds and applications available on our 3G (EVDO) network and with the roll out of EVDO in every main town and city in New Zealand by Christmas 2005, around 80% of New Zealanders will be able to experience the benefit of Mobile Broadband data speeds.
"We’ll have a number of new 3G handsets in the market before Christmas which will create further demand for our range of T3G services.
Mobile revenue is derived from voice and data services on Telecom’s 027 network (CDMA) and 025 (TDMA) networks as well as T3G services, a set of offerings based on CDMA technologies, including 1xRTT and 1x EV-DO.
Total mobile revenues increased 13.3% to NZ$188 million. Of this total voice revenue was NZ$131 million, an increase of 4.8%. Data revenue in the same period increased 72.7% to NZ$38 million.
Total mobile connections at 30 September 2005 were 1,673,000, an increase of 22.4% (306,000) over the 12 months from 30 September 2004, while Net mobile connections for the quarter ended 30 September 2005 were 72,000, an increase of 4.5% from 30 June 2005.
Total ARPUs (average revenue per user – monthly) including interconnection were NZ$47.2.
Telecom says mobile data and revenue growth is being driven by services such as Push2Talk, photo and video messaging, Song ID, caller tunes and ring tones.
CDMA connections now accounts for 75% of the customer base, representing 95% of the cellular revenue in the first quarter.