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Business Description: Telecom Corporation of New Zealand Limited (TEL) is a NZ telecommunications service provider, offering a range of services and products to consumers and businesses. The Company operates the following business units: Telecom Retail, Gen-I, AAPT and Telecom Wholesale & International.
Strategy Analysis: TEL is well-positioned to respond to changes in the industry. After de-merging its wholesale division, greater focus will be placed in its mobile division. Despite high penetration in handsets in the NZ mobile market, we expect smartphones to be the main driver for revenue growth as consumers upgrade their handsets. We expect postpaid ARPU to grow as smartphones continue to penetrate its postpaid subscriber base, leading to data revenue growth. The fixed broadband market continues to grow well in New Zealand. We do not see wireless broadband to be a direct substitute for fixed broadband given technological differences.
Telecom Corporation of New Zealand reported NPAT down 83.9% to NZ$162.0m for the half-year ended 31 December 2012. Revenues from ordinary activities were NZ$2.14bn, down 9.5% from the same period last year. Basic and Diluted EPS was 9.0 NZ cents compared to 52.0 NZ cents last year. Net operating cash flow was NZ$424.0m compared to NZ$504.0m last year. The interim dividend declared was 8.0 NZ cents compared with 9.0 NZ cents last year. Comparisons with previous periods are complicated by the demerger of Chorus which took effect from December 2011. Reporting on continuing operations, after adjusting for non-recurring or unusual items, provides the most meaningful view of the company's performance as a separate company. On this basis, adjusted EBITDA was 3.7% higher, as reduced operating costs (principally due to lower labour costs and changes in Chorus trading arrangements) more than offset a decline in operating revenue.
The Age 25/05/2013 |
In the mid-1960s, when Australia's trade minister Sir John McEwen was urging Holden and Ford to seek export markets in Asia, the leader of one of Asia's poorest countries decided his country needed a car industry.
The Age 25/05/2013 |
Debts to tradespeople and suppliers by collapsed builder National Buildplan Group have blown out to $58 million but administrators say they are likely to recoup only cents in the dollar.
The Age 25/05/2013 |
There's a simple message in what appeared to be conflicting statements from the Federal Reserve, its chairman, Ben Bernanke, and an assortment of other Fed heavies this week about the timing of a move to re-tighten monetary policy.
The Age 25/05/2013 |
Investors are contemplating a future without support from one of the biggest drivers of the global economy in recent years - the US Federal Reserve.
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