Clear turns $30m loss into profit

By RICHARD BRADDELL utilities writer

Clear Communications is set to turn a $30 million loss last year into a double-digit profit for the March 2001 year.

Chief executive Peter Kaliaropoulos said the accounts had yet to be signed off so he could not reveal the exact profit.

"When we get all the auditors signed off, it will be a very pleasant number, a double-digit number," he said.

After static growth in the preceding two years, Mr Kaliaropoulos said Clear's revenue had grown 14 per cent, with strong performances across all market segments.

Data revenue was up 26 per cent.

But while Clear was aiming for 15 to 20 per cent growth in the current and future years, he said it was disturbing that the New Zealand market overall was not growing.

Smaller operators, some of whom had supply contracts with Clear, were being forced out as the industry consolidated around facilities-based operators, and that was costing Clear some revenue.

This year, Mr Kaliaropoulos also expected a small decline in capital expenditure from last year's $235 million, which included $35 million for radio spectrum.

With shareholder British Telecom focused on its own financial issues, he expected tough negotiations for finance, and current year capital expenditure would probably come in between $150 million and $200 million, "depending on how fast we grow."

Although Clear did not plan to abandon the residential market, Mr Kaliaropoulos said it would focus on commercial enterprises, with an emphasis on integrating voice, data and multimedia using internet protocol.

It has just appointed the former Ministry of Social Policy coordinator Neil Miranda as executive general manager networks.

Mr Miranda was responsible for the implementation of what was then one of the world's largest internet protocol-based telephone networks on behalf of the ministry and in conjunction with Clear and Cisco Systems.

He fills a gap created by the resignation before Christmas of Rhoda Holmes.

She took up a senior position at TelstraSaturn this year.