Telecom posts reduced half-year profit

1:30 PM

Telecom has posted a reduced profit of $300 million for the first half of its financial year.

That compares with $406 million for the previous corresponding period.

The drop has been attributed to the costs of expansion into the Australian market and falling revenues from Telecom's mobile network.

While the company saw the number of connections to its mobile services rise by 120,000, to more than 1.1 million, revenue from that sector dropped 1.1 per cent.

Internet revenues rose more than 15 per cent, and Telecom's Internet service provider Xtra had around 331,000 registered customers at the end of the period.

That is an increase of 34.6 per cent on the previous corresponding period.

The company will pay a dividend of five cents per share for the second quarter.

Telecom chairman Roderick Deane said the six months was a period of significant progress, including the successful completion of the AAPT takeover in Australia.

He said Telecom is committed to raising its performance in the short term, and improving earnings over the long term.

Telecom shares are trading 12 cents down at $5.20.

- IRN