Telecom result picked to be nearly 10pc higher

By PAUL PANCKHURST

After a 6 per cent fall in share price over October, market heavyweight Telecom is back in the spotlight this week with a first quarter earnings result.

Analysts predict a rise of nearly 10 per cent in net profit after tax compared with the same period last year.

The result will be out at 8.30am on Wednesday.

The consensus of forecasts from nine analysts is of a net profit of $160 million - compared with last year's $146 million. However, the range of estimates is wide.

Goldman Sachs JBWere is the most bullish, with a forecast of $170 million.

The result is expected to be on slightly reduced revenue of $1.29 billion ($1.3 billion). Forecasts for earnings before interest, tax, depreciation and amortisation range from $543 million to $560 million. The consensus is $549 million.

Telecom's share price slipped from $5.16 at the start of last month to $4.84 at the close of the sharemarket on Friday, with brokers reporting overseas selling.

News service Bloomberg reports the telco will no longer split out earnings before interest and tax for separate business units but will give separate figures for New Zealand and Australia.

"It reflects the way we are running the business," said Telecom investor relations analyst Geoff Zane.

The integration of business units meant "it was getting too difficult to report all the internal transations".