Telstra NZ records small increase

The New Zealand arm of Australian phone giant Telstra has recorded 3.5 percent revenue growth, but only a small increase at the bottom line.

TelstraClear boosted revenue to $716 million from $692 million, on increased sales to businesses and uptake of its resold Telecom home line services.

Earnings before interest and tax were flat, and spokesman Matthew Bolland said this was because of increased investment in the backbone network and the costs associated with new acquisition Sytec.

Last year, TelstraClear reported its maiden profit of $2.7 million. But Bolland said he could not disclose a profit as parent Telstra had not disclosed it.

"We haven't gone backwards (from last year)," he said.

"It's been a tough year, we've been improving our capabilities and it continues to be a tough market. So given that we've been pleased we could increase services and still push ahead (financially)."

Bolland said during the year the company had upgraded its network in Wellington and Christchurch to prepare for digital television services, about which an announcement was "imminent".

Bolland said he was unable to comment on whether TelstraClear had reached a decision about building a mobile phone network.

Big corporate wins during the year include Inland Revenue, Tower and Fairfax.

- NZPA