TelstraClear doubles first-half loss

File photo

TelstraClear, the local subsidiary of Australian phone company Telstra Corporation, doubled its first-half loss on one-time costs to set up call centres in the Philippines.

The Auckland-based company made a loss of $19 million in the six months ended December 31 on an earnings before interest and tax basis, more than twice the loss of $9 million a year ago.

Revenue increased 1.8 per cent to $340 million, lagging behind a 5.9 per cent lift in operating costs to $289 million.

"An increase in labour costs were driven by one-off project costs associated with outsourcing a number of call centre activities which will provide financial benefits in future periods," the parent company said in its financial statements lodged with the ASX and NZX.

TelstraClear shifted about 120 call-centre jobs in Christchurch and Paraparaumu to Manila last year after it bucked the outsourcing trend in 2007 when it brought its IT support back in-house.

The phone company's EBITDA margin on sales shrank 3.3 per centage points to 15 per cent in the period.

Including intercompany transactions, the EBIT loss was $8 million, compared to a profit of $4 million a year ago.

Australian parent Telstra reported net profit fell 36 per cent to A$1.21 billion in the period.

TelstraClear's A$687 million of revenue amounted to just 5.5 per cent of the company's A$12.41 billion sales.

Telstra shares rose 0.3 per cent to $3.81 on the NZX.