Vodafone NZ profit slumps

Vodafone New Zealand, the country's biggest mobile phone network operator, reported a 32 per cent decline in profit in the year to March 31, and made its first dividend payment in two years.

The Auckland-based subsidiary of global phone company Vodafone Group made $121.6 million in the last financial year, down from $177.7 million a year earlier, according to financial statements lodged with the Companies Office.

That's the first decline in net profit since 2006, when its surplus fell 17 per cent to $151.7 million.

Even though profit fell, the company paid a dividend of $47 million, or 30 cents a share. It last paid a dividend in 2008 financial year, when it paid $631 million to its parent.

Revenue was flat at $1.61 billion in the year ended March compared to $1.62 billion a year earlier, while the company's costs rose to $1.14 billion from $1.12 billion in 2009.

Vodafone has started off the year on a slightly weaker note, losing 25,000 customers in the three months ended June 30, according to its parent's quarterly report.

That leaves the phone company with 2.48 million customers in New Zealand. The company's expansion of its 3G network and increased capacity to meet network growth boosted the value of its construction in progress to $283 million from $235.4 million a year earlier.

It's approved $30.3 million of capital expenditure this year, down from $51.1 million in 2009. This work has yet to be contracted.

Vodafone faces higher costs this year after the Commerce Commission decided to recommend regulation of the fees firms charge each other for ending a call on their own network.