New Zealand Telecom posts $269m net loss

11 Aug 2006
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New Zealand Telecom posted a wider-than-expected fiscal year net loss of NZ$435 million ($269 million), after a further write down in the value of its poorly performed Australian unit AAPT.

The carrier posted a net profit of NZ$967 million ($598 million) the previous fiscal year.

The nation's biggest fixed-line company said in a statement that results for the 12 months ended June 30 reflected a NZ$1.3 billion ($804 million) write down in the value of AAPT.

The AAPT writedown, which values the Australian unit at NZ$332 million ($205 million), dragged the carrier to a fourth quarter net loss of NZ$191 million ($118 million), compared with a net profit of NZ$281 million ($174 million) for the same quarter a year earlier.

On an adjusted basis, fiscal year profit was down 4% to NZ$820 million ($508 million), while fourth-quarter net profit was down 5% to NZ$203 million ($126 million).

The firm forecast a return to profit in the current fiscal year, projecting a net profit of between NZ$820 million ($508 million) and NZ$860 million ($5New Zealand Telecom posted a wider-than-expected fiscal year net loss of NZ$435 million ($269 million), after a further write down in the value of its poorly performed Australian unit AAPT.
The carrier posted a net profit of NZ$967 million ($598 million) the previous fiscal year.
The nation's biggest fixed-line company said in a statement that results for the 12 months ended June 30 reflected a NZ$1.3 billion ($804 million) write down in the value of AAPT.
The AAPT writedown, which values the Australian unit at NZ$332 million ($205 million), dragged the carrier to a fourth quarter net loss of NZ$191 million ($118 million), compared with a net profit of NZ$281 million ($174 million) for the same quarter a year earlier.
On an adjusted basis, fiscal year profit was down 4% to NZ$820 million ($508 million), while fourth-quarter net profit was down 5% to NZ$203 million ($126 million).
The firm forecast a return to profit in the current fiscal year, projecting a net profit of between NZ$820 million ($508 million) and NZ$860 million ($532 million).
The carrier meanwhile said it will increase its capital expenditure to NZ$800 million ($495 million) in the current fiscal year from NZ$751 million ($465 million) in fiscal 2006.
32 million).

The carrier meanwhile said it will increase its capital expenditure to NZ$800 million ($495 million) in the current fiscal year from NZ$751 million ($465 million) in fiscal 2006.

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