Feeds

AAPT dents NZ parent’s profits

Staff cut by 25 per cent

Top three mobile application threats

Telecom New Zealand’s revenue-hemorrhaging Australian arm, AAPT, has managed to shed a quarter of its staff in the last six months, but still found ways to negatively impact its parent’s bottom line.

Despite selling the consumer division of the business to rival iiNet for $60m last year, adjusted operating revenues decreased by $83m to $375m in H1 FY11 as revenue declined in all categories.

The divestment of the consumer division, which predominantly affected calling, broadband and internet and resale revenues, resulted in $42m of the revenue decline. However falls in revenue were experienced across all divisions including Business Solutions and Wholesale.

Labour costs decreased by $11m to $59m when compared to the previous half due to the sale and a wider restructuring process.

At the time of the transaction it was reported that around 50 staff were to be transitioned to iiNet however at total 303 fulltime and contract staff have been eliminated in the half year period.

“We have successfully divested the Consumer business from AAPT and completed the sale process, and the Wholesale and Business divisions continue their strong sales performance,” said Paul Broad, CEO, AAPT.

“Our focus remains on creating a simpler, leaner business structure, including the imminent completion of our billing rationalisation programme,” he added.

AAPT’s EBITDA declined by $18m to $38m when comparing the previous corresponding period.

Overall TNZ reported a net profit after tax of NZ$158m, a decline of 35 per cent, while EBITDA fell 0.5 per cent to $868m for the period.

Meanwhile iiNet announced that it had made an undefined number of staff redundant this week a result of their aggressive growth by acquisition strategy. Industry speculation suggests the number is around 60.

A spokesman for the ISP said “as a result of our rapid growth and recent acquisitions, it is only natural that the staff structure is reviewed. Following this review, a small number of staff, mainly in head office functions, and across the iiNet group have been offered a redundancy.” ®

Application security programs and practises

More from The Register

next story
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Nadella: Apps must run on ALL WINDOWS – PCs, slabs and mobes
Phone egg, meet desktop chicken - your mother
White? Male? You work in tech? Let us guess ... Twitter? We KNEW it!
Grim diversity numbers dumped alongside Facebook earnings
Microsoft: We're making ONE TRUE WINDOWS to rule us all
Enterprise, Windows still power firm's shaky money-maker
HP, Microsoft prove it again: Big Business doesn't create jobs
SMEs get lip service - what they need is dinner at the Club
ITC: Seagate and LSI can infringe Realtek patents because Realtek isn't in the US
Land of the (get off scot) free, when it's a foreign owner
Dude, you're getting a Dell – with BITCOIN: IT giant slurps cryptocash
1. Buy PC with Bitcoin. 2. Mine more coins. 3. Goto step 1
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
prev story

Whitepapers

Top three mobile application threats
Prevent sensitive data leakage over insecure channels or stolen mobile devices.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
Application security programs and practises
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
The Essential Guide to IT Transformation
ServiceNow discusses three IT transformations that can help CIO's automate IT services to transform IT and the enterprise.