Feeds

TNZ braves the demerger with strong profits

While Stephen Fry gets throttles

The essential guide to IT transformation

The freshly de-merged Telecom New Zealand has posted a net profit of $NZ1 billion after what the CEO described as the “most complex corporate transaction in recent New Zealand history.”

Adjusted profits rose 52 per cent to $NZ240 million with earnings from continuing operations coming in at $NZ129 million. The carrier demerged its infrastructure unit in November 2011, impacting the results.

"Due to the demerger timing and the associated accounting impact, year-on-year financial comparisons are a complication," said Telecom NZ CEO Paul Reynolds. “The demerger was probably the most and a world’s first for a telecommunications company. I am pleased it has helped deliver real value for customers and shareholders.”

He added that the simplification of the business had delivered both improvement to customer satisfaction and reduction in costs.

“Customer satisfaction has improved in New Zealand, and the focus on simplicity and efficiency means that costs have declined faster than revenues, enabling Telecom to maintain flat EBITDA for its continuing operations,” he said.

But one customer, Stephen Fry, who is in New Zealand working on the Hobbit took to the Twiitersphere this week to vent his anger with the carrier. Fry tweeted that New Zealand's broadband is probably the worst he'd encountered. A spokeswoman for Telecom said that the problem had been a 'misunderstanding' and that Fry had blown the data cap on the residential broadband plan at the house where he is staying and his service was throttled.

“Telecom has since spoken to the broadband customer and they have now been put on a plan better suited to their needs,” the carrier said. Fry later tweeted that Telecom had been 'quick and polite' in fixing his problem adding “I wonder if everyone who complains gets this attention.”

Telecom NZ broadband revenues were up 5% during the half, through a combination of a 7,000 increase in connections during the half and a 2 percent increase in ARPU (average revenue per user). ®

Boost IT visibility and business value

More from The Register

next story
6 Obvious Reasons Why Facebook Will Ban This Article (Thank God)
Clampdown on clickbait ... and El Reg is OK with this
No, thank you. I will not code for the Caliphate
Some assignments, even the Bongster decline must
Fast And Furious 6 cammer thrown in slammer for nearly three years
Man jailed for dodgy cinema recording of Hollywood movie
Caught red-handed: UK cops, PCSOs, specials behaving badly… on social media
No Mr Fuzz, don't ask a crime victim to be your pal on Facebook
Barnes & Noble: Swallow a Samsung Nook tablet, please ... pretty please
Novelslab finally on sale with ($199 - $20) price tag
Ballmer leaves Microsoft board to spend more time with his b-balls
From Clippy to Clippers: Hi, I see you're running an NBA team now ...
Video of US journalist 'beheading' pulled from social media
Yanked footage featured British-accented attacker and US journo James Foley
Assange™: Hey world, I'M STILL HERE, ignore that Snowden guy
Press conference: ME ME ME ME ME ME ME (cont'd pg 94)
Call of Duty daddy considers launching own movie studio
Activision Blizzard might like quality control of a CoD film
prev story

Whitepapers

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.
Endpoint data privacy in the cloud is easier than you think
Innovations in encryption and storage resolve issues of data privacy and key requirements for companies to look for in a solution.
Scale data protection with your virtual environment
To scale at the rate of virtualization growth, data protection solutions need to adopt new capabilities and simplify current features.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?