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Business Description: Telecom Corporation of New Zealand Limited (TEL) is the predominant NZ telecommunications service provider, offering a range of services and products to consumers and businesses. Telecom also carries voice and data traffic on the Southern Cross Cable and other cable and satellite systems. Telecom operates the following business units: Telecom Retail, Gen-I, Telecom Wholesale and AAPT-PowerTel.
Strategy Analysis: TEL is well-positioned to respond to changes in the industry. After demerging its wholesale division, greater focus will be placed in its mobile division. Despite high penetration in handsets in the NZ mobile market, we expect smartphones to be the main driver for revenue growth as consumers upgrade their handsets. We expect postpaid ARPU to grow as smartphones continue to penetrate its postpaid subscriber base, leading to data revenue growth. The fixed broadband market continues to grow well in New Zealand. We do not see wireless broadband to be a direct substitute for fixed broadband given technological differences.
Telecom Corporation of New Zealand reported NPAT down 56.8% to NZ$164m for the year ended 30 June 2011. Revenues from ordinary activities were NZ$5.12bn, down 2.8% from last year. Basic and Diluted EPS was 9 NZ cents compared to 20 NZ cents last year. Net operating cash flow was NZ$1.35bn compared to NZ$1.76bn last year. The final dividend declared was 7.5 NZ cents, taking the full year dividend to 20 NZ cents compared with 24 NZ cents last year. The company advised that it anticipates demerging Chorus in the FY12 financial year and therefore all financial guidance has been removed.
The Age 8/02/2012 | TEL AVIV. A Palestinian deal to form a unity government that includes Hamas has been condemned by the Israeli government as a decisive step away from the peace process.
The Age 8/02/2012 | A 3200-square-metre office-warehouse development in Laverton North has been leased and sold within a fortnight, fetching $2.7 million. Nathan Bingham, Colliers International's manager in charge, Melbourne west, negotiated both deals on 70 William Angliss Drive. The new tenant, RMD Industries, which has operated locally for more than 50 years, took out a lease with passing rent of $220,000. The subsequent sale reflected a yield of 8.15 per cent. "It was the combination of the quality of the ...
The Age 8/02/2012 | FOSTER'S has lost the rights to Asahi as the Japanese brewer of the popular imported beer mounts a fresh push into the Australian market. From April 2, Asahi Group Tokyo will import and market its flagship Asahi Super Dry through a new premium beverages division at its local subsidiary, Independent Distillers.
Sydney Morning Herald 8/02/2012 | ONE of the world's biggest pension funds, the California State Teachers' Retirement System (CalSTRS), has tapped the fund manager behind Australia's super industry to manage more than $US500 million ($466 million) worth of infrastructure investments around the world.
Sydney Morning Herald 8/02/2012 | IT TOOK some time but the Thai sugar giant Mitr Phol has gained a majority interest in MSF Sugar, owner of the Maryborough sugar mill in Queensland, and declared its $313 million takeover bid unconditional.
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