Telecom's first-half 2013 report today is likely be to
scrutinised for its strategic outlook and review process, as
much as its bottom-line result.
Craigs Investment Partners broker, Greg Easton, said today's
report for the half-year was expected to be in line with
expectations, with net earnings booked of $158 million and
earnings before interest, tax, depreciation and amortisation
(ebitda) at $520 million, for the first-half trading to
However, he noted Telecom had signalled it was again going to
change the way it reports its financial results.
''The result will be overshadowed by announcements regarding
Telecom's strategy review which will be a high-level outline,
with detail to come in May,'' Mr Easton said. Forsyth Barr
broker Suzanne Kinnaird said revenue was expected to be down
2% to $2.27 billion, while ebitda was expected to be up 3% to
She forecast profit up 66% to $163 million, because of lower
interest charges, tax and depreciation, associated with the
Chorus split last year.
Because Telecom hadlaunched market-matching fixed line and
mobile plans last year, it reflected a ''new willingness'' to
take a short-term ''hit'', in order to retain customers, she
''Overall, we expect the retail business to have halted its
share decline in both fixed and mobile shares,'' Ms Kinnaird
saidWith a new chief executive, Simon Moutter, Mr Easton said
there would ''undoubtedly be a few surprises in this
He expected cost savings to be a feature of the report, but
also investment in implementing new cost structures and
future growth opportunities''The potential for a reset of the
business seems to have investors sitting on the sidelines,''
However, Ms Kinnaird expected Telecom to hold back any
''major revelations'' on strategic objectives, instead
leaving details until midyear, and today to just reiterate an
emphasis on market share, costs and customer focus plans.