Telecom is not expected to spring any surprises on to financial markets when it reports its fourth-quarter and full-year results on Friday.
Forsyth Barr broker Ken Lister said he was expecting a "business as usual" report from New Zealand's largest listed company, although there could be an update on the operational separation of Telecom.
Separation formally occurred on March 31 with full separation implemented by June 30.
Forsyth Barr was forecasting full-year earnings to June 30 to be down 4.4% to $1.8 billion, with reported profit from continuing operations to be down 16.6% to $714 million.
"We understand the 2009 full-year earnings guidance provided at the April briefing day was based on a top-down view, and we may get an update based on four further months of trading. In the current climate, we think a positive revision would be unlikely."
Unbundled local loop services were due to be available in 30 exchanges by June 30 and an update on that and the cabinetisation programme was expected, he said.
Telecom Mobile would be poorly placed until its new network was operating.
Mr Lister expected mobile numbers and comments to reflect that, as well as some guidance on the roll-out of the new network.
Telecom's share price continued to imply more substantial falls in longer-term return on invested capital than Forsyth Barr believed would prove to be the case.
The renewed focus on cost-cutting and rebuilding customer preference revealed at the April briefing day was encouraging but earnings were expected to decline for the next two years.
