Telecom says it remains on track to deliver H2 FY12 adjusted ebitda guidance of around $560 million and net earnings "near the top end of the $160m to $190m guidance range" (the ebitda and net profit forecasts it made at its half-year report on February 24).
The company says while the market became more competitive, cost cutting and cheaper finance has seen earnings stay on track.
Telecom shares [NZX:TEL] took a 4% hit on Tuesday, falling from $2.54 to $2.44 as Telstra confirmed it was in talks to sell TelstraClear to Vodafone, potentially creating a competitor of significant scale.
The stock regained some of the lost ground on Wednesday and Thursday (closing at $2.50), but did not enjoy any pop as a secondary rumour emerged that Telstra was clearing the decks for a run at Telecom.
Most analysts polled by NBR did not see a buyout fitting Telstra's strategy. Quiet trading indicated investors shared that opinion.
Nevertheless, a well-placed source at a major network infrastructure provider told NBR ONLINE yesterday that Simon Moutter, due to start as CEO on September 1, is already focusing heavily on his new role, quipping "he's already started".
Earlier, acting Telecom CEO Chris Quin told NBR he would be talking to Mr Moutter regularly during the transition period.
Today, in a statement to the NZX, Mr Quin said" "During the first quarter of calendar 2012 there was an increase in competitive activity in the fixed line and mobile markets. However, despite increased competition, our focus on reducing costs sees us on track to deliver ebitda guidance as planned."
CFO Nick Olson added that "net financing costs are lower than expected so we expect to finish the year near the top of the range. The decrease in financing costs relates to additional finance lease income post demerger, which will continue into the future."
Mr Quin said that "competitors have been very active with a variety of new offers, which has increased customer churn".
"We are firmly focused on responding and improving customer retention - for example, adding value to our products such as increased data caps on broadband plans.
"In mobile, we remain focused on growing postpaid connections by leveraging the strength of the XT network, but we are seeing continuing decline in our prepaid customer base prior to the expected shutdown of the CDMA network in July this year," he said.
At its February 24 half-year results briefing, Telecom said 639,000 customers remained on its CDMA network, which is due to be closed on July 31 (down from around one million at Telecom's previous six-month report).
The company said the 639,000 customers accounted 11% of its revenue.
Chief executive Paul Reynolds said on a conference call to analysts that "only" 300,000 had actively used the CDMA network in the past month.
This morning, Telecom refused to anser an NBR ONLINE query about how many customers remained on the CDMA network. A spokesman said the migration was "on track".
NYSE delisting
Telecom also said it intends to delist its American Depositary Receipts (ADRs) from the New York Stock Exchange. Its shares and ADRs will not be listed or quoted on another national securities exchange in the US.
Telecom ADRs last day of trading on the NYSE is expected to be July 9 and the delisting is expected to become effective on July 19.
The delisting, in time, will reduce administration costs and complexity associated with the NYSE listing. ADRs equate to 15% of Telecom's listed shares, and therefore Telecom will retain an ADR programme in the US, on the "over-the-counter" market to enable investors to trade ADRs.
Trading on the OTC market is expected to start on July 10. Telecom’s ordinary shares will continue to be listed and traded on the NZX and ASX.
‘We are leaving no stone unturned in our drive to reduce costs and complexity, and delisting from the NYSE is a logical step in this process," Mr Olson said.
"However, we remain committed to our US investor base and will retain high standards of corporate governance and continue to provide comprehensive and transparent financial reporting."
Telecom also intends to permanently deregister and terminate its reporting obligations under the Securities Exchange Act of 1934 in the event that it meets the criteria for deregistration.
Shares were flat at $2.50 in early Friday morning trading.
Judge cancels Apple's patent infringement trial against Motorola - CNET News
A judge ruled today that Apple and Motorola won't be able to duke it out just yet, Bloomberg reports.
Apple's patent infringement jury trial against Google's Motorola Mobility was scheduled for June 11, but U.S. Circuit Judge Richard A. Posner told the companies' attorneys he is rejecting arguments for damages because neither side was able to "prove injury."
This would have been the first patent trial between the two companies since Google acquired Motorola for $12.5 billion last month, although Apple and Moto have been sparring for quite a while. Motorola claims that Apple infringed several of its wireless and smartphone technologies. Apple has alleged that Motorola has violated some of its key patents related to iOS devices.
Posner is still considering whether to go forward with an Apple request for injunctive relief and is expected to issue a decision later today, according to Bloomberg.
Telecom Corp of New Zealand : Telecom confirms FY12 guidance and advises NYSE delisting - 4-traders (press release)
STOCK EXCHANGE ANNOUNCEMENT
June 8, 2012
Telecom confirms FY12 financial guidance and advises intention to delist from NYSE FY12 financial guidance Telecom has confirmed that it remains on track to deliver H2 FY12 adjusted
EBITDA guidance of around $560m.
'During the first quarter of calendar 2012 there was an increase in competitive activity in the fixed line and mobile markets. However, despite increased competition, our focus on reducing costs sees us on track to deliver EBITDA guidance as planned,' said acting Telecom CEO, Chris Quin.
'Competitors have been very active with a variety of new offers, which has increased customer churn. We are firmly focused on responding and improving customer retention, for example, adding value to our products such as increased data caps on broadband plans,' says Quin.
'In mobile we remain focused on growing postpaid connections by leveraging the strength of the XT network, but we are seeing continuing decline in our prepaid customer base prior to the expected shutdown of the CDMA network in July this year,' he said.
Management also expect to deliver H2 FY12 Net Earnings near the top end of the
$160 to $190m guidance range.
'Net financing costs are lower than expected so we expect to finish the year near the top of the range. The decrease in financing costs relates to additional finance lease income post demerger, which will continue into the future' said Telecom CFO, Nick Olson.
Telecom also expects to deliver H2 FY12 Capex near the top end of the $190m to
$220m guidance range.
Concurrently, Telecom has announced that it intends to delist its American Depositary Receipts (ADRs) from the New York Stock Exchange (NYSE) and notes that its shares and ADRs will not be listed or quoted on another national
securities exchange in the US.
Telecom ADRs' last day of trading on the NYSE is expected to be 9 July and the delisting is expected to become effective on 19 July 2012.
The delisting, in time, will reduce administration costs and complexity associated with the NYSE listing. ADRs equate to 15% of Telecoms listed shares, and therefore Telecom will retain an ADR programme in the US, on the 'over-the- counter' (OTC) market to enable investors to trade ADRs. Trading on the OTC market is expected to commence on 10 July 2012. Telecom's ordinary shares will continue to be listed and traded on the NZX and ASX.
'We are leaving no stone unturned in our drive to reduce costs and complexity, and delisting from the NYSE is a logical step in this process. However, we remain committed to our US investor base and will retain high standards of corporate governance and continue to provide comprehensive and transparent financial reporting,' said Nick Olson.
Telecom also intends to permanently deregister and terminate its reporting obligations under the Securities Exchange Act of 1934 in the event that it meets the criteria for deregistration.
- ends -
For investor relations queries, please contact: Stefan Knight
Head of Investor Relations
+64 (9) 355 5275
For media queries, please contact: Michael Burgess
Corporate Communications Manager
+64 (0) 27 611 1108
Telecom industry aims to reduce diesel consumption - Livemint.com
[getrss.in: unable to retrieve full-text content]
New Delhi: Some five years ago, India’s telecom industry overtook the railways briefly as the country’s largest consumer of diesel, estimated at more than 2 billion litres a year, according to a 2011 report by the environmental group Greenpeace.
No comments:
Post a Comment