The New Zealand share market slipped into negative territory after a mixed opening, as investor sentiment soured on Telecom despite the phone company indicating second half earnings would meet guidance.
The NZX 50 Index fell 6.32 points, or 0.18 per cent, to 3467.63 as of noon. Just over 11 million shares changed hands in morning trade, with a turnover of $39.9 million.
The New Zealand dollar recently traded at US76.61c, down from US77.03 at 8am, and US77.04c at 5pm yesterday.
Australian stocks got off to a similarly soft start, matching a soggy finish on Wall Street, with the S&P/ASX 200 Index down 0.19 per cent at 4100.9 in early trade.
Telecom fell 2 per cent to $2.45. The phone company today said second half earnings would come in at around $560m, on par with previous advice.
The company has recently been at the centre of M&A speculation storm, with talk rival Telstra was looking to sell its New Zealand assets in order to make a bid for the iconic kiwi company.
Goodman Fielder, the Australian food ingredient maker, fell 2.6 per cent to 75c.
Rakon, the electronics components maker which is set to lose its spot on the NZX 50 Index under a weightings reshuffle, fell 2.1 per cent to 47c.
SkyCity Entertainment, the casino and hotel operator, fell 0.8 per cent to $3.53. The stock is rated as rated as "buy" according to a Reuters poll of nine analysts.
Auckland International Airport, the country's biggest gateway, fell 0.8 per cent to $2.51.
The airport company yesterday announced that it would be lowering international fees to attract overseas visitors, but would be hiking domestic fees to make up for the shortfall.
Financial stocks were also under pressure, with ANZ, the country's biggest lender, down 0.3 per cent to $28.10. Westpac, the Australian lender, fell 0.2 per cent to $26.80.
PGG Wrightson, the rural services company, rose 2.7 per cent to 32c, leading gainers as of noon.
Nuplex, the chemicals maker, rose 2.9 per cent to $2.49. The company said this week that while earnings are expected to fall they will still meet guidance, albeit at the lower end of the range.
Fletcher Building, the construction company, rose 0.2 per cent to $6.30.
- © Fairfax NZ News
Telecom on track for second-half target - Big Pond
Telecom, New Zealand's biggest listed company, says cost cutting and lower borrowing costs have helped keep earnings on track even as competitors chase market share.
It says second-half earnings before interest, tax, depreciation and amortisation (Ebitda) would be about $560 million, meeting the guidance it gave with its first-half results in February.
Net profit in the second half would be 'near the top end' of its $160m-to-$190m forecast, it said in a statement.
The statement comes after Telstra this week said it is in talks about the possible sale of its TelstraClear unit in New Zealand to Vodafone, already Telecom's biggest rival in the mobile market.
A merger would create a more powerful rival for Telecom with fibre networks in major cities.
'Competitors have been very active with a variety of new offers, which has increased customer churn,' Telecom acting chief executive Chris Quin.
'Despite increased competition, our focus on reducing costs sees us on track to deliver Ebitda guidance as planned.'
Among cost-cutting measures, the company will delist its American depositary receipts from the New York Stock Exchange, effective July 19.
The ADRs amount to 15 per cent of Telecom's listed shares and will be able to be traded on the over-the-counter market starting on July 10.
'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,' chief financial officer Nick Olson said.
Telecoms financing costs are lower than expected, which Mr Olson said reflected additional finance lease income following the Chorus demerger in November.
Nokia Is First to Market 2011 Canada Census Data - DirectionsMag.com
Census data included in the NAVTEQ Map helps businesses better understand customers through lifestyle and population statistics
– Nokia today announced at the USGIF Technology Days event that its Location & Commerce business is the first to launch 2011 Canada Census data in its Census Boundaries product. This data will provide geographic information systems (GIS) and geo-marketers access to a deeper level of census data for market analysis. The 2011 Canada Census data will be offered as part of the Q1/2012 NAVTEQ Maps database release and available to Nokia customers in June 2012.
When combined with demographic data, Census Boundaries becomes a tool for lifestyle and population analysis in the fresh and reliable context of the NAVTEQ map. This enables organizations to boost efficiencies, control costs, and make informed decisions for a range of applications. For example, geo-marketers can use Census Boundaries to discover population trends and become informed about where a business’s key customer segments are located.
Census Boundaries provides geo-marketers access to more options for analyzing census data through offering multiple geographic layers. This level of market analysis will significantly enhance a wide range of applications, including business intelligence, direct mail, GIS, market research, retail site selection and sales territory generation. In addition, public organizations benefit from using Census Boundaries by better understanding constituencies, preparing and responding to emergencies, and planning administrative district expansions.
“As technology evolves, we are helping to drive more sophisticated GIS and geo-marketing analytics by providing data that gives an enhanced depiction of real life in the real world,” stated Allan Tomlinson, Director North America Map and Content, Location & Commerce, Nokia. “We are providing the latest Canada Census data to enable geo-marketers with the information to derive richer and more preciseinsights on the Canadian market.”
Census Boundaries is also available in the United States, Mexico, Virgin Islands, and Puerto Rico. Demographic data is included in the Census Boundaries product for the United States and Mexico.
About Nokia `s Location & Commerce Business
Nokia is a global leader in mobile communications whose products have become an integral part of the lives of people around the world. The company’s Location & Commerce business, including NAVTEQ Maps products, the Nokia Location Platform as well as Nokia Maps aims to build and monetize unique location experiences for great mobile products, as well as the navigation industry, the automotive market and government and business solutions. Begin to explore our capabilities at www.maps.nokia.com.
Nokia and NAVTEQ Maps are trademarks in the U.S. and other countries. All rights reserved.
Telecom industry aims to reduce diesel consumption - Livemint.com
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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.Nokia lines up slew of launches to increase market share - NDTV
Aiming to increase its market share in smartphones category, Finnish handset maker Nokia has lined up a slew of launches in the coming months, according to a top company official.
"You have to be innovative all the time. You have to lead the consumer through innovation.. We need to set a new benchmark (in the smartphone category)..." Nokia IMEA Senior Vice-President D Shivakumar said.
Observing that the company though entered in the dual sim phones segment ''late'' but had become a market leader, he said they were on the right ''path'' with a right ''strategy'' (to increase the market share).
Shivakumar said the launch of ''Lumia'' range of smartphones were highly ''successful'' and added that they have two more new models in the offing.
Nokia India Director, Smart Devices, Vipul Mehrotra said, "There are two in market and two more models will come".
Besides enhancing this segment, Mehrotra said they would be expanding the mid-phone Asha range by adding seven models.
Asked whether the company would make investments in the Indian market, Shivakumar replied in the affirmative saying India was one of the bigger markets for Nokia and the company has already made huge investments.
"We also have our manufacturing plant here which is one of the largest for Nokia. It has created good job opportunities for the locals and 60 per cent of the employees are women", Shivakumar said.
The two new models launched today are manufactured from the Sriperumbudur facility, a company official said.
About their future launch plans, Vipul Mehrotra said they would be launching Nokia 808 PureView, Lumia 900 and Lumia 610 range during the second quarter of this year.
"We believe the launch of Nokia Lumia 900, Lumia 610 and PureView solutions will deliver a computing experience to our consumers...", he said.
Telecom confirms forecast, delists from NYSE - National Business Review
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 [UPDATE: in late Friday trading it had slid 2.2% to $2.44].
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.
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