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Telecom NZ's restructuring costs to be higher

2013-05-16 07:12:00| Telecompaper Headlines

(Telecompaper) Telecom New Zealand's restructuring costs are expected to be higher than first announced, at NZD 100-130 million, up from the earlier estimate of NZD 70 to 80 million. The increase reflects the inclusion of estimated non-cash accounting adjustments associated with the cessation of business activities (such as onerous lease contracts and other asset write-offs), the company said at its investor day where it outlined its strategy shift from a traditional fixed and mobile infrastructure company to a future-oriented, competitive provider of communication, entertainment and IT services delivered over its networks and the cloud. Telecom's adjusted EBITDA guidance for FY 2013 remains NZD 1.04-1.06 billion, although management expects that the result will be near the bottom end of this range, primarily due to a further increase in price competition in the fixed-line market and continued margin pressure in Gen-i. This guidance excludes one-off restructuring costs associated with the cost reduction and strategic change programme.

Tags: costs higher telecom restructuring

Category:Telecommunications

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