Analysts could take a long time to decipher the latest Telecom financial report, coming just a few months after the company was demerged from network arm Chorus, in what CEO Paul Reynolds describes as ‘probably the most complex corporate transaction in recent New Zealand history’.
On paper, Telecom reported a net profit after tax of $1,006 million for the six months to December 31, 2011.
However, this must be tempered with a one-off $863 million non-cash gain from the demerger, a $28 million ‘non-cash reclassification’ from simplifying the corporate structure, $110 million in debt restructuring costs, and $47 million in demerger costs.
With all of these accounted for, the company’s adjusted result net profit after tax was $240 million.
We’ll have more from a conference call with Telecom shortly.
Update: Chorus CEO Paul Reynolds says the stability Telecom has shown in its latest financial result is especially impressive considering the 'colossal' opportunity cost associated with the demerger from network arm Chorus.
"We welcome an era where things are clearer, more stable, and we can get on and compete," Reynolds says.
"We're looking forward to having a management team that can be normal and focus on running the business instead of running around."