Telecom lifted first quarter net earnings 9% to $163 million, compared to a year earlier, despite falling revenue.
The company said on Friday the result was due in part to a $43 million one-off effect from changes in tax law, while a Southern Cross dividend of $35 million was received in the quarter, compared to $39 million in the first quarter of the previous year.
Earnings before interest, taxation, depreciation and amortisation (ebitda) of $447 million for the three months to the end of September, were 4.1% down on a year earlier.
Revenue for the quarter fell 6.5% on the equivalent quarter in the previous financial year, to $1.36 billion, while operating expenses fell 7.7% to $909 million.
Chief executive Paul Reynolds said ebitda remained on track for the company's full year guidance, driven by a combination of revenue growth in mobile thanks to a strong start for the XT mobile network, and continuing progress with costs.
The impact of the economic downturn so far remained modest, he said.
A first quarter dividend of 6 cents per share is to be paid, unchanged from last year.
Telecom shares closed at $2.48 on Thursday, having ranged
between $2.88 and $2.19 in the past year.
