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Telecom has reported a 2.5% rise in net profit, thanks to growth in mobile and internet revenues.
The telecommunications company made $204 million in the first quarter, before a gain of $20 million from the sale of its stake in Telecom Samoa.
The result compares with a $199 million figure from the same period last year, and is slightly up on market expectations.
Telecom Chief Executive Theresa Gattung says the New Zealand operations had performed solidly with mobile, broadband and Yellow Pages Group revenues all being strong features.
"In mobile we have seen a continuation of strong revenue growth (up 7.4% in the September 06 quarter) while mobile acquisitions and upgrade costs were lower in this quarter. Mobile connections increased a very pleasing 68,000 for the quarter," she says.
Gattung also says that Telecom will launch a competitive sale process for its Yellow Page Group business.
The decision follows a scoping study and a review by Telecom's board which concluded that a sale would be in the best interests of the Telecom Group and its shareholders in the longer term.
The Yellow Pages Group includes the printed Yellow Pages, White Pages and their on-line equivalents, Local Directories, New Zealand Retirement Guide and the newly acquired New Zealand Tourism Online.
Meanwhile, Australian based Ron Spithill has been appointed to the Telecom board.
Spithill has an extensive background in the telecommunications industry developed through working in senior global positions with Alcatel.
He has recently returned to Sydney after six years in senior positions in Shanghai and Paris.
Spithill has just stepped down as chairman of Alcatel Australia and previously held positions as executive vice president and chief marketing officer of the Paris-based Alcatel group and vice-chairman of Alcatel Shanghai Bell.
