Telecom annual operating profit down 15.5 PCT

WELLINGTON, New Zealand (AP) _ New Zealand's largest listed company, Telecom Corp., Friday reported a 15.5 percent fall in annual operating profit to 713 million New Zealand dollars (US$513 million).

The result for the year ending June 30 was achieved on revenue which rose 2 percent on the previous year to NZ$5.67 billion (US$4.08 billion), the company said in a statement.

Earnings before interest, tax, depreciation and amortization were down 4 percent to NZ$1.89 billion (US$1.36 billion).

Chief executive Paul Reynolds said the result highlighted the increasingly competitive nature of the New Zealand communications market.

"In this new environment, customers have more choice and opportunities than ever before," he said.

Telecom's 2007 result was boosted by one-off gains, including NZ$2 billion (US$1.4 billion) from the sale of its yellow pages directories arm.

Expenses for the latest year rose 5 percent to NZ$3.78 billion (US$2.72 billion), in part reflecting the cost of operational separation. Telecom has been forced by the New Zealand government to split its business into three arms and to open its networks to increased competition.

Reynolds said Telecom had delivered a good result during a period of profound change.