Message Font: Serif | Sans-Serif
 
UnThreaded | Threaded | Whole Thread (1) | Ignore Thread Prev | Next
Author: TMFWysocki Big gold star, 5000 posts Home Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 459  
Subject: Future Earnings Picture Murky Date: 5/3/2007 4:10 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 2
Telecom shareholders are set to reap a $1.1 billion windfall thanks to a widely expected capital return, but looking further ahead the earnings picture gets murky.

The capital return accounts for almost half the $2.24 billion Telecom made from the sale of its Yellow Pages business in March.

About 11 per cent of Telecom's shares will be cancelled, with a decision about the amount of cash per share to be made in July and the cancellation completed by September.

Chairman Wayne Boyd said the board's intention when setting the size of the capital return was to maintain a balance sheet structure with financial flexibility to enable investments.

But he added Telecom would not invest in new technology unless it could get a fair rate of return.

"This (capital) return does not preclude extensive future investment. Further investment in broadband must, however, be contingent on being able to retain sufficient regulatory certainty to earn a fair rate of return on an investment."

<snip>

But Telecom chief executive Theresa Gattung complained that six weeks out from the start of a new financial year she was not able to give the market guidance on what to expect in the year ahead, as there were "too many moving parts" to Telecom at the moment.

"It's not desirable, but it's the reality of where we are. Everything is so fluid at the moment, in terms of the operating model, timing of the delivery of separation and regulated services and the pricing of those regulated services."


http://www.stuff.co.nz/4047049a13.html

David
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (1) | Ignore Thread Prev | Next

Announcements

Post of the Day:
Apple

Apple and Ninety Years Ago
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement