Jamie Gray

Jamie Gray is a business reporter for the New Zealand Herald and APNZ wire agency

Telecom ditchs NYSE, says earnings on track

Telecom is de-listing its shares from the New York Stock Exchange to save costs. Photo / Greg Bowker
Telecom is de-listing its shares from the New York Stock Exchange to save costs. Photo / Greg Bowker

Telecom said it plans to de-list its shares from New York Stock Exchange (NYSE) and to re-list them on the American over the counter (OTC) market to save costs.

The company also said it was on track to meet its June 2012 year earnings guidance of earnings before interest, tax, depreciation and amortisation (EBITDA) of around $560 million.

Telecom said there had been an increase in competitive activity in the fixed line and mobile markets in the first quarter of calendar 2012.

"However, despite increased competition, our focus on reducing costs sees us on track to deliver EBITDA guidance as planned,' said Telecom's acting chief executive, Chris Quin, said in a statement.

Management also expect to deliver second half net earnings near the top end of the $160 to $190m guidance range.

The last day of trading for Telecom's American depositary receipts (ADRs) on the NYSE is expected to be July 9 and the de-listing is expected to become effective on July 19.

The company said the de-listing will reduce administration costs and complexity associated with the NYSE listing. ADRs equate to 15 per cent of Telecom's listed shares.

Telecom will retain an ADR programme in the US on the OTC market to enable investors to trade ADRs. Trading on the OTC market is expected to start on July 10.

- APNZ

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