Profits fell at Vodafone New Zealand for the first time since the company broke even in 2001.
Accounts available yesterday for the financial year to March 31 show company profits fell 7 per cent to $177.7 million.
Company revenues were up by 6.6 per cent to $1.6 billion.
No dividend
was paid this year to its British parent, Vodafone Group, but company spokesman Paul Brislen said that from next year Vodafone New Zealand would aim to pay an annual dividend of between $90 million and $100 million.
Vodafone New Zealand has twice paid Vodafone Group a dividend - $631 million in 2007 and $425 million in 2006.
Speaking to the Herald last month, chief executive Russell Stanners said the telecommunications market was flat.
"Even fixed-broadband has fallen off," he said.
At its full-year results in August, Telecom said the company had remained relatively resilient in the economic downturn and calculated the impact over the past financial year to be around $40 million.
Telecom's chief financial officer, Russ Houlden, said the biggest impact was seen in the lower calling volumes.
Stanners said Vodafone was feeling that pressure more acutely as it had fewer monthly fee-paying customers.
"Ours are usage-based, so people have dropped their usage.
"I think in the mobile sector, it went ex-growth in March to June last year and it hasn't started to grow since then."
Stanners said future revenue growth would come from two areas: the use of mobile data, and growing Vodafone's 30 per cent share of "total" telecommunications business.
This week Vodafone Group announced it would drop its brand tagline "make the most of now" in favour of "power to you".
The company revealed a new user interface for smartphones - Vodafone 360 - which will be available to New Zealand customers next year.
