Ann: FORECAST: TEL: Telecom confirms FY12 guidanc

• Release Date: 08/06/12 10:55
• Summary: FORECAST: TEL: Telecom confirms FY12 guidance and advises NYSE delisting
• Price Sensitive: No
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TEL
08/06/2012 08:55
FORECAST

REL: 0855 HRS Telecom Corporation of New Zealand Limited

FORECAST: TEL: Telecom confirms FY12 guidance and advises NYSE delisting

STOCK EXCHANGE ANNOUNCEMENT

June 8, 2012

Telecom confirms FY12 financial guidance and advises intention to delist from
NYSE

FY12 financial guidance

Telecom has confirmed that it remains on track to deliver H2 FY12 adjusted
EBITDA guidance of around $560m.
'During the first quarter of calendar 2012 there was an increase in
competitive activity in the fixed line and mobile markets. However, despite
increased competition, our focus on reducing costs sees us on track to
deliver EBITDA guidance as planned,' said acting Telecom CEO, Chris Quin.
'Competitors have been very active with a variety of new offers, which has
increased customer churn.  We are firmly focused on responding and improving
customer retention, for example, adding value to our products such as
increased data caps on broadband plans,' says Quin.
'In mobile we remain focused on growing postpaid connections by leveraging
the strength of the XT network, but we are seeing continuing decline in our
prepaid customer base prior to the expected shutdown of the CDMA network in
July this year,' he said.
Management also expect to deliver H2 FY12 Net Earnings near the top end of
the $160 to $190m guidance range.
'Net financing costs are lower than expected so we expect to finish the year
near the top of the range.  The decrease in financing costs relates to
additional finance lease income post demerger, which will continue into the
future' said Telecom CFO, Nick Olson.
Telecom also expects to deliver H2 FY12 Capex near the top end of the $190m
to $220m guidance range.

NYSE delisting

Concurrently, Telecom has announced that it intends to delist its American
Depositary Receipts (ADRs) from the New York Stock Exchange (NYSE) and notes
that its shares and ADRs will not be listed or quoted on another national
securities exchange in the US.
Telecom ADRs' last day of trading on the NYSE is expected to be 9 July and
the delisting is expected to become effective on 19 July 2012.
The delisting, in time, will reduce administration costs and complexity
associated with the NYSE listing. ADRs equate to 15% of Telecoms listed
shares, and therefore Telecom will retain an ADR programme in the US, on the
'over-the-counter' (OTC) market to enable investors to trade ADRs.  Trading
on the OTC market is expected to commence on 10 July 2012.  Telecom's
ordinary shares will continue to be listed and traded on the NZX and ASX.
'We are leaving no stone unturned in our drive to reduce costs and
complexity, and delisting from the NYSE is a logical step in this process.
However, we remain committed to our US investor base and will retain high
standards of corporate governance and continue to provide comprehensive and
transparent financial reporting,' said Nick Olson.
Telecom also intends to permanently deregister and terminate its reporting
obligations under the Securities Exchange Act of 1934 in the event that it
meets the criteria for deregistration.

- ends -

Contact:

For investor relations queries, please contact:
Stefan Knight
Head of Investor Relations
+64 (9) 355 5275

For media queries, please contact:
Michael Burgess
Corporate Communications Manager
+64 (0) 27 611 1108
End CA:00223677 For:TEL    Type:FORECAST   Time:2012-06-08 08:55:56