Telecom lowers capex estimates
Telecom released it's trading update for the quarter ended 31 March, 2011 today, focusing on lowered capital expenditure estimates for 2011 and 2012.
"We now expect full year Capex to be within the $900m to $930m range for the FY11 financial year, down from the $950m to $1.0bn indicated previously. "In addition, we have also introduced Capex guidance for FY12, indicating that Capex for that period will be no more than $750m," said Telecom CEO Paul Reynolds in a statement.
Reynolds puts the lower expenditures down to cost control and the compltion of multi-year investments such as the XT mobile network and fibre-to-the-node.
Guidance for FY2013 capex has been withdrawn following the announcement to deliver capex target one year early as well as uncertainty over to the government's upcoming UFB decision.
The update also highlights the growth in broadband. Connections are continuing an approximate 10% -12% growth, while growth in mobile broadband is having a limited impact on fixed line connections.
The full update can be found here.