16 May 2013

Telecom's restructuring costs up

6:48 pm on 16 May 2013

Telecom's restructuring costs have ballooned, with the company saying its shake-up could now cost as much as $130 million. That's up from $80 million estimated in March.

Telecom is cutting up to 1200 jobs, in a bid to save $120 million per year in wages.

Meanwhile, the company says its full year earnings will be at the lower end of forecasts, due to increased competition and tighter margins.

In February, the company said it hoped to make between $1.04 - $1.06 billion this financial year.

A presentation from Telecom's investor day in Auckland on Thursday, shows the company wants to win a bigger share of the mobile market from Vodafone, and hold on to its 47% share of the broadband market, even if it's unprofitable.

Telecom shares have closed down 7 cents to $2.56 on Thursday.