13 Feb 2009

No payrise for Telecom bosses as profit tumbles

10:00 pm on 13 February 2009

Top Telecom employees will not be getting a pay rise this year as the company tries to cut costs.

The freeze on salary increases comes as the company sees its half-year profit tumble by almost 6%.

New Zealand's largest listed company made $162 million in the six months to December, down 59% on the $397 million it made in the same period the previous year.

Telecom chief executive Paul Reynolds says the company has a responsibility to try to cut costs where it can.

Mr Reynolds says tougher competition and asset writedowns are to blame for the fall in profit.

The result includes a $68 million dollar write-off at its subsidiary PowerTel and a $33 million write-off of old GSM mobile equipment.

However, Telecom still expects to make between $460 million and $500 million profit in the full year.

The company's executive team and most senior managers will receive no pay increases this year.

Mr Reynolds says Telecom has a responsibility to trim costs where it can.