30 Aug 2010

Vector believes its broadband proposal is best

5:57 am on 30 August 2010

Vector is confident it has the best proposal to roll out ultra-fast broadband across the Auckland region, but says it's not dependent on it for growth, and is eyeing other opportunties.

The country's largest electricity and gas company lifted its full-year profit by 17% to $193.5 million in the year ending June, as revenue rose 1% to $1.19 billion.

Vector is bidding to take part in the Government's $1.5 billion ultra-fast broadband rollout; it wants to cover the Auckland region and compete directly with Telecom's bid to cover the entire country.

Chief executive Simon Mackenzie says that he's confident they have the best proposal for Auckland but Vector would be willing to work with Telecom if necessary.

Mr Mackenzie says they're also eyeing acquisition opportunities in the coming year.

Comfortable with forecasts

Vector says it is comfortable with analysts' earnings forecasts for the 2011 financial year of an after-tax profit of between $180 million and $208 million.

Meanwhile, Mr Mackenzie says a decision by the Commerce Commission to regulate rates of returns for electricity network companies is unfair and out of sync with Australia.

He noted that 60% of Vector's income is regulated.