Telecom expects to meet its earnings targets this year, but intends to spend less on capital investment.
The company says it is on track to deliver adjusted earnings of between $330 - $370 million in the 2011 financial year.
But capital expenditure will fall to between $900 - $930 million - as much as $70 million less than previously forecast.
The reduction comes as Telecom finishes significant investment programmes, including the XT mobile network.
The company has withdrawn its financial estimates for 2013, partly because of uncertainty about the Government's $1.5 billion ultra fast broadband plan, which it expects will reshape the industry.