The Canterbury earthquakes have dented earnings at the New Zealand arm of Australia's biggest phone company, Telstra.
TelstraClear reported a pre-tax operating loss of $6 million in the year to the end of June, compared with $16 million earnings in the previous year.
Revenue rose 1.5% to $673 million, despite what the company says has been a difficult economic environment and the disruption of the Canterbury earthquakes.
Operating expenses rose by more than 6% as it incurred restoration and recovery costs from the quakes.
While revenue grew in all parts of TelstraClear's business, bad and doubtful debts rose by more than 5%.
Overall, Telstra reported an $A3.2 billion profit - down from $A3.9 billion a year earlier.