Telecom reported today net earnings after tax for the nine months to 31 March 2004 of $NZ597 million compared with $NZ498 million for the same period in 2003.

This result included one-off abnormal items of $NZ40 million including a $NZ28 million profit on the sale of Telecom’s 12% stake in Sky Network Television booked in the second quarter of 2003-2004, and $NZ12 million arising from the sale of AAPT’S stake in AOL7 during the third quarter ended 31 March 2004. Net earnings for the nine months to 31 March 2004 were $NZ557 million when adjusted for the $NZ40 million in abnormal items, an increase of 11.8% compared with the previous corresponding period.