Telecom on track to meet FY14 guidance
- 26 May, 2014 16:53
Telecom has announced that it is on track to change its name to Spark come August this year, and meet its FY 2014 guidance.
“We are well on track to meet our FY14 guidance. Our full year guidance for adjusted EBITDA from continuing operations remains unchanged at $925 million to $945 million, excluding the one-off AAPT sale proceeds and rebranding costs. As noted at the half year, our intention is to pay a minimum dividend of 16 cps for the FY14 year,” said CEO Simon Moutter.
“The change of our name and core brand to Spark, scheduled to take place in August, is also on-track.”
The statements come in the wake of the firm finishing the first stage of a programme to re-engineer and update key customer service IT platforms, which has been two years in the making.
“The reengineering programme is a significant driver of our long-term strategy.
“The first stage of reengineering has delivered major improvements to our foundation system capabilities and to our prepaid mobile customer systems, as well as to some customer facing systems including a brand new website.
“This first stage implementation, costing around $70 million to date, affected more than 120 major IT systems and took more than 430 person years of work to deliver,” said Moutter.
He added that while the implementation, which took place over the weekend of 17 and 18 May 2014 went smoothly, going live on the new systems had to be delayed by 12 hours due to the hardware fault that affected the internal IT network on the 19th of May.
According to Telecom, successive stages will expand to post-paid mobile and broadband and will continue to improve the customer experience and provide for more efficient customer service operations.
The next major stage of the reengineering programme is due to be completed in the FY15 financial year, with the emphasis on post-paid mobile and building on the foundation laid in the first stage.