The week in review

Friday 16th August 2002

Telecom cheered the market with a better-than-expected $670 million pre-abnormal net profit even as it posted a $188 million bottom-line loss, its first ever. Core earnings improved as costs were cut faster than revenue fell but analysts warned the company might have to again write down its AAPT investment, perhaps by as much as $1 billion, after chopping its value by $850 million to $2 billion.

Eldercare New Zealand posted a $2.8 million June-year loss, up from an $8.2 million loss a year ago, after providing $2.2 million against the Regents Park village development. Revenue rose 18% to $40.4 million and earnings before interest and tax were $1.4 million, up from a $3.9 million deficit in 2001.

Fisher & Paykel Healthcare said it was on track for double-digit revenue growth after posting a $30.4 million June first-quarter profit. The figure was inflated by $17.5 million of foreign exchange gains but operating earnings were down 16% to $22.1 million. Chief executive Mike Daniell said he expected full- year revenue of $100 million.

Sky Network Television's $30.2 million June-year loss was up 29% on last year's $42.3 million deficit and at the higher end of the range of analysts' estimates.

Sky's 66% owner Independent Newspapers Ltd posted a $37.8 million June-year profit after writing off $13.8 million on merger and restructuring costs.

Certified Organics lost $1.2 million in the June first half as it prepared to commercialise its organic weed killer. The company, which began marketing in June, reported sales of $60,000 in July and said it expected progressive increases.

The Lotteries Commission reported a 2% lower $113.1 million annual profit on sales of $560.8 million, down from $605.7 million a year ago. Chief executive Ariane Burgess said the rate of profit fall - down from 10% the previous year - was pleasing given "the ever-increasing number of poker machines."

Rio Beverages was fined $22,600 in the Auckland District Court for five breaches of the Fair Trading Act, involving misleading claims about its Thexton's Quality beverages. Health claims about echinacea content were found to be false as consumers would need to drink 177 litres a day to benefit.

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