Chairman: Gattung's job safe

By Nick Stride

Friday 15th November 2002

Telecom chairman Roderick Deane yesterday quashed talk chief executive Theresa Gattung's job was under threat following a full-year profit warning.

"The board has been very satisfied with the performance of the management team and has total confidence in Theresa as chief executive," Dr Deane said.

"My endorsement is straightforward and unequivocal and I can guarantee you it's shared by all of my board colleagues."

Speculation Ms Gattung's tenure was under pressure appeared in an Australian press article after the company warned analysts their forecasts for the June 2003 year profit were too optimistic.

Dr Deane said the company was performing reasonably well in very difficult circumstances.

"The industry is hugely demanding and if you look at the results that we've just published, although the bottom-line earnings were down 3%, if you take out the special factors from a year ago the underlying core earnings [ebitda] are up 8%."

Of even more importance was the strong increase in cashflow.

"So the fundamentals of the business in terms of cashflow and underlying earnings are in good order and probably among the best performing telecommunications companies around the world," Dr Deane said.

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