Vector profit down 4.5pc

By NZPA

Monday 16th December 2002

Auckland-based lines company Vector saw a 4.5 percent fall in net profit after tax to $42.04 million for the six months ended September.

Vector, which has bought UnitedNetworks' businesses, also saw interim earnings before interest, tax, depreciation and amortisation drop by about $10 million to $79 million.

Chairman Michael Stiassny said in a statement today that while earnings were ahead of budget, they were down due to a reduction in pricing and a planned increase in the amount of network maintenance.

The half-year result was recorded prior to the company's acquisition of UnitedNetworks, making Vector the largest network operator in New Zealand.

Mr Stiassny said the integration of the two companies' operations was proceeding to plan.

Earlier this month, ratings agency Moody's gave Vector the thumbs up on its debt ratio and confirmed a strong rating for UnitedNetworks' medium term notes issue.

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