Telecom NZ (ASX:TEL) has significantly lowered its earning guidance for the next three years.
While the company’s guidance for this year was unchanged, the company shaved its FY11 ebitda forecast to between $1.72 billion and $1.78 billion, compared to its previous prediction of between $1.82 and $1.85 billion.
The company is now expecting an ebitda increase of between $20 million and $80 million for the subsequent to years, compared to the between $70 million and $115 million first forecast.
The guidance change is due to adverse regulatory changes, as well as a softening revenue outlook due to price pressures and lower revenue growth.
TEL shares have today fallen 2.34% to $1.670.