Telecom’s annual meeting was a poorly attended and low key event with most of the emphasis on the newly arrived Chief Executive Simon Moutter.

Moutter, who is in his seventh week at Telecom, is undertaking a major strategic review for the board which will be completed in early 2013.

The new CEO gave a passionate address stating he was “hugely ambitious for Telecom, and I expect everyone who works with me to be just as ambitious”.

He went on to say that “our greatest opportunity is to repurpose the company as a customer focused, agile provider of information communication and technology services which make a huge difference to people’s lives and businesses”.

“And there is no question in my mind that when we are successful in this mission, we will also be delivering on behalf of you, our shareholders”.

Unfortunately the board gave no operating update or profit or dividend guidance for the June 2013 year. Directors seemed to be saying that the company is now in the hands of Moutter and we have complete confidence in his ability to deliver.

Hopefully they are correct because Telecom will have to reinvent itself as a successful consumer orientated and marketing organisation to reverse its continuing earnings decline.

Brian Gaynor

Portfolio Manager

Milford Asset Management holds Telecom shares on behalf of clients.