This report to shareholders is dated 23 August 1999 and is signed on behalf
of the Board by 
 
Peter Shirtcliffe 
Chairman 
 
Roderick Deane
Chief Executive and Managing Director 
Telecom Corporation of
New Zealand Limited. 

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Operating revenues*        NZ$848m +2.7%   
Operating expenses*        NZ$499m -0.4%  
Reported earnings          NZ$202m +6.3%  
Normalised earnings        NZ$199m +4.7%
  
Earnings per share 11.5 cents +6.3%  
Dividend  11.5 cents -  
 
 * before abnormal items 
   
 Return on NZ$1 invested (since listing) 
   
  
   
Compound annual growth rate = 23.2% 
Assumes all dividends reinvested 
NZ$1 invested on 17 July 1991 worth NZ$6.52 on 30 July 1999