Shares in Telecom have surged more than 4.41%, despite the telecommunications company announcing a big drop in its full year profit.
Telecom announced a profit of $166 million in the year to June, just over half the previous year, due to a writedown in the value of its copper-based network.
Excluding one-off items, underlying profit rose 2% to $388 million.
Chief executive Paul Reynolds says jobs were axed, credit cards cut up and some contracts were brought back inhouse to achieve $195 million in cost reductions.
Dr Reynolds says there will be more cost-cutting to ensure the company is more efficient as it prepares to split into two separate companies.
Shares in Telecom closed the day at $2.72 on Friday.
The company declared a higher quarterly dividend of 7.5 cents and a special 2 cent dividend.
