Adjusted operating revenue and other gains were NZ$1.316 billion, down 2.9 per cent year on year.

Detailing the results, Telecom's Chief Executive, Paul Reynolds, said the New Zealand market continued to reflect the global trend of declining overall telecommunications revenues.

"Growth in services such as mobile, broadband and ICT is only partially offsetting declines in traditional fixed line and voice services," he said in an ASX report on the results.

"However, the rate of fixed access line loss and fixed to mobile substitution remains somewhat less in New Zealand than many overseas countries, probably reflecting the unusually wide availability of free local calling from Telecom."

Reynolds also noted that despite issues with its earlier in the year, it added some 127,000 new subscriptions during the quarter.