Telecom Corp, New Zealand’s largest telecoms operator, on Friday said full-year net profit would be down by as much as 18 per cent as increased competition and a tougher regulatory environment slowed growth.

The company, which is being forced to split up by the government, is forecasting net income of NZ$700m to NZ$730m in the year to June 30 2008, compared to the previous year’s adjusted net earnings of NZ$856m.