Kiwi Telecom exec takes on travel

A report in The Press says that former Telecom executive Kevin Kenrick has joined the House of Travel as its new chief executive, with Kenrick credited with turning around the slide in Telecom’s mobile business against global competitor Vodafone.

Kenrick will lead 1100 staff based in 90 HOT outlets, recently announcing his resignation from Telecom, one of several of Telecom’s old guard to announce they are departing as the Government implements sweeping regulation of the country’s biggest telephone company.

Kenrick was on a more than $1 million salary package at Telecom, but he’s not saying what HOT will pay him.

Telecom’s 2007 annual report shows Kenrick’s total package was $1.149m.

HOT founder and managing director Chris Paulsen would not disclose the new salary package, but Paulsen said that top staff salaries were partly incentive-based. Kenrick will take up his HOT position on February 1.

Kenrick said he intended to use his strong marketing, branding and corporate background in the new chief executive role. “I’ve always been excited about the opportunity to lead an organisation, and this (role) is one that’s almost custom-built in terms of things that are important.”

HOT said it ranked in the top 10 privately-owned companies in the country for turnover. In 2007, HOT was expecting turnover of $800m with projected figures of $925m for 2008.

That compares to Telecom’s revenues of $5.562 billion in the year to June 30, 2007.

HOT had achieved sales growth of 20 per cent year on year for the past four years, and a strong multi-channelled approach including increasing sales via the internet, Kenrick said.

“The one thing that Chris and I want to do together is make sure (House of Travel) continues to grow and if anything we can accelerate that.”

His work with large listed corporates would provide important input for his work at HOT in such areas as performance management and the role of the board.

“House of Travel is a significant organisation that would actually benefit from some of the positive aspects of that without actually being captured by the compliance regulation that comes with that – we really do get the chance to get the best of both worlds.”

After a stint at Lion Breweries, Kenrick joined Telecom in 1999 as sales and marketing manager for Telecom’s internet service provider (ISP) Xtra.

But Kenrick said it was as general manager of the company’s mobile business that he made his greatest impact.

“The one I got enormous satisfaction out of was being part of that team in the mobile area because it was something that really was broken and we were actually able to turn that around,” Kenrick said.

Paulsen said the appointment meant the group would remain split between Christchurch and Auckland where he and Kenrick would work side by side. Paulsen will also take on a newly created job as executive deputy chairman of the HOT Holdings board.

A model for the structure was Greg Muir’s move in 2004 into Pumpkin Patch to work alongside managing director Maurice Prendergast, Paulsen said.

“The two of them work very co-operatively, and I see it the same way. I have the background and knowledge and skills from the travel industry and he (Kenrick) brings a huge amount of corporate expertise.”

Kenrick had been attracted to the private ownership structure of HOT which would give him more freedom without having to fit in with the disclosure requirements of a listed company, Paulsen said.

“He did a wonderful job with Telecom around their mobile business. Of course one of our biggest, most competitive areas of our business right now is online – he’ll add huge value in that area.”

Report by The Mole from The Press