Thursday, 10 February 2011

Telstra reports encouraging sales momentum, confirms guidance, maintains dividend, reaches NBN milestone

Telstra reports encouraging sales momentum, confirms guidance, maintains dividend, reaches NBN milestone

The reported results for the December 2010 half year are:

Sales revenue declined 0.5% or $60 million to $12,263 million

EBITDA declined by 13.9% or $737 million to $4,580 million
EBIT declined by 24.1% or $756 million to $2,376 million
Net Profit After Tax declined by 36.0% to $1,207 million
A capex to sales ratio of 11.8%, with $1,451 million invested in the half
On a guidance basis -

Sales revenue declined 0.5% in-line with guidance of a flattish result
EBITDA declined by 12.5% in-line with guidance of a low double-digit decline (excluding a $59 million net gain on the sale of SouFun, KeyCorp and Telstra UK and $133 million impairment in Octave investments)
Telstra’s initiatives to attract new customers resulted in:

919,000 additional mobile customers, including 297,000 additional postpaid handheld and 505,000 additional wireless broadband subscribers
139,000 additional fixed broadband customers, compared with a decline of 30,000 in the first half of 2010
214,000 additional T-Box™ and T-Hub™ services
420,000 more customers on bundled multi-product plans.

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