Telstra Posts Gain in Annual Net Profit

Submitted by Jim Thesiger on 13 August, 2009 - 13:41

The largest telecommunications carrier in Australia, Telstra (TLS) has recorded a 10.3 percent gain in its annual net profit. The net profit was about $4.073 billion for the year that ended on June 30 higher from the earlier year’s profit ($3.692 billion). The company has refined its guidance for the year 2009-10 earnings since it is preparing for an extended session of relatively sluggish economic growth. Telstra, which is currently operating under its new chief executive David Thodey posted impressive earning, growth and free cash flow for the 2008-09 year sustained its dividend. Company shares were underperforming in earlier trades with 3 cents or 0.8 percent down at $3.58.

In a statement, Mr. Thodey mentioned that the company is in a very strong position to face the upcoming challenges. Telstra saw a jump in its revenue that went up to $25.507 billion. This was below the guidance range of about 3 to 4 percent. EBITDA went up for 5.1 percent to $10.984 billion. Earning before interest and tax (EBIT) raised 5.3 percent to $6.558 billion in against 3 to 5 percent guidance.

Telstra had forecasted a revenue growth between 3 to 4 percent in 2009-10 according to its earlier five-year plan. The chief executive of the company mentioned that they were expecting a slow economic growth. However, the company has a line of new and innovative products to launch which is expected to increase the market demand and will improve productivity for the company he added. Mr. Thodey also mentioned that in an intense competitive environment, the company will continue with its efforts to differentiate its service by their offerings and through delivering value to the consumers. Explaining Telstra’s position in the national broadband network, Mr. Thodey stated that his side is now engaging constructively with both NBN and the federal government. He said, Telstra was determined to protect its shareholders and at the same time to develop a world class infrastructure of communication for Australia. While Telstra took a hit of drop in mobile voice calls and fixed line sector, Mr. Thodey stated that there was a sign in the market that customer growth is slowing in fixed broadband take up.