Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 
OFFON

MarketScreener Homepage  >  Equities  >  AUSTRALIAN SECURITIES EXCHANGE LIMITED  >  Telstra Corporation Ltd    TLS   AU000000TLS2

TELSTRA CORPORATION LTD

(TLS)
  Report  
End-of-day quote. End-of-day quote AUSTRALIAN SECURITIES EXCHANGE LIMITED - 08/23
3.74 AUD   +1.36%
08/15TELSTRA : Creates, Sells Stake in New Property Trust
DJ
08/14Telstra Annual Profit Falls Sharply -- Update
DJ
08/14TELSTRA : Annual Profit Falls Sharply
DJ
SummaryQuotesChartsNewsRatingsCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsOfficial PublicationsSector newsAnalyst Recommendations

Telstra Annual Profit Falls Sharply -- Update

share with twitter share with LinkedIn share with facebook
share via e-mail
0
08/14/2019 | 10:20pm EDT

By Robb M. Stewart

MELBOURNE, Australia--Telstra Corp. (TLS.AU) on Thursday warned of an even bigger hit this financial year from the rollout of the nationwide broadband network after the migration of customers to the government network led to sharply lower profit and saw it slash its dividend.

Still, Australia's dominant telecommunications provider signaled that the 2020 financial year would mark the peak in terms of customers migration to the national network and said efforts to simplify its services portfolio and restructure its operations were making progress.

Net profit fell 40% to 2.15 billion Australian dollars (US$1.45 billion) in the 12 months through June from A$3.59 billion a year earlier, in line with previous guidance and market expectations, Telstra said. Total income from ongoing operations was 3.6% lower at A$27.81 billion, compared with A$28.84 billion a year earlier.

For the second half of the year, the company plans to pay a dividend of A$0.08 a share, including a further special dividend, for a full-year payout of A$0.16. That is 27% lower than dividends the year before.

It was a third straight annual decline in profit for Telstra, and included a headwind for underlying earnings from the rollout of Canberra's NBN of about A$600 million. The hit to earnings in fiscal 2020 is expected to grow to as much as A$1 billion, though Vicky Brady, who took on the role of chief financial officer last month, said that should be the peak and the company was now over the halfway mark with customers migrating to the NBN.

The company also cut A$456 million from underlying costs over the year, taking reductions since fiscal 2016 to A$1.17 billion.

Telstra, which has been listed on the local stock exchange since 1997 and is a leading player across the telecom industry in Australia, has been squeezed by competition and the rollout of the NBN, which effectively renationalized a material part of Telstra's business. To fill the big earnings shortfall, Telstra has cut jobs and is investing in upgrading its networks developing the latest 5G next-generation mobile network.

In May, the company flagged an about A$500 million impairment and write down of older information-technology platforms. It flagged an increase in restructuring costs to about A$600 million as it worked to cut about 6,000 jobs by end-June in an effort to reach a A$2.5 billion cost-cutting target by the end of 2022.

Ms. Brady told The Wall Street Journal that while competition in the mobile segment had been very strong over the last year, the industry is at a point in its cycle where companies are looking at prospects for next-generation 5G technology and on returns on investment.

Telstra is among the first Australian operators to roll out 5G commercially and Ms. Brady said customers were beginning to move on to the new technology.

In an effort to raise up to A$2 billion from its assets, Telstra this week agreed to sell three international data centers in Europe and Asia to private-equity firm I-Squared Capital for about A$160 million.

Write to Robb M. Stewart at robb.stewart@wsj.com

Stocks mentioned in the article
ChangeLast1st jan.
BRADY CORP -3.49% 46.74 Delayed Quote.11.44%
BRADY PLC 0.00% 33.5 Delayed Quote.-48.06%
TELSTRA CORPORATION LTD 1.36% 3.74 End-of-day quote.29.47%
share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on TELSTRA CORPORATION LTD
08/15TELSTRA : Creates, Sells Stake in New Property Trust
DJ
08/14Telstra Annual Profit Falls Sharply -- Update
DJ
08/14TELSTRA : Annual Profit Falls Sharply
DJ
07/23TELEFONAKTIEBOLAGET LM ERICSSON : Ericsson and Telstra complete Australia's firs..
AQ
07/16Australia watchdog says Vodafone misled customers over digital purchases
RE
06/26TELSTRA : The best iPhone 7 and iPhone 7 Plus plans and prices in Australia comp..
AQ
06/25TELSTRA : has massively overhauled its phone plans – no more contracts or ..
AQ
06/19TELSTRA : new SIM-only plans serve up some of the telco's best-ever deals
AQ
06/13TELSTRA : NEP Australia and Telstra deliver world's first trans-Pacific remote p..
AQ
06/11Uber picks Melbourne as test site for flying taxi service
RE
More news
Financials (AUD)
Sales 2020 27 254 M
EBIT 2020 4 449 M
Net income 2020 2 698 M
Debt 2020 16 441 M
Yield 2020 4,30%
P/E ratio 2020 16,7x
P/E ratio 2021 18,5x
EV / Sales2020 2,23x
EV / Sales2021 2,30x
Capitalization 44 443 M
Chart TELSTRA CORPORATION LTD
Duration : Period :
Telstra Corporation Ltd Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends TELSTRA CORPORATION LTD
Short TermMid-TermLong Term
TrendsBearishBullishBullish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus HOLD
Number of Analysts 12
Average target price 3,92  AUD
Last Close Price 3,74  AUD
Spread / Highest target 20,1%
Spread / Average Target 4,71%
Spread / Lowest Target -18,4%
EPS Revisions
Managers
NameTitle
Andrew Richard Penn Chief Executive Officer, Executive Director & MD
John Patrick Mullen Chairman
Robyn M. Denholm Chief Financial Officer & Head-Strategy
Hakan Ericsson Chief Technology Officer
Nora Lia Scheinkestel Independent Non-Executive Director
Sector and Competitors
1st jan.Capitalization (M$)
TELSTRA CORPORATION LTD29.47%30 082
VERIZON COMMUNICATIONS-0.53%231 285
NIPPON TELEGRAPH AND TELEPHONE CORP10.98%87 944
DEUTSCHE TELEKOM AG-0.31%78 050
SAUDI TELECOM COMPANY SJSC--.--%57 606
BCE INC.14.91%41 533