Telstra shares, dual listed on the ASX and NZX (TLS), were down 9.69% in late afternoon trading following a weak full-year result, in line with guidance, and a pessimistic outlook.Net profit after tax for the year ending June 30 declined by 4.7% to $A3.88
Telstra shares, dual listed on the ASX and NZX (TLS), were down 9.69% in late afternoon trading following a weak full-year result, in line with guidance, and a pessimistic outlook.
Net profit after tax for the year ending June 30 declined by 4.7% to $A3.88 billion.
Revenue declined 2.2% or $558 million to $24,813 million
Ebitda fell by 0.9% or $A101 million to $A10.84 billion.
Free cash flow increased $A1.9 billion to $A6.2 billion
Telstra’s fully-owned and operationally merged New Zealand subsidiary, TelstraClear, saw ebitda slip from 2009’s $NZ159 million to $A157 million - a mere 1% of its parent’s underlying earnings.
More pain ahead
For the year ahead Telstra said it “expects a high single digit percentage decline in Ebitda”.
“Investments and changing product mix” are blamed for the predicted earnings fall.
Revenue would be “flattish”.
New-fangled gadgets find few buyers
Like all telcos, Telstra is battling a steep decline in its traditional voice line or “PSTN” business, with profit from new business failing to grow fast enough to make up for the loss of traditional profit areas.
Telstra had mixed success in its attempts to diversify during its 2010 financial year.
The T-Hub - a Jetsons-like touchscreen that can play video or internet radio or even function as an alarm clock (pictured), and comes with a cordless phone - had gained 40,000 users since its April release.
Telstra's T-Box, a set-top box for internet-delivered TV, a garnered a modest 15,000 users.
TelstraClear is overdue to release a similar set-top box in New Zealand.
BELOW: New areas like mobile and broadband account for a larger share of a shrinking pie (click to see larger version of chart).
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