Telstra Bounces back - UPDATED

Stuart Corner
Thursday, 11 August 2011 09:25

IT Industry - Listed Tech

Telstra's full year results show second half improvements on most performance indicators, compared to the six months to 31 December.

Second half revenues were up 1.8 percent on the corresponding period in FY10, to give a full year growth of 0.7 percent to $25.1m. In the first half they were down 0.5 percent. Second half EBITDA was up 0.7 percent compared to a 13.9 percent drop in H1, giving a 6.4 percent drop for the full year to $10.2m. NPAT was down 16.8 percent for the full year to $3.2m with a flat second half compensating for a 35.6 percent first half drop.

Over the year Telstra increased the number of services with bundles from 309,000 to 1.04 million. The installed base of T-Hub and T-Box grew from 21,000 to 385,000 over the year, with 25 percent of new broadband bundle customers taking a T-Box.

Telstra added 914,000 mobile broadband services during the year taking the total to 2.58 million. Total mobile services in operation grew to 12.2 million and fixed broadband to 2.4 million.

CEO David Thodey claimed: "This result demonstrates real progress in our initiatives to improve customer satisfaction, grow our customer numbers, simplify the business and develop growth opportunities." Thodey said that the company's simplification initiatives had reduced normalised domestic labour and labour substitution expenses from $1.145b in Q1FY11 to $1.068b in Q4, accompanied by an increase in productivity.

He said the company's strategy to move up the value chain was paying off with growth in revenue from Network Applications and Services (previously Business Services and Applications) of 10.7 percent over the year to $1.77b and "record sales in unified communications and conferencing."

Telstra said: "This was driven by strong growth in unified communications of 31.0 percent to $156m driven partially by the acquisition of iVision Pty Ltd on 31 March 2011 (contributing $18m of revenue), and managed data networks growth of 8.7 percent to $213m."

The news from Sensis was not so good, despite a 35 percent growth in use of Yellow Pages Digital. Sensis' revenue declined by 6.4 percent to $1,787m and EBITDA declined by 9.4 percent to $993m.

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