Telstra's Full-Year Profit Falls 8pc to $3.6 Billion as NBN Rollout Erodes Business
Telstra has seen its full-year profit fall 8.4 per cent to $3.6 billion as the impact of the NBN rollout and competition for mobile customers erode the company's bottom line.
Despite those pressures the company managed to keep sales revenues flat at $26 billion.
The results were ahead of market expectations.
Telstra chief executive Andy Penn said the impact of things like the NBN was a worldwide phenomenon and was having an enormous impact on business.
"Wholesale prices have risen, meaning we and other industry participants are facing a fixed-line market where reseller margins are rapidly reducing," he said.
"At the same time, competition in the mobile market is increasing with the expected entrance of a fourth mobile network operator."
As flagged earlier, Telstra cut its full-year dividend to 22 cents, from 31 cents last year.
Mr Penn said the challenging environment of the past 12 months showed little sign of easing.
"These competitive pressures are playing out in our financial performance and we expect the challenging trading conditions experienced in 2018 to continue in 2019," he said.
Telstra has accelerated its cost-cutting program to $2.5 billion by 2022, with $1.5 billion worth of costs to be stripped from the business in the next two years.
Central to that program was the previously announced shedding of 8,000 jobs over the next three years, including removing two levels of management.
The number of plans on offer will be stripped down from an unwieldy 1,800 to just 20.
That slimming down will incur restructuring costs of $600 million this year.
Telstra also intends to sell around $2 billion worth of property and assets in its campaign of shrinking to growth.
It has announced plans to split the company in two, creating a separate company based on its $11 billion infrastructure assets.
"The organisation we are becoming will look vastly different to the one we are today," he said.
"Our workforce will be a smaller, knowledge-based one with a structure and way of working that is agile enough to deal with rapid change."
Mr Penn said Telstra had so far absorbed $1.4 billion of the $3 billion revenue "black hole" created by the NBN broadband roll out crunching fixed line earnings which on a pre-tax basis are down almost 35 per cent.
Despite the challenges, Telstra did manages to build its customer base, adding 340,000 mobile users, 135,000 retail bundles and 230,000 wholesale mobile services to business.
Other key results included:
- Fixed line revenue -9pc to $5.8bn
- Mobile revenue +0.4pc to $10.1bn
- Network Application Services revenue +8.6pc to $3.6bn
- NBN +770,000 customers to 1.95 million or 51pc of the market
The market welcomed the fact there were no more nasty surprises and the results were slightly ahead of forecasts with shares jumping 2.8 per cent to $2.97 in early trade (10:30am AEST).
- IAM developer - Saviynt
- United Kingdom
- Upto £60,000 plus benefits
IAM developer/ Consultant is required for a global consultancy who are looking to expand their deployment team within the UK Looking for a IAM developer who has experience with at least one of the following vendors Saviynt, Clearskye, Beyond Trust or Okta You will be part of a deployment team, involved in a number of high profile projects Key duties will be: implement IAM solutions to ensure secure access to applications, systems, and data for authorized users. This may involve integrating technologies and standards such as SAML, OAuth, LDAP, and RBAC. Conduct IAM audits and assessments: to identify vulnerabilities, gaps, and areas for improvement. Provide IAM support and troubleshooting and resolve incidents related to user access, authentication, and authorization.
- Lead Cyber Security Incident Response Consultant.
- United Kingdom
Seeking skilled and passionate UK-based individual for a Lead Cyber Security Incident Response Consultant opportunity 3 core skillsets for the role Hands on technical incident response (triage and planning). Business consultancy (engaging with clients). Commercial awareness. Being able to engage in business growth conversations. Consultancy experience is an essential as it the ability to visit clients and the office. Additional experience will include, but not be limited to: Developing incident response strategies, guides and procedures for effective incident handling Proactive and reactive defense plans based on cyber threat actors' techniques Offering guidance, supervision, and fostering opportunities for team development Significant career development opportunities for the right individuals.
- OUTSIDE IR35 Contract- Functional tester- SC clearance Microsoft Windows Server
- Outside IR35 contract
Front End Functional tester with SC clearance needed for an Outside IR35 project. Current valid SC clearance is required Experience with functional testing with exchange, sharepoint, SQL and other applications relating across a windows server Migration to 2019. Must be able to get to Central London 3 days a week. Jira, Wiki documentation and automation experience highly desirable.
- ForgeRock Consultant- UK
- United Kingdom
- Upto £100,000 plus benefits
ForgeRock Consultant/ Architect is require for niche consultancy who are looking to expand their presence within the UK/European Market Looking for a lead IAM architect, ideally with ForgeRock experience but would consider other vendors, But looking for someone who is able to advice and consultant with Clients but have the implementation background so they can get involved in projects as and when needed. Key duties will be: Provider IAM consultancy to clients, with a focus on ForgeRock Product stack ·Responsible for the design and implementation of ForgeRock solutions ·Install and configure ForgeRock stack to meet customer authentication and authorization requirements, ·Design and implement OAuth2 protocol using ForgeRock OpenAM, ·Design and develop OpenAM custom authentication modules, ·Configure ForgeRock stack to protect RESTful API, ·Troubleshoot and support ForgeRock IAM stack. This is a great role to join a niche play as they look to kick of their European expansion