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).
- Professional Services Security Engineer
- United Kingdom
Professional Services Security Engineer with current checkpoint experience is needed for the UK focused client facing implementation/migration, configuration position. The role will be utilising the latest versions of Checkpoint, so someone accredited with either CCSA or CCSE, on at least version R80 is ideal. The Professional Services Security Engineer must have current technical implementation experience using Checkpoint, however, I would look at someone with strong firewalling experience around other vendors such as Palo Alto and Fortinet. Being a multi-vendor professional services business, there is scope for this person to receive training and experience within other vendors. This is a UK wide role, the company in question has 2 offices across the UK, however, there is scope for this person to be home based when not on client site. Vendor training and exposure actively promoted.
- eDiscovery / Forensic Consultant, London, £65,000
Senior eDiscovery / forensic consultant needed to join a business is recognised for helping top tier clients across eDiscovery, Forensics, Incident Response, Advisory etc. Known the for quality, consistency of work throughout the world. This individual MUST be London based, client facing with deep technical hands on experience with eDiscovery / forensic tools, techniques and best practice. Hands on experience using Relativity is essential. The position is split between engaging with client stakeholders to provide consultancy, technical engaging to identify, preserve, collect, process, review and produce electronically stored information in litigation and manage / provide support for the other internal business functions. This will include, but not be limited to; manging client engagements, collecting / processing data within Relativity, delivering / providing guidance customisation on reports, advising clients. Any of the following certifications are highly desirable. • Relativity Certified Administrator (RCA) • Relativity Processing Specialist • Relativity Analytics Specialist Travel to client site will be involved. Fluency in multiple European languages is highly desirable. All details kept in the strictest of confidence. Contact me on Chris.email@example.com 07884666351 or 02086634030
- Public Sector Sales Consultant, Cyber, London, 140 OTE +, Uncapped earnings!
- Up to £140,000 OTE
Public Sector Sales Consultant is needed in London as a new hire into a cybersecurity services, solutions and advisory business. Ideally, the Public Sector Sales Consultant should have experience selling cyber solutions, services and advisory but this is not essential. (Training can be provided) What is essential is the sales consultant must have a successful history overachieving against target selling into the Public Sector (Healthcare, Defence, Emergency Services, Government etc.).. This target for this opportunity will be £1.3m. The role will be split in delivering NEW BUSINESS into existing accounts (account management through existing partners, framework, direct etc) and new Logo NEW business. A full suite of solutions is available to the successful Public Sector Sales consultant. More importantly, there is an Uncapped earning for overachievement. A KEY requirement is an ability for the individual to achieve UK security clearance- UK passport holder is a must. There is a strong preference for will be given to those that already have clearance. Training, development, support and a warm inviting team. All details kept in the strictest of confidence. Ref: CH7497
- Partner Sales Director
- Up to €165,000 Base + Double OTE
We are currently working on behalf of a global cybersecurity provider who are currently looking for a Partner Sales Director in Germany. The Partner Sales Director will be responsible for the go to market strategy for current Cyber Security OEM’s and new alliances across EMEA and CALA. Other responsibilities include; Sales strategy development and implementation, Partner development, Sales leadership etc. Experience Required Must have current experience in a sales leadership role specialising in Cyber Security (vendor experience with Cisco, Check Point etc.) Proven sales record of being able to lead, grow teams and exceed expectations. This individual MUST be based in Germany Ref: BD7496 (Partner Sales, Alliances Sales, Cyber Security Sales Jobs)