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).
- ISO27001/PCI Information Security Consultant
- Up to £65,000 Base
ISO27001/PCI Information Security Consultant with audit and advisory experience is needed for a client-facing opportunity with a Cyber Security company in London. Experience with ISO27001 is essential, PCI is highly desirable. Activities of the role will include, but not be limited to providing advice to clients, Gap analysis, Risk assessment, analysis, ISO27001 Audits. Experience taking a client through to iso 27001 certification is highly desirable and preferable. This Cybersecurity consultancy, who are dedicated to improving and investing in their client's businesses and employees careers, are looking for a security consultant due to expansion. All the training and development will be provided to helping them specialise into the PCI industry / Security advisory industry. Ideal certifications ISO27001 Lead Auditor, ISO 27001 Lead implementer, PCI ISA. Aspiring PCI QSA. The ability to SC Clearance is essential. MUST be UK based and realistically able to commute to London. Structured career path, technical training, diverse and interesting clients available. ISO70001 Lead Auditor, ISO 27001 Lead implementer, PCI ISA. Aspiring PCI QSA Contact me on firstname.lastname@example.org or 07884666351 or 02086634030 Ref CH7584 (Information Security Jobs, Security Consultant Jobs, Information Security Consultant Jobs)
- Healthcare Business Development Manager
- Up to £60,000 Base + UNCAPPED Earnings
Healthcare Business Development Manager We are currently working with a multi-vendor IT solutions provider who are looking for a Business Development Manager who will be responsible for selling into the Healthcare Industry in a new business focussed position. The Healthcare Business Development Manager will have Current/Recent experience working for an IT managed services business/solutions provider. Experience delivering £150,000+ GP a year Current/Recent experience winning new healthcare accounts (all accounts won are kept) Flexible working is provided and also uncapped earnings. Apply for more information or call Peter Georgiou on 02086634030. Unfortunately, our client are unable to provide sponsorship so candidates must be UK based (commutable to London). Ref PG7577
- Cyber Incident Response specialist
- Up to £75,000 Base
Cyber Incident Response specialist is needed to join a global consultancy whose cyber business unit are continuing to their investment in the growth of their team. The Cyber Incident Response specialist role is client-facing that will join an award-winning team that deliver varied, interesting and often challenging work to a wide range of prestigious clients. The Cyber Senior Incident Response MUST have current experience taking a client through the complete IR / triage process and have a blend of both technical and commercial (identifying and developing new business opportunities within a client) Proactive Incident response, forensics and Ediscovery experience is a MUST. An individual must be London commutable and happy to travel, often internationally. Key attributes should also include; stakeholder engagement, mentoring of team members, a collaborative working style. Technical experience must include; demonstrable experience within an cyber incident response, Forensic, cyber etc. Additional certifications could / should include GIAC certified (Intrusion analyst, incident handler, forensic handler) Any of the following are very desirable also CREST Certified Network Intrusion Analyst (CCNIA) CREST Certified Host Intrusion Analyst (CCHIA) CREST Certified Malware Reverse Engineer (CCMRE) CREST Practitioner Intrusion Analyst (CPIA) Career development and the opportunity to influence, apply today for more information or call Chris Holt on 07884666351 or 02086634030 or email email@example.com Unfortunately, our client are unable to provide sponsorship for this opportunity. Candidates must be UK based. Ref: CH7578
- Sales Engineer (Telecoms, Ethernet, SDH, MPLS, IP)
- Up to €75,000 + Commission
Sales Engineer / Presales Consultant is needed for this Global Tier 1 carrier. You will be working with Enterprise customers helping to design solutions that solve your their business needs. You will be responsible for working alongside sales providing presales technical consultancy around my client's solutions base. You will be responsible for providing support for new business opportunities in terms of responding to RFIs & RFPs, understanding customer network requirements, high-level network architecture & design (including supplier selection on a global basis) and technical handover to network implementation teams. This is a great opportunity to join a global player who are growing their France based teams. You will require a successful track record in the telecommunications arena ideally from a global tier 1 ISP or network provider, with a demonstrable track record in designing complex enterprise solutions. A Sales Engineer needs to be technically astute and has had experience in the design, presentation, and implementation of Wide Area Networks (WAN). They need to understand a range of Layer 1, 2, and 3 technologies (Ethernet, SDH, MPLS, IP, etc) and build a solution based on the best technology to meet a customer’s requirements. In addition, they should have an understanding and experience in supplementary telecommunications services such as VoIP, Video Conferencing, Cisco and Riverbed hardware, and Security If you have any questions about this role, give us a call on 0044208 663 4030 or contact/send your CV to firstname.lastname@example.org Ref: RA7275