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 shrinking
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."
Challenges
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).
Source: abc
Latest Jobs
-
- Security Auditor / 3rd Party Assurance. London. End user
- London
- 60000
-
Security Auditor / 3rd Party Assurance. London. End user The Security Auditor / 3rd Party Assurance role has two key functions. Manage the ongoing assessment of new and existing 3rd party suppliers to ensure they meet the internal policies / controls. (Reassessment etc) Internal Auditing across business to ensure various departemnt / operations are compliant and inline with internal ISMS etc. ISO 27001 internal audit experience, creation of audit reports experinece essential. This is an internal business so broad experience across a multiple technology environment (cloud and on prem) is highly desirable. MUST be able to engage and work with senior stakeholders in an often faced pace environment. ISO27001, NIST, CISSP, CISA Risk assessment experinece needed This is a permanent role.. Blend of technical and consultative approach needed. This role will require someone to travel to London a few days a week once lock down permits and their offices fully reopen. All details kept in confidence. Apply today to find out more.
-
- Head of Penetration Testing, UK based, Flexible location.
- United Kingdom
- Upto £100,000 plus excellent benefits
-
Head of Penetration Testing needed to join a security consultancy that are delivering client facing penetration testing services around Web app and Infrastructure. Looking for someone hands on that is able to manage a highly skilled technical team of testers. 50-60% of the time is expected to be hands on, other duties will include, but not be limited to; leading and managing the day to day running of the team, mentoring, team upskill, recruitment, reporting, escalation, process improvement etc. Flexible location although south east is preferred. Anyone with Check / CREST experience is highly desirable. MUST be able to achieve SC clearance. UK based role. All details kept in confidence.
-
- Technical Security Analyst. Immediate opportunity,
- Newcastle upon Tyne
- 48000
-
Technical Security Analyst. Immediate opportunity, Technical Security Analyst needed to join a specialist security team. This role will require travel into the office in a hybrid model once industry returns back to the working environment. The Security Analyst must be commutable to Newcastle upon Tyne. This is an Immediate opportunity. An essential requirement of the role is to be able to engage with internal stakeholders so a blend off technical hands on analytical and consultative communication skills. The role will include, but not be limited to; managing and handling incidents end to end, log review, incident analysis, escalation, vulnerability assessment, Automation, Malware Analysis, Threat intelligence, etc All details kept in confidence. https://calendly.com/chris-holt/call-with-chris-holt-dcl-search
-
- Security Analyst, London. Financial Services. End user.
- London
- 55000
-
CH7885. Security Analyst, London. Financial Services. End user. Immediate role. £55,000 Security Analyst needed to monitor and manage a security suite of tools within Financial Servicecs end user . The Security Analyst will be responsible monitoring, configuring, fine tuning, incident management and generally improving the security tool capability. Specific experience with CyberArk, Tripwire Log Center and Tripwire Enterprise is highly desirable). Current experience with Vulnerability management and penetration testing is highly desirable. Specifically the ability to effectively manage 3rd party pen tests. You will be working within a specialist security team reporting to the CISO. Experience working within a regulated end user environment within financial services is highly desirable. This role will run a hyrbid working schedule, partly remote, partly office based in London (once permitted) This is an exclusive role to DCL Search & Selection. https://calendly.com/chris-holt/call-with-chris-holt-dcl-search