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).
- Senior Cyber Risk Consultant, UK - Remote first- Exclusive
- United Kingdom
- Depended on experience.
Cyber Security Risk Consultant to join specialist, people first security consultancy. WARNING if you want a large, slow moving, high politics, high travel security consultancy that demands their a pound of flesh this is NOT for you. Client focused opportunity. Prior consulting experience is essential within Cyber Security. Experience working with businesses to identity and make recommendations to mitigate cyber risk. Some of the nice to have certifications. CRISC, ISO27001 Lead implementer, CISA, CISM, CISSP UK based - remote first mentality. (With some travel) Training budget Unlimited holiday Looking to interview immediately Unable to offer sponsorship.
- identity access Management Consutlant
- Upto £80,000 plus benefits
An Identity & Access Management Consultant is needed for an expanding business based in the United Kingdom. (Remote role with monthly office meet ups) The Identity & Access Management Consultant will be responsible for the technical design and implementation of Identity & Access Management/IAM products for a wide variety of clients. Deliver bespoke end-to-end consultancy service to our clients, from gathering requirements through to implementation. Work in a close team designing, developing, and implementing first-class IAM solutions. Manage client relationships, working closely with key stakeholders to continually evaluate business requirements and ensure the highest quality solution delivery. If you are interested we are looking for an individual with Previous experience working within the IAM or CIAM field is essential, Strong knowledge with SAML and Oauth and ideally OpenID Previous experience from any of these technologies: One Identity, SailPoint, Saviynt, Ubisecure, Ping Identity, would be advantageous
- 17'5 NOT 4 7R4P | Pen testing Lead 100k++
Lead Penetration tester wanted please. - This is however a Master level as appose to padawan. 1. 100k+ for the skilled individual. 2. Research / training time 3. Hybrid role- 3 days at home 2 in the office with the team in London. (11am - 16:00) 4. Exclusive opportunity. So yours to hear about if you are quick. Infrastructure and Web application / red teaming pen testing experience Someone that can scope, deliver and speak to clients.
- It's Pen Testing, The good, the bad and the ugly
- United Kingdom
A new lead Pen Testing opportunity, AND slightly different from the usual you may see. The good, the bad and the ugly… Lalalalala la laa laaaa The GOOD 1. £90-110k for the skilled individual. 2. Research / training time 3. Hybrid role- 3 days at home 2 in the office with the team in London. (11am - 16:00) 4. Exclusive opportunity. So yours to hear about if you are quick. The bad 1. You have to apply or email me so we can speak. 2. 17'5 NOT 4 7R4P or click bait The ugly 1. It’s only ugly if you don’t reply and someone else you know gets it. Infrastructure and Web application / red teaming pen testing experience Someone that can scope, deliver and speak to clients. Apply today for more information.