Thursday, August 10, 2006

Telstra Reaches 1.48 million Broadband Users

Telstra announced a profit after tax of AUD$3.18 billion for the financial year ended 30 June 2006, a decrease of $1.13 billion or 26.2 percent on the prior year. Earnings before interest and tax (EBIT) declined by 20.7 percent or $1.44 billion to $5.50 billion, at the better end of the market guidance decline of 21 to 26 percent.

Some highlights:

  • Total income (excluding finance income) grew by 2.9 percent or $658 million to $23.10 billion due to increases in broadband, mobiles, Sensis, IP solutions, inter-carrier services and pay TV bundling, offset by a decline in revenues from PSTN, specialized data and ISDN products. Sales revenue grew 3.9 percent in the second half, more than double the first half growth rate, and 2.7 percent for the year.

  • Internet and IP services revenue grew $530 million or 38.5 percent to $1.91 billion, driven by retail broadband revenue growth of $267 million or 57.7 percent and increased use of data services by business customers.

  • Telstra added 303,000 retail broadband subscribers in the second half and 620,000 for the full year, bringing the subscriber base to 1.48 million. The company holds 44% of Australia's broadband market.

  • Total mobile goods and services revenue growth was 6.1 percent or $284 million to $4.97 billion. Construction of the new 3G 850 network is ahead of schedule and more than three-quarters completed.

  • PSTN products revenue was $7.48 billion, a decline of 6.7 percent or $540 million for the year, with a decline of 7.6 percent in the first half and 5.8 percent in the second. There has been a general reduction in PSTN volumes and yield declines due to competitive pricing pressure and continuing customer migration to other products. Since June 2005, Telstra has lost 270,000 retail lines, while wholesale gained 90,000 lines.

  • Telstra's total workforce has been reduced by 3,859 full time equivalent staff, contractors and agency staff excluding the CSL New World merger (3,262 allowing for the merger).


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