Telstra sees sales growth

20 Oct 2004

Australia’s dominant phone company Telstra has reported its largest quarterly jump in sales for over three years. The telco saw revenues rise 4.2% year-on-year to AUD5.24 billion (USD3.8 billion) in its first quarter to the end of September, with domestic sales up 3.9% to AUD4.86 billion. Telstra’s CEO Ziggy Switkowski has committed himself to achieving 4% growth in domestic sales by 2006. The company will not announce profit figures until early next year when its interim results are released; according to Bloomberg, share prices have fallen back 2.5% this year amid fears that the sales growth will come at the expense of profitability.

Although sales at Telstra’s fixed line division fell 1% to AUD2 billion, mobile and internet services had a successful quarter. Mobile revenues were up 8.3% to AUD1.02 billion; subscriber numbers increased 14.1% year-on-year to 7.7 million. Income from internet services jumped 31% to AUD310 million, with the number of broadband customers rising from 439,000 to one million over the past twelve months. Demand has been fuelled by price cuts which have seen broadband packages available for as little as AUD29.95 a month.