Telstra reduces FY capex

25 May 2006

Australia’s incumbent telco Telstra Corp has reduced its capital expenditure forecasts for the fiscal year ending June 2006 to between AUD4.1billion and AUD4.4 billion (USD3.1 billion-USD3.3 billion), down from between AUD4.8 billion and AUD5.1 billion. Telstra said a number of factors drove the revised guidance, including lower costs for property, plant and equipment as an outcome of recent procurement contract negotiations, as well as improved capital labour productivity across all projects. It said AUD200 million of the reduction would be deferred to the June 2007 fiscal year.

Australia, Telstra (incl. Belong)