Subscriber growth bolsters Telstra’s first-half results

9 Feb 2012

Australian fixed line incumbent Telstra has released its financial results for the six months ended 31 December 2011, revealing a solid performance across the board, helped in part by continued customer growth.

In the first half of the telco’s 2011/12 financial year it saw net profit rise by almost 23% compared with the corresponding period a year earlier, to reach AUD1.47 billion (USD1.59 billion). Total revenues, meanwhile, increased by 1.1% year-on-year to AUD12.42 billion, with Telstra noting in particular 10.9% annual growth in turnover from mobile services, which rose to AUD4.39 billion. In other key product categories Telstra revealed that retail fixed line broadband revenue had improved by 5.8% against 1H10/11 to reach AUD835 million, while IP access revenues stood at AUD514 million, up 8.9% year-on-year. Fixed line voice revenues, however, continued to decline, falling 9% against the year-ago period to AUD2.49 billion. Earnings before interest, tax, depreciation and amortisation (EBITDA) for the six-month period was AUD4.75 billion, a 3.7% annual increase. On the back of the results Telstra confirmed its full-year forecasts, reiterating that it expects to see low single-digit revenue and EBITDA growth in FY2011/12, with free cashflow of between AUD4.5 billion and AUD5 billion. Capital expenditures in the fiscal year are expected to be around 14% of revenues.

Highlighting its customer growth, Telstra noted that over the last six months of 2011 it had added: 958,000 domestic mobile customers, including 338,000 post-paid handheld and 436,000 mobile broadband customers; 106,000 fixed broadband customers; and 206,000 customers on bundled multi-product plans.

Commenting on the six-monthly performance, Telstra CEO David Thodey noted: ‘Last year we recorded one of our best years for customer growth. This momentum has continued into the first half of fiscal 2012 … Our superior networks and competitive offers are being recognised and valued by new and existing customers.’

Australia, Telstra (incl. Belong)