Australian fixed line incumbent Telstra has posted a 5.4% year-on-year increase in net profit after tax for its fiscal year ended 30 June 2012 on the back of a 1.1% increase in revenue, in line with its previous forecasts. In the twelve-month period under review Telstra reported a net income of AUD3.424 billion (USD3.5 billion), up from AUD3.250 billion in the previous fiscal year, with total turnover standing at AUD25.638 billion. Earnings before interest, tax, depreciation and amortisation (EBITDA) meanwhile increased by 0.8% against FY2011 to reach AUD10.234 billion.
Looking ahead to the next financial year, Telstra has said that it expects growth to continue, with the company forecasting low single digit total income and EBITDA growth, with free cashflow between AUD4.75 billion and AUD5.25 billion. Capital expenditures are expected to be around 15% of sale over the coming two years.
In the year to end-June 2012 meanwhile, Telstra noted that it had spent approximately AUD3.6 billion, with a significant portion of this having been directed towards the rollout of its fourth-generation Long Term Evolution (LTE) network. With the operator claiming to have the widest LTE coverage in Australia, with more than 1,000 base stations in operation and covering approximately 40% of the population, Telstra also revealed that since launch more than 375,000 customers have signed up for its 4G services. Total mobile accesses meanwhile rose to 13.790 million, representing a 12.8% increase from the 12.223 million customers on Telstra’s books a year earlier. In the fixed broadband sector the telco gained around 203,000 net customers to bring its total to 2.599 million, with such growth helping to offset continued declines in fixed voice connections, which stood at 8.057 million at end-June 2012, down almost 4% year-on-year.
David Thodey, Telstra CEO, said of the full-year results: ‘We have seen two years of significant customer growth as our strategy continues to bear fruit. This has translated into strong financial results despite tough domestic and international economic conditions.’