Telstra on track to hit full year targets as it releases first half results

18 Feb 2016

Publishing its financial results for the six months ended 31 December 2015, Australia’s Telstra has said it is on track to meet its full year guidance.

In the second half of 2015 Telstra saw a 9.1% increase in reported total income to AUD14.194 billion (USD10.7 billion), while reported EBITDA was up 1.7% year-on-year at AUD5.410 billion and net profit after tax was relatively flat, climbing by just 0.4% to AUD2.093 billion. Capital expenditures for the period stood at AUD2.073 billion, representing an increase of 20.0% against the corresponding period a year earlier, with the company saying ‘much’ of the expenditure was being spent on the extension of its mobile broadband infrastructure.

Revenues from mobile services in the six months to end-December 2015 totalled AUD5.526 billion, up from AUD5.328 billion a year earlier, with customer numbers increasing to 16.9 million at that date, compared to 16.4 million at end-2014. By comparison, turnover from the company’s fixed line services declined by 1.4% y-o-y to AUD3.564 billion, with a 6.7% annual increase in fixed data revenue (to AUD1.254 billion) failing to offset a 7.6% annual decline in fixed voice turnover to AUD1.772 billion. A similar pattern was reported in operational terms, with retail fixed voice customers declining by 4.1% y-o-y to 5.9 million, while retail fixed data accesses rose by 7.3% to 3.3 million.

Commenting on the performance in the first half of the 2016 fiscal year, Telstra’s chief executive officer Andrew Penn said: ‘Our results have been achieved against increased mobile competition and acceleration in the NBN multi-technology model roll out. We have continued to innovate and develop products and services to meet changing customer preferences and expectations in our fixed and mobile businesses.’

Australia, Telstra (incl. Belong)