Telstra reports drop in profit for H1 2018, despite revenue increase

15 Feb 2018

Australia’s Telstra has published its half-year results for its current fiscal year (which ends 30 June 2018), which it said showed ‘increased subscriber numbers on mobile and fixed, a reduction in underlying core fixed costs and progress being made under its strategic investment programme.’ In the six months ended 31 December 2017, Telstra recorded a ‘total income’ of AUD14.51 billion (USD11.4 billion), up from AUD13.70 billion in the corresponding period a year earlier, while ‘total revenue’ was AUD12.91 billion, up 0.8% year-on-year from AUD12.81 billion. In terms of a segmental breakdown, the company noted that its ‘Consumer and Small Business’ unit accounted for just over half of its total income – AUD7.42 billion, roughly unchanged from AUD7.39 billion a year earlier – while its ‘Enterprise’ and ‘Wholesale’ divisions generated AUD3.94 billion and AUD1.41 billion, respectively.

Meanwhile, although Telstra said a productivity programme had delivered an AUD249 million reduction in underlying fixed core costs, operating expenses for the period under review were AUD9.42 billion, up 10.6% y-o-y. EBITDA totalled AUD5.06 billion, representing an annualised decline of 2.5%, while profit for the half was AUD1.68 billion, compared to AUD1.79 billion in H1 2017.

In operational terms, at the end of December 2017 Telstra had 17.6 million retail mobile subscribers on its books, up from 17.4 million six months earlier, of which 7.7 million were post-paid. Retail fixed data accesses were also up, albeit it only marginally, with the telco reporting net adds of 21,000 over the six-month period to bring the total to 3.5 million at the end of 2017. By comparison, fixed voice customer numbers continued to decline, with the company shedding 243,000 lines in the half to bring down the total to 5.1 million.

Australia, Telstra (incl. Belong)