Telstra claims ‘turning point in financial performance’ as it publishes full year results

12 Aug 2021

Telstra has published its results for the year ended 30 June 2021, with the company claiming to have achieved a ‘turning point in financial performance’ which ‘builds momentum towards growth’. For the twelve-month period under review, the Australian communications provider generated a total income of AUD23.1 billion (USD16.9 billion), with this representing an 11.6% year-on-year drop, while reported EBITDA decreased by 14.2%, to AUD7.6 billion. Meanwhile, on a guidance basis Telstra said that underlying EBITDA had declined by 9.7% y-o-y to AUD6.7 billion in FY 2021, with this including ‘an in-year National Broadband Network (NBN) headwind of around AUD650 million and an estimated AUD380 million financial impact from COVID’. However, Telstra did record an improvement in net profit, which increased by 3.4% on an annualised basis to AUD1.9 billion.

Speaking about the results, Telstra CEO Andrew Penn stated: ‘We are clearly building financial momentum and I am very pleased to be able to say that our underlying business will return to full-year growth in FY22.’ In line with this, Telstra has set out its guidance for its current fiscal year, saying it expects total income of between AUD21.6 billion and AUD23.6 billion, underlying EBITDA of between AUD7.0 billion and AUD7.3 billion and CAPEX of between AUD2.8 billion and AUD3.0 billion.

With regards to Telstra’s operational highlights in FY21, meanwhile, the company reported a total retail mobile subscriber base of 19.471 million as of 30 June 2021, up from 18.775 million a year earlier, while it said it had 1.747 million wholesale mobile accesses at the end of the reporting period, up from 1.507 million at mid-2020. Telstra also offered up an update on its 5G rollout, noting that it has expanded the network deployment to now cover ‘selected areas in more than 200 cities and towns across Australia’, with the network now providing coverage to more than 75% of the population. Further, the operator also confirmed that it had around 1.6 million 5G devices connected to its network as of mid-2021. In the fixed line sector, meanwhile, the operator reported a total of 3.640 million consumer and small business subscribers signed up to either a bundle of fixed line voice and broadband or a standalone broadband service, down from 3.709 million at 30 June 2020, while standalone fixed voice accesses continued to decline, falling to 416,000, from 632,000.

Australia, Telstra (incl. Belong)