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Telstra are on a mobile high today after announcing a 23% jump in profits and 958,000 new mobile customers.
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| Telstra Androidland, Melbourne |
The telco has announced ‘one of our best years yet’, CEO David Thodey said today, adding almost one million mobile customers to its network, during the six months to 31 December 2011.
Telstra added a whopping 958,000 new mobile customers during the six months (338K postpaid mobile, 436,000 mobile broadband) and106,000 fixed line broadband users, it anounced today.
This helped push Telstra’s total revenue for the first fiscal six month 2012 to $12,4bn – a 1.1% jump, while earnings before tax, or EBITDA, increased by 3.7% to $4,7bn.
Net profit after tax also increased by 22.9% to $1,4bn.
The revenue figures fell slightly below analysts expectation, however, which had widely predicted $12.5bn revenues and $1.52bn net profit.
On the media front, the telco added 166,000 users on its T-Box set top box and T-Hub service and now has 206,000 customers on mixed bundled plans, bringing the total base to more than 1.2 million.
However, Telstra said its strategy is continuing to pay off, including its $1bn ‘Project New’ customer service revamp along with its decision last year to ramp up its digital media business.
Telstra’s customer complaints were also down 24% over the year, although “we still have more work to do,” Thodey cautioned.
He also said his company’s “strategy is unchanged.”
“We will continue to focus on improving customer satisfaction, growing customer numbers, simplifying the business and taking advantage of new growth opportunities.” Mr Thodey said.
The company also confirmed guidance for fiscal 2012 of “low single digit revenue” and EBITDA growth, with free cashflow of between $4.5 -$5 billion and announced a 14 cent interim dividend.
“Last year we recorded one of our best years for customer growth. This momentum has continued into the first half of fiscal 2012,” CEO David Thodey said today.
“Our superior networks and competitive offers are being recognised and valued by new and existing customers.”
Looking closer at the figures, Telstra’s mobile revenue grew 10.9% in the half to $4,3bn, although fixed line voice business declined by 9.0% to $2,4bn.
This comes as Telstra has upped the ante on mobile’s, opening the world first Androidland Store in Melbourne, offering the first 4G phone in Australia, HTC Velocity, and selling the Samsung Galaxy Nexus on Ice Cream Sandwich on exclusive.
Retail fixed broadband revenues increased by 5.8% to $835m and IP access revenues grew by 8.9% to $514m.
The telco also said it remains “on track “to deliver cost benefits in fiscal 2012 and has already achieved benefits of $456 million, driven by “improved labour productivity and simplified processes.”
If continued, this will exceed the $622m cost savings delivered last year.
On the NBN deal, Telstra said it believes it is “close to finalising the NBN transaction” which will mean an additional $11bn in its coffers as it hands the NBN Co over its copper infrastructure.
It also said it has also lodged a revised Structural Separation Undertaking to the ACCC for approval, which will see the break up of its retail and wholesale arm during the construction of the $35.9bn NBN project.
“The company is working towards satisfying this last key requirement and implementing its agreements with NBN Co and the Government,” it said today.
The NBN transaction is not expected to have a material impact on Telstra’s underlying financial results in fiscal 2012.
Telstra also intentends to maintain a 28 cent fully-franked dividend for fiscal 2012 and 2013 as announced in October.
Telstra’s Board has re-affirmed its intention to consider a broader capital management strategy upon implementation of the NBN agreements.
