Telstra Corporation Releases its Half Year Results for FY 2019

TLS

Leading Telecom Company, Telstra Corporation Limited (ASX: TLS) has posted its half-year results for FY 2019. On a reported basis, the company earned a total income of $13.8 billion which was 4.1 percent less than the previous corresponding period (pcp). Further, the company reported EBITDA on a reported basis of $4.3 billion and NPAT of $1.2 billion, which were down by 16.4% and 27.4% on pcp, respectively. The financial results of H1 FY 2018 were mainly impacted by the rollout of the NBN™ network. In 1H FY19, the company’s underlying fixed costs were down 4.2 per cent on pcp. 

During the half year, the company added 240,000 net retail mobile services and 239,000 net retail postpaid mobile services. Telstra’s total retail mobile services now stand at more than 18 million with more than 8 million postpaid hand held. The company also added 125,000 wholesale mobile services, bringing total wholesale services for the company to 1.1 million.

The Revenues for the company’s mobile business were up 2.4% compared to the same period last year. Within this Mobile services, revenues were broadly flat with the growth coming from hardware due to increased handset pricing and volumes.

In the half year, the company added 308,000 new NBN connections with an estimated NBN market share excluding satellite of 51% and taking the total number of NBN connections from Telstra to 2.3 million.

The board has declared an interim ordinary dividend of 5 cents per share as well as an interim special dividend of 3 cents per share. The interim Dividend is having a Record date of 28 February 2019 and Payment date of 29 March 2019.

While commenting on the company’s T22 strategy, the company’s CFO Robyn Denholm told that this strategy is enabling Telstra to compete strongly while setting us up for future success. T22 strategy is designed to accelerate the company’s rate of change as well as lifting level of aspiration in delivering simpler, more flexible products and services.

In FY 2019, the company is expecting its total income to be in between $26.2 – $28.1 billion and EBITDA to be in between $8.7 to 9.4 billion.

The company is expecting its Free cashflow to be at the lower end of the guidance range, for two main reasons:

  • cash capex will increase as the company take advantage of opportunities in the enterprise and wholesale fibre markets and;
  • the cash redundancies will be higher as the company accelerate productivity.

Now, let us have a quick look at Telstra Corporation Limited’s stock performance and the returns it has posted in last few months. In the last six months, the share price of the company has increased by 14.29% as on 13 February 2019. TLS’s shares traded at $3.140 (-2.181% Intraday) with a market capitalization of circa $38.18 billion as on 14 February 2019. The counter opened the day at $3.120, reached a day’s high of $3.230 & touched a day’s low of $3.075 with a daily volume of ~ 60,282,946 shares. It has 52 weeks high of $3.466 and 52 weeks low of $2.571.


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