Telstra Shares Decline Following The Chairman Addressing The Shareholders

  • Oct 16, 2018 AEDT
  • Team Kalkine
Telstra Shares Decline Following The Chairman Addressing The Shareholders

Telstra Corporation Limited (ASX: TLS) is involved in the operations of providing telecommunications and information services to businesses, governments, communities, and individuals in Australia and internationally. In FY 2018, the Telstra Corporation witnessed a significant loss in the shareholders’ value and the company is also intending to lay off 8000 staff members. In the light of these events, the shareholders and proxy advisers were questioning the company’s decision to give bonuses at this time, hence they were preparing for a revolt over the executive pay at the Annual General Meeting.

On 16 October 2018, the chairman of Telstra Corporation Mr. John Mullen addressed the Shareholders at the Annual General meeting and defended the company’s performance by pointing out that despite facing significant challenges, the company’s results were in line with guidance and showed strong subscriber growth in both fixed and mobile services. After the release of this news, the Share price of the company decreased by 0.968 percent as on 16 October 2018. 

The chairman informed the shareholders that the company’s Earnings Before Interest, Tax, Depreciation and Amortization reduced by 5.2 percent to $10.1 billion, and Net Profit after Tax reduced by 8.9 percent to $3.5 billion as the effect of the NBN on Telstra’s financials escalated.

The chairman also addressed the ongoing disruptions which are faced by the telecommunication industry as many companies are facing huge disruption in their sectors with the rise of digital giants like Amazon, Google, and Netflix and the emergence of online competitors which have destroyed their traditional business models and fragmented their customer base. Telstra is right in the middle of this disruption and the strong profits are disappearing that the company used to make on fixed broadband, home phones, global roaming excess usage charges, the Yellow Pages.

He pointed out that the demand for the newer core products and services continues to grow rapidly and in the long term the strength of Telstra’s networks, assets, balance sheet, and talented people will provide Telstra with a great position of strength to tackle these new challenges head-on.

He also told that he is aware of the concerns that have been raised around the Remuneration Report by proxy advisors and others, which means that a substantial number of shareholders will not approve the report. According to him, in these challenging conditions, the first-class leadership is very important to the company and a number of things contribute to attract, retain and motivate high caliber executives, one of which is remuneration. Especially in the case of attracting the first-class talent from overseas as overseas executives will simply not give up well-paid jobs overseas to join Telstra unless the company is having competitive remuneration strategies.

TLS’s shares traded at $3.070 with a market capitalization of $36.87 billion as on 16 October 2018 (AEST 4:00 PM).

Dividend Stocks To Buy

The Income available from dividends remains attractive for many investors.

We take a look at the best yields on the market and assess what they say about a company’s prospect.

One Thing is certain, though, Australia interest rates are still low, making income difficult to come by and keeping the focus for many investors on high yielding stocks. Kalkine’s team of analysts bought you handpicked report for “Top 25 Dividend Stocks For 2018.”

ASX-relevant Special Reports are published year-round to provide a detailed analysis into an investing opportunity or a potential risk to your portfolio.

Click here to get your free report.


Disclaimer

The advice given by Kalkine Pty Ltd and provided on this website is general information only and it does not take into account your investment objectives, financial situation or needs. You should therefore consider whether the advice is appropriate to your investment objectives, financial situation and needs before acting upon it. You should seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) as necessary before acting on any advice. Not all investments are appropriate for all people. Kalkinemedia.com and associated websites are published by Kalkine Pty Ltd ABN 34 154 808 312 (Australian Financial Services License Number 425376). website), employees and/or associates of Kalkine Pty Ltd do not hold positions in any of the stocks covered on the website. These stocks can change any time and readers of the reports should not consider these stocks as advice or recommendations.

 

 

 

All pictures are copyright to their respective owner(s).Kalkinemedia.com does not claim ownership of any of the pictures displayed on this website unless stated otherwise. Some of the images used on this website are taken from the web and are believed to be in public domain. We have used reasonable efforts to accredit the source (public domain/CC0 status) to where it was found and indicated it below the image.

 

There is no investor left unperturbed with the ongoing trade conflicts between US-China and the devastating bushfire in Australia.

Are you wondering if the year 2020 might not have taken the right start? Dividend stocks could be the answer to that question.

As interest rates in Australia are already at record low levels, find out which dividend stocks are viewed as the most attractive investment opportunity in the current scenario in our report.

CLICK HERE FOR YOUR FREE REPORT!
   
x
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. OK