- As shared on Telstra’s website, the company is due to share its full year result tomorrow (11 August 2022).
- Recently, the company has extended partnership with Microsoft for another five years.
- The Microsoft partnership is expected to drive the digitisation of Telstra in Australia.
Shares of the telecommunication services provider, Telstra Corporation Limited (ASX:TLS) are on investors’ radar as the company is expected to share its full results for 2022 on 11 August 2022 (as per the company’s website).
Today, at 12:34 PM AEST, Telstra shares were spotted trading 0.37% down on the ASX at AU$4.02 per share.
Here’s what the market might be expecting from Telstra.
The financial year 2022 for Telstra
Telstra said that FY22 is a crucial growth year for the organisation as it completed its T22 and moved past the FY21 inflection point. T22 stands for the Telstra2022 strategy, which would allow the firm to simplify its operations, products and services, enhance customer experience and reduce the cost base.
While sharing the FY21 financial results, the company had shared that it expects a total income of AU$21.6 to AU$23.6 billion in FY22. The expected underlying EBITDA between AU$7.0 to AU$7.3 billion. The company expects capital expenditure between AU$2.8 to AU$3.0 billion and free cashflow after lease payments of AU$3.5 to AU$3.9 billion.
The company showed confidence in achieving the AU$2.7 billion target of cumulative cost reduction by the end of FY22.
Image source: © F11photo | Megapixl.com
Telstra shared its areas of focus in the coming years. the company would focus on improving the customer experience, completing the digitisation program with a focus on simplification, extending leadership in 5G and strategically investing in networks.
Challenges in front of Telstra
The rollout of its 5G network has been under the radar of the Australian watchdog, The Australian Competition & Consumer Commission (ACCC). ACCC raised the concern that the rolling out of the 5G network in Australia would hinder Optus, the local unit of Singtel.
Regarding its digitisation plan, Telstra has recently extended its partnership with a global tech firm, Microsoft, for another five years. Under this strategic partnership, both companies would use each other’s capabilities to achieve digital transformation in Australia.
Moving to the customer experience part, while sharing the first half results for FY22, Andrew Penn, CEO, Telstra, highlighted that business digitisation and simplification are yielding positive results in terms of customer experience.
Penn added that the around four million customers are part of its reward program called Telstra Plus. There is a significant decline in the number of calls coming to the Consumer & Small Business contact centres, almost by 70%. By the end of FY22, the company expects to answer all these calls in Australia.