Telstra’s first-half financial results for FY19 left much to be desired for shareholders of Australia’s largest telco, with revenue down by AU$223 million to AU$12.6 billion, total income down by AU$593 million to AU$13.8 billion, and profit dropping from AU$1.7 billion to AU$1.2 billion. Earnings before interest, tax, depreciation, and amortisation (EBITDA) dropped by 16 percent, from AU$5.1 billion to AU$4.3 billion year on year, although CEO Andy Penn said EBITDA was up by 1.3 percent not including one-off and restructure costs. Restructuring costs under Telstra’s T22 strategy reached AU$0.3 billion for the six months to December 31. Telstra blamed its drop in results to “very different” circumstances thanks to the National Broadband Network (NBN), with CFO Robyn Denholm calling the decreased earnings under the NBN “expected”. “The largest reason for the decline in our results is the NBN,” Denholm, who will soon be leaving Telstra to begin her role as chair of Tesla, said during the financial results call on Thursday morning. “Our continued focus on T22 is enabling us to compete strongly while setting us up for future success.” Telstra has absorbed to date AU$1.7 billion of the estimated AU$3 billion negative impact on its EBITDA to occur by the end of NBN rollout. “We remain very positive about the future,” Penn said. Fixed revenue was down by 9.3 percent to AU$2.7 billion thanks to NBN migration as well as the continuing decline in legacy voice services. Telstra had 2.254 million NBN customers as of the end of… [Read full story]
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