Telstra (TLS) Annual results. Net profits fell 4.7% in the year,...

Telstra (TLS) Annual results. Net profits fell 4.7% in the year, which was in line with forecasts.

Declining revenues came from its fixed line business and tough competition in its mobile operations in Australia and Asia.

Net profit fell to $3.88bn from $4.07bn a year ago. The result included a $168m charge for Telstra's Hong Kong-based mobile arm, CSL New World.
Revenue, excluding finance income, was $24.92bn down from $25.51bn last year.
Company forecasts flattish revenue for FY 2011.
The company warns of high single digit percentage fall in EBITDA and anticipates an increase in its customer base, which may come from more competitive pricing.
2010 has been a challenging year, yet in the second half we started to see improving momentum in key products and positive growth with business, government and enterprise customers as well as profit growth at Sensis, - CEO David Thodey.

Results in the second half show an improving uptrend. If Labor is elected and the NBN deal is fulfilled, I would expect a decent rebound in the shareprice. A Liberal win places greater uncertainty on Telstras business outlook. Telstra continues to be dependent of political outcomes/uncertainties. $6.2B in free cash flow should safeguard the dividend and new broardband and mobile business plans may continue the uptrend of the last half performance.