TOday on S.M.H emphasised mine. Someone recently asked me which telco I was with for NBN, I said Telstra, and they said why don't I change to cheaper/cheapo ISP, I said I'm a shareholder.
Telstra posts $1 billion profit, but enterprise unit falls flatBy David Swan February 15, 2024 — 8.47amAdvertisement Listen to this article 3 min Telco giant Telstra has lifted its dividend amid soaring profits and strong growth in its mobile business, but cut its profit forecast after its usually lucrative enterprise unit fell flat.The Sydney-based company on Thursday posted a $1 billion net profit for the six months to December 31, up 11.5 per cent year-on-year, while underlying earnings before interest, tax, depreciation and amortisation (EBITDA) were up 3.1 per cent to $4 billion. Total revenue edged up 1.2 per cent to $11.7 billion.Announcing a “detailed review” of the underperforming enterprise business, the telco said it now expects between $8.2 billion and $8.3 billion in underlying earnings for the 2024 financial year, down from its guidance of as much as $8.4 billion previously.The nation’s biggest telco has delivered a $1 billion profit, but says not all parts of the business are performing well.Credit: AAPTelstra chief executive Vicki Brady lauded the telco’s mobile performance, which she said was driven by more customers, higher revenues per customer and cost discipline.“We know the external environment is putting pressure on consumers and businesses, and we will continue to invest to deliver connectivity that is reliable, resilient and secure, and offer plans that are simple and deliver the services and choices our customers need,” Brady said.But the company’s network applications and services [NAS] business disappointed, seeing its sales fall across its calling applications and professional services.Related ArticleTelecommunicationsTelstra says it has picked up Optus customers after mass outageRevenues at the division, which includes network security, cloud services, unified communications and industry services, were hit by competition and technology change, and Brady said the unit “is clearly a long way from where we need it to be”.“We are undertaking a full review of the products and services we provide within our enterprise business, and particularly our NAS portfolio, to make sure they both meet the current and future needs of our customers, and create shareholder value,” said Brady.AdvertisementThe executive added that Telstra gained tens of thousands of new customers as a result of November’s Optus outage, which impacted some 10 million Optus customers and felled rail networks, small businesses and hospital communications.Telstra added 63,000 net new postpaid customers across the six-month period.“In terms of the Optus outage, I would characterise its impact as similar to prior events,” Brady said referencing the Optus data breach in late 2022. “We would estimate that impact to be maybe in the tens of thousands [of customers]. To be honest, we had a very good December quarter… And in terms of the competitive dynamic, it’s brought front of mind for customers that it’s all about resilience and reliability, whether in our personal lives or in our businesses.”Telstra will pay a fully franked dividend of 9 cents per share, up 5.9 per cent year-on-year, to be paid March 28.Telstra shares last traded at $3.99, giving the company a market valuation of about $46.1 billion.More to come.The Business Briefing newsletter delivers major stories, exclusive coverage and expert opinion. Sign up to get it every weekday morning.
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