First-half earnings were broadly in line with Credit Suisse estimates. Despite the better-than-expected mobile numbers, management has indicated the market remains highly competitive.
No specific dividend guidance was provided for FY19 but the first half was lower than the broker expected.
Management has noted that, post the NBN roll-out, operating earnings (EBITDA) need to be in the $7-8 bn range for a $0.16 dividend to be paid.
Neutral rating maintained and the target is raised to $3.15 from $3.10.
Sector: Telecommunication Services.
Target price is $3.15.Current Price is $3.14. Difference: $0.01 – (brackets indicate current price is over target). If TLS meets the Credit Suisse target it will return approximately 0% (excluding dividends, fees and charges – negative figures indicate an expected loss).