Tag: TLS

Telstra has confirmed that it is still expecting peak financial pain from the NBN, but not this financial year but in 2020-21.

Telstra has slashed its final dividend after a sharp slide in profit for the year to June 30 and shareholders have been warned to brace for an even bigger impact on its bottom line next year as a result of the NBN.

Telstra has lifted its 2018-19 write-offs and associated restructuring costs to be revealed in August to half a billion dollars.

The total size of Telstra’s interim dividend has now almost halved in two years thanks to rising levels of competition in mobiles and the inroads the NBN is making.

Telstra edged higher in yesterday’s big sell-off even though the company produced yet another profit downgrade. But unlike some warnings in the past two years, the market had been awaiting this update.

Yes, there was more pressure on Telstra shares yesterday – upward pressure after they hit their highest price since May, despite the telco reporting a full-year profit drop of 8.4% cent to $3.56 billion.

More pressure on shares in Telstra after the telco warned of a further deterioration in market conditions in 2019 as it posted a 8.9% drop in annual profit to $3.56 billion for the year to June 20.

Telstra has announced a major restructure of its executive ranks, including the appointment of former SBS boss Michael Ebeid to run its Enterprise team and the departure of chief financial officer Warwick Bray and two other senior rankers.

Telstra shares fell heavily yesterday as the company revealed its latest ideas for revamping itself.

Telstra has a moment of truth this Wednesday with its 2018 investor day.

Credit rating group, S&P Global dropped Telstra’s credit rating, saying the country’s top telecommunications company has a “diminished” role in the industry and faces difficulty in executing a plan to move from telco to ‘techco’ (a technology-driven company).

The bears have their fangs well and truly into the Telstra share price.

A 5% fall – to $3 – wasn’t unexpected as Telstra slipped out what amounts to a disguised earnings downgrade for the year to June 30, and an implicit warning of the tough times continuing into 2018-19 thanks to the gradual advance of the NBN.

A ho hum half year result from Telstra yesterday that left the market mildly interested as the shares edged up half a per cent to $3.45.

The dividend is safe, but not Telstra’s bottom line after the telco slashed its expected 2017-18 revenues by a huge $700 million, with pre tax earnings slashed by $600 million.

I wrote a few months ago in The Australian that the Government would eventually have to write down the value of the NBN by $20 billion or so to $10 billion, and then sell it.

No real reaction from the Telstra share price from yesterday’s handwringing by the company’s chairman John Mullen about the dividend cut.

Telstra can’t take a trick at the moment. Dividend cuts (which seemed prudent), increased competition and weakening margins saw the shares hammered lower earlier this month.

It’s going to be a rough start to trading on the ASX this morning on top of Thursday’s Telstra driven surge and slide.

While Telstra executives defended the decision to cut the telco’s dividends yesterday – more than 180 million with a value of close to $700 million were sold – investors were selling the shares by the millions, pushing the shares to five year lows.

Two things about Telstra from this week’s interviews.

Still on telcos and Telstra is set to cut up nearly 1,500 jobs across the country as part of a deep cost cutting drive to try and rightsize parts of the business.

Telstra (TLS) shares lost more than 6% yesterday in the wake of the telco’s surprise slide in interim profit.

Telstra (TLS) will slash costs by $1 billion over the next five years at a time when it is investing as much as $15 billion in its networks over the next three years to fight intense competition.

You are a major Australian company, the leader in your sector, in most investors’ portfolios, and a favourite of international investors because of your high credit rating, solid revenues and cash flows and big dividend yield (around a fat 5.5% compared with Commonwealth bond yields around 1.85% or bank deposits around 2% to 3% at best).

A steady final and full year dividend as well as the mooted capital management program costing $1.5 billion can’t hide the fact that Telstra (TLS) struggled in 2015-16, especially in the final six months as a series of system outages cost it dearly in terms of customer engagement and support.

Telstra reports its 2015-16 full year results on August 11 and top of the list will be the anticipated capital management program the company has promised using some of the surplus generated by the sale of most of its stake in Chinese online group, Autohome for $A2.1 billion.

Telstra has confirmed that it will use most of the profit from the sale of a 47.5% stake in Chinese car website Autohome on a capital management program later this year.