Telstra who are going to have to rethink their business plans, if a Coalition Government is appointed next Saturday has announced a 2.2 per cent decline in revenues with fixed line revenue falling an additional 8 per cent. Profits declined 3 per cent to 3.8 Billion.
Mobile revenues are up 6.4 per cent while pre paid revenues are up 18 per cent. Data revenues increased by 8 per cent.
Last month Telstra reached agreement with the Labour Federal Government to sell several company assets to the NBN Co who is tasked with rolling out a new $43 Billion dollar fibre broadband network in Australia.
The deal was tipped to deliver billions in dividends for Telstra shareholders.
Telstra said that 2010 was proving to be a challenging year as the company coped with intense competition and an accelerating shift of voice and data to their mobile networks.
Telstra said that In the last six months we have seen the operating performance in a number of key areas begin to improve. In the second half we have seen improving growth in our mobile business, and a return to fixed broadband subscriber growth as well as growth in both our Business, and Enterprise and Government segments. 2011 will be a transition year as we invest to prepare the company to compete in the future. We will:
· continue to improve customer service and satisfaction;
· simplify the business , re-engineer core processes and reduce costs; and
· prepare the business for an NBN world by investing to grownew revenue streams that compensate for reductions in traditional fixed revenues.
We are making capital investment and operational expenditure investment to develop and improve our product and servicedelivery capability. We believe this investment will allow us to fulfil the longer-term imperative of creating sustainable shareholder value.
The benefits of this necessary investment will become obvious from 2012.
In 2011, we expect an increase in the customer base and flattish revenue, but because of our additional investments and
changing product mix we expect a high single digit percentage decline in EBITDA.
More to follow.