Telstra sees profit slide by 14 per cent, maintains dividend

Telstra's profit has fallen by 14.1 per cent as the coronavirus pandemic and the national bushfire crisis put pressure on the telco.

13/08/2020 2:19:00 AM

Telstra's profit has fallen by 14.1 per cent as the coronavirus pandemic and national bushfire crisis put pressure on the telco | zoesam93

Telstra's profit has fallen by 14.1 per cent as the coronavirus pandemic and the national bushfire crisis put pressure on the telco.

Very large text sizeTelstra's profit has fallen by 14.1 per cent as the coronavirus pandemic and the national bushfire crisis put pressure on the company.Australia's largest telco reported a 6 per cent dip in total income to $26.2 billion and net profit of $1.8 billion for the full financial year, but the lower result is in line with its guidance and the company will pay its final 8¢ dividend to shareholders. Earnings before interest, tax, depreciation and amortisation came in at $8.9 billion.

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Telstra chief executive Andrew Penn said the result showed the telco's resilience.Credit:Ryan StuartTelstra chief executive Andrew Penn said the result highlighted the telco's resilience. Like many businesses, Telstra has been hit by the multiple crises that have taken place this year. Outside of headwinds caused by customers moving to the NBN, the telco has faced financial challenges because of the bushfire crisis and the pandemic.

Free mobile services for firefighters and infrastructure repairs amounted to $44 million. Mr Penn said the pandemic impacts were reduced international roaming, a fall in professional services revenue and increased financial support for customers.Advertisement

"It says a lot about the strength of our business and strategy that through all this we were able to meet guidance, maintain the dividend and provide guidance for the year ahead," Mr Penn said.LoadingMobile revenue fell $461 million, or 4 per cent, for the full financial year to $10.1 billion, due to declines in average revenue per user for postpaid and prepaid customers and fewer people buying mobile phones. International roaming fell by $75 million, also contributing to the revenue fall.

Fixed revenue fell by 12.1 per cent, hit by customers' migration to the national broadband network. The telco also reported an 8.9 per cent decline in media revenue, due to the performance of its subscription TV offer Foxtel from Telstra. Foxtel from Telstra revenue fell 5.9 per cent to $625 million and had 98,000 subscriber exits.

Telstra is still pushing ahead with its T22 transformation strategy despite the challenges this year. However, Mr Penn said he would keep redundancies on hold for permanent local and international employees until February next year."We know many are doing it tough at the moment, and we hope this decision will give some certainty to our people in what is a very challenging time for Australia – and many of the countries in which we operate," Mr Penn said. "There will be some roles that finish in the interim where projects have come to an end or work is no longer required, volumes have declined, or fixed term contracts end, particularly related to our involvement in the construction of the nbn. However, for the majority of our teams this will continue to give them some certainty at least until the new year."

The company expects total income to be in the range of $23.2 billion to $25.1 billion next financial year and underlying EBITDA to be in the range of $6.5 billion to $7 billion. Read more: The Sydney Morning Herald »

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zoesam93 I don’t get it. More home working (I.e. more phone and video calls) and more TV downloads. So more telco activity. Yet Telstra profits hit? I’m sure there are more impacted companies so let’s not shed too many tears. Qantas shut down but we are focusing on Telstra ? zoesam93 Any wonder

Round 14: Everything you need to know to tune inAll the information you need to know to tune in to Round 14 of the 2020 Telstra Premiership.

August earning season to smash businesses, companies to slash dividends | Sky News AustraliaA large number of businesses are expected to take a hit during the August reporting season as the coronavirus pandemic sees a drop in guidance and minuscule dividend payments.\n\nMarket expectations forecast company earnings will be down roughly 20 per cent with the mining sector leading the charge due to skyrocketing iron ore prices.\n\nAMP Capital’s Shane Oliver told Sky News he expects dividends to be cut by about 40 per cent.\n\n“It’s not just banking, it’s companies outside banking which will likely cut dividends,” he said.\n\nImage: Getty ❗️10.5 per cent or almost six Sydney Harbours of Australia's water foreign owned ❗️China now the single biggest foreign owner of Australian water at 1.9 per cent ❗️Farmers struggling to afford water due to hiked up prices by overseas buyers

Round 14: Everything you need to know to tune inAll the information you need to know to tune in to Round 14 of the 2020 Telstra Premiership.

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Commonwealth Bank's cash profit plunges 11 per cent during COVID-19Announcing its full year results today, CBA said cash NPAT was down 11.3 per cent to $7.3 billion in FY20 due to conditions created by the virus. I think it’s the whole 19/20 FY.... Not just during COVID 19.. Still made BILLIONS in the quarter.. Pretty sure the White European community of elites running CBA are laughing all the way to the bank. We natives continue to suffer inter-generational trauma and economic loss since their foreign White European ancestors illegally made first contact with us. We didn't want to!

Unemployment tipped to increase to 7.8 per cent in July | Sky News AustraliaEmployment figures for July are expected out today and will likely show an increase in unemployment from 7.4 per cent up to 7.6 per cent.\n\nInvestSMART's Evan Lucas said the July figures should be taken with 'a pinch of salt' because it wouldn't capture the full effect Victoria's lockdowns have had on the economy.\n\n'There are expectations 40,000 jobs will be added in Victoria... but we do expect to see the unemployment rate tick up,' Mr Lucas said.\n\n'We also expect to probably see the divergence across the states. Victoria will clearly show an increase in unemployment.\n\nMr Lucas pointed to data that suggested the number of full-time jobs was declining rapidly with the majority of jobs available on part-time contracts.\n\n'People will take anything they can get at the moment,' he said.\n\nYesterday's wage price index revealed the first contraction in private wages since records began in 1997.\n\nImage: News Corp Australia I'm sure if we all put our heads together we can find a way to blame Dan Andrews for this. Sky Not News... What's the real figure, not the Liberals make believe one's! When will you be reporting on how the Liberals have failed in there Duty of Care, concerning Aged Care... 220 Death's.. Where are the HEADLINES? 🤬🤬 Think you’ve left a “1” off the front!