Telstra Profit Soars In 2015 First Half
Telstra’s total income of $13 billion for the half represented a 1.6 per cent rise.
In announcing the results today, Telstra chief executive officer David Thodey noted the launch of the iPhone 6 was the telco’s “best ever”, with Telstra seeing “growth in the number of connected tablets and data sharing”.
“Our focus on the customer has led to the addition of 366,000 new retail mobile customer services, 87,000 new retail fixed broadband customers and 127,000 new customers on a fixed bundle,” Thodey stated.
Telstra’s mobile business revenue increased 9.6 per cent to $5.3 billion, its strongest level of revenue growth in six halves.
Fixed data revenue grew 7.8 per cent, while Telstra stated more customers moving onto bundled plans led to the lowest rate of decline in its fixed voice business for five years, with revenue decreasing 6.9 per cent
Overall, Telstra’s fixed business revenue declined 1.7 per cent to $3.5 billion.
Telstra stated it now has 6.7 million 4G devices on its network, comprising 4.9 million handsets, 666,000 tablets, 384,000 dongles and 624,000 Wi-Fi hotspots, with its 4G coverage now reaching 90 per cent of the Australian population.
Thodey stated Telstra aims to have 94 per cent of the population covered by the middle of the year, with Telstra having also launched its new 4GX service during the half.
“There are already over one million 4GX compatible devices in customers’ hands today and that number will grow during the year,” he commented.
Thodey further noted there are more than 1,000 Wi-Fi hotspots already enabled on Telstra’s national public Wi-Fi access network, with Telstra aiming for two million Wi-Fi hotspots across the nation and more than 13 million hotspots around the world.
Telstra’s Network Applications and Services (NAS) revenue increased 18.1 per cent to $1 billion, with international NAS revenues increasing by 28.1 per cent to $41 million.
Thodey noted the importance of investing in new businesses and growing telecommunications services in Asia for Telstra’s growth ambitions
“I am pleased to see the expansion of our international networks through the acquisition of Pacnet, which subject to regulatory and Pacnet financier approval, is expected to complete in the middle of the year,” Thodey commented.
“Once completed, this acquisition will increase the scale and capability of our fixed infrastructure, our network density and our reach across the Asia Pacific region, as well as our customer base and our capability.”
Thoday further noted through its acquisition of video technology company Ooyala, Telstra aims “to establish a leading global company to deliver platforms and services on which the next generation of TV and video will be built”.
Announcing an interim dividend of 15 cents per share, up 0.5 cents on the 2014 half year, Telstra additionally announced the reactivation of a dividend reinvestment plan, to be made available from the 2015 financial year final dividend.