Telstra Claims “Momentum” Despite 11% Revenue Slump
Telstra says it is in a strong position heading into the 2022 financial year, with an increase in net profit despite falls in total income and EBITDA.
Income decreased 11.6 per cent to $23.1 billion for the year, and EBITDA was down 14.2 per cent to $7.6 billion; net profit after tax, however, rose 3.4 per cent to $1.9 billion.
In a release to the ASX, Telstra said it had faced $650 million in headwinds from the NBN and a $380 million financial hit from COVID, both of which were factored into EBITDA; however, the company believes it is on track to meet 80 per cent of the targets of its four-year T22 strategy.
CEO Andy Penn has hailed the results as a “turning point” in the company’s financial fortunes.
“We are clearly building financial momentum and I am very pleased to be able to say that our underlying business will return to full-year growth in FY22.
“We have confidence because we see strong performance in our mobile business, continued discipline on our cost reduction target, green shoots in some of our growth businesses and a diminishing impact from the NBN,” he said.
According to Penn, Telstra has simplified and become leaner and more digitally focused.
“We have 8.8 million services on our 20 new simplified fixed and postpaid mobile Consumer and Small Business plans.
“We also have 3.5 million members signed up to our rewards program, Telstra Plus, and we are seeing strong engagement from these customers,” he said.
The company this year sold part of its Poles and Wires business, and has seen strong growth in Foxtel, Telstra Health, and Telstra Ventures, while operating expenses dropped 10.2 per cent for the year.
It has forecast a return to full-year growth in 2021-22.