Telstra Results Reveal Profit Drop, Despite T22 Restructuring

Telstra has reported its half year results which it says is ‘in line with guidance and expectations,’ despite a total income revenue decline of 2.8 per cent.

The telco company said its results showed strong progress with the T22 restructuring plans, cost reductions and continued customer growth thanks to its ‘multi-brand strategy’ and ‘5G leadership.’

The progress on T22 alongside ongoing efforts to simplify the business, contributed to reducing underlying fixed costs by $422 million or 12.1 per cent. But total income declined 2.8 per cent and NPAT declined 6.4 per cent. Additionally, underlying EBITDA1 declined 6.6 per cent.

‘The results show that the T22 strategy is building value and delivering positive financial momentum,’ Telstra announced in its 1H20 report.

‘We have 2.4 million services on our new, radically simplified plans and more than 1.2 million customers are now able to enjoy the benefits of being a Telstra Plus member.’

Additionally, the telco announced that more customers were choosing to interact with the company online, with digital interactions services rising to 57 per cent and the volume of calls to call centres continuing to decrease.

‘Customers are also enjoying access to Telstra’s world-leading 5G mobile network and a growing range of 5G-enabled devices,’ the report read.

‘We now have 5G coverage in selected areas in 32 cities and regional areas and are on track for our target by the end of FY20.’

The Telstra Board also resolved to pay a fully franked interim dividend of 8 cents per share, comprising an interim ordinary dividend of 5 cents and an interim special dividend of 3 cents.

Guidance for FY20 is reconfirmed, Telstra announced. The full report can be accessed here.