Telstra Will Return To “Full-Year Growth” In 2022
Telstra chairman John Mullen has pledged that the telco is set to return to full-year growth this financial year.
“Telstra is building financial momentum and we are very pleased to be able to say that we are confident our underlying business will return to full-year growth in financial year 2022,” Mullen told shareholders yesterday at the company’s annual general meeting.
“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.”
This follows the cost-cutting T22 plan which trimmed $2.3 billion from costs, with the telco now set “to deliver our T22 productivity target of $2.7 billion”.
“Each year we have had to start the year with our EBITDA going backwards by up to $800m at the same time as we were operating in increasingly competitive markets, markets disrupted by new technologies and facing significant structural change,” Mr Mullen said, referring to the decade-long costs of the NBN rollout.
“The reality is that Telstra has lost over $6 billion of profit in the last decade or so, predominantly from the impact of the NBN but also the loss of voice revenues, SMS revenues, global roaming and other pressures, and this has had an inevitable impact on earnings, dividends and our share price.”