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iiNet Limited (IIN) reported a half year statutory NPAT of $12.1m, up 6% on last year’s corresponding period. The company reaffirmed its previous 2010 full year guidance of underlying EBITDA in the range between $75 million to $80 million.

For the first half, underlying EBITDA was $37.4 million, up 20% on last year.

“iiNet’s positive half year result, combined with an improved domestic economic outlook and exciting pipeline of product and content initiatives, provides a strong foundation for continued growth over the 2010 financial year and beyond,” the company said.

Half year revenue grew by 11% to $228.1 million and subscriber services grew by more than 5% to almost 800,000.

Chief Executive Officer, Michael Malone said the company’s financial and operational results would enable it to continue to focus on organic growth and to explore further acquisition opportunities.

At 1043 AEDT, iiNet shares were flat at $2.18.

Telstra Corporation Limited (TLS) reported a 3.3% drop in first-half profit to $1.853 billion on the back of a 2.9% fall in revenue. The company said it faces challenges on a number of fronts in the future including strong competition, an accelerated move to wireless-only homes, Aussie dollar strength and difficult operating conditions, however added that it believes it would see an improvement in a number of these areas in the second half.

Australia’s largest telco said its focus on profitable growth has come at a slight cost to revenue market share, while a slowdown in PSTN had also impacted the result.

Telstra said all of the retail segments faced challenges in the first six months of the year, with retail income, adjusted for the sale of KAZ Group, down 0.5% in the half and revenue in the wholesale business 3.3% lower.

”Our major retail segments reported negative growth in the first half, a significant slowdown on the first half of fiscal 2009 as competition has intensified,” the company said.

“At a product level, performance in the first six months of the year has been mixed but overall our market shares have come under pressure.”

Telstra said mobile services revenue growth of 4.7% remained above its global peers, although the company believes its focus on profitable growth came at a slight cost to revenue market share.

The company said it could see strong demand growth in both mobile and IP, but significant pressure on price.

“Total fixed revenue declined by 4.8% to $5,145 million as the rate of PSTN revenue decline accelerated and the fixed broadband market continues to mature,” Telstra said.

”The consumer popularity of wireless broadband has also led to an increasing trend to mobile-only households, which we estimate is now close to 10% of total households.”

The company reported a 6.9% drop in PSTN revenue during the half to just under $3 billion.

"This is an acceleration on the 4.8% decline in PSTN revenues we recorded in the second half of fiscal 2009,” Telstra said.

”There are several drivers of this decline including lower usage across all calling categories, most notably in local calls and national long distance.”

Looking at other figures, the company said free cash flow increased by $708 million to $2,619 million in the half due to lower capital expenditure. Telstra said this left it well positioned to meet its target of $6 billion of free cash flow in FY10.

”The effective net debt position at 31 December 2009 was $15,240 million which represents a decrease over the six months of $415 million,” the company said.

Regarding the National Broadband Network (“NBN”), Telstra said it remains an important issue for the company and it remains engaged in constructive talks with the Government and NBN Co.

”We remain committed to try to find a mutually acceptable outcome, but the path ahead remains immensely complex,” the company said.

Telstra maintained its profitability targets of EBITDA and EBIT percentage growth of low single-digits for FY10, with EBITDA margins maintained and accrued capital expenditure of around 14% of sales revenue, equivalent to less than $3.8b.

The company declared an interim devidend of 14c per share, in line with a year earlier.

At the close of trade Wednesday, Telstra shares were trading at $3.39.

Singapore Telecommunications Limited (SGT) said its wholly-owned Australian subsidiary Optus had recorded 4.8% growth in operating revenue for the quarter ended 31 December to $2.3 billion, while operating EBITDA was up 3.6% to $529 million.

In Singapore the company said the group revenue jumped 20% to S$4.45 billion ($3.6 billion), with the increase fuelled by growth from Singapore and Australia, while a stronger Aussie dollar also increased the bottom line.

In the quarter, the Australian dollar appreciated 27% against the Singapore dollar. On a ‘constant currency’ basis revenue growth was a more subdued 3.4%.

In Australia, Optus CEO Paul O’Sullivan said the company had recorded an 11% rise in mobile services revenue, the company’s fifth consecutive quarter of double-digit mobile services revenue growth.

”The record-breaking increase in new mobile postpaid customers reflects confidence in Optus as a leading provider of mobile and wireless broadband solutions,” Mr O’Sullivan said. 

Despite the upbeat assessment the company cut 145,000 pre-paid customers to 4.2 million, after tightening its churn policy.

Across the group, which has operations across Asia, India in addition to Australia, underlying net profit grew 18% to S$990 million ($804 million).

SingTel Group CEO, Ms Chua Sock Koong said that across Singapore, Australia and the associates, the company was focused on execution and delivering to exceed customer expectations.

“The Singapore and Australia businesses stood out for their exceptional performance in mobile under highly competitive market conditions.” Ms Chua Sock Koong said.

At 1035 AEDT, SingTel shares were unchanged at $2.37 each.

Telstra Corporation Limited (TLS) said it now expects sales revenue in FY10 to be “flattish” compared to the previous year. The telco said the major reasons for the lower than expected growth are the strength of the local currency, difficult operating conditions in Hong Kong, strong competition locally and an accelerated move to wireless-only homes.

Telstra said the forecast includes the impact of the sale of KAZ last year.

“All other guidance measures remain unchanged – importantly the company remains confident of achieving its 2010 free cashflow target of $6 billion,” the company said.

Telstra expects low single-digit growth in EBITDA compared to FY09.

At the close of trade Thursday, Telstra shares were trading at $3.55.

Telstra Corporation Limited (TLS) CEO David Thodey, six months into the job following the resignation of Sol Trujillo, today announced a raft of changes aimed at growing the telco in key markets and improving customer service. Mr Thodey said it was a part of fresh strategy for Telstra, some of which had been announced in recent weeks.

“Today I am taking another step to organise Telstra around our core strategy: to compete in the fastest-growing markets in Australia and overseas, lead the industry by investing in new products and services, and deliver a better experience for our valued customers," Mr Thodey said.

Some of the key changes include the creation of new product units to help the company compete in the fixed line and mobile markets.

Another change announced includes the creation of a new “Customer Satisfaction, Simplification & Productivity” unit responsible for improving customer service.

Mr Thodey also said that Telstra would operate its New Zealand and Australian businesses as part of a single trans-Tasman market, while the company would also aim to increase its footprint in Asia, particularly China.

At 1016 AEDT, Telstra shares had risen 3c to $3.42.

Australian telco Optus reported an increase in net profit of 22% to $152 million for the six months to 30 September 2009, from the previous corresponding period ("pcp"). Meanwhile Optus’s parent company, Singapore Telecommunications Limited (SGT) reported an 8.9% jump in net profit to $1.9 billion for the six months to 30 September 2009 from the pcp.

Optus CEO, Paul O’Sullivan, said Optus had recorded four quarters of double-digit mobile service revenue growth.

”In addition, it continued to build profitable scale across its fixed networks with the fixed on-net telephony customer base now exceeding one million,” Mr O’Sullivan said.

“Optus added further scale in the quarter with the opening of the 200th Optus ‘yes’ store and with the announcement by Woolworths Limited that they would use the Optus mobile network to offer a prepaid mobile service across Australia,” Mr O’Sullivan added.

Optus ‘Mobile’ operating revenue grew 12% to $1.38 billion, with business and wholesale fixed revenue up 2.2%.

Free cash flow increased 2.5% to $271 million.

Looking to the Singapore based parent company, Singtel CEO, Ms Chua Sock Koong, said the company, not including one-off items and hedging expenses, posted a 14.4% increase in underlying profit to $1.658 billion.

”We had another quarter of double-digit growth in the group’s underlying net profit and this reflects the continued strength of the group to innovate with differentiated products and services and our agility in responding to challenging market conditions,” Ms Koong said.

”Our strong financial results were achieved amid a cautious economic climate and despite the negative currency impact.”

Looking ahead, Ms Koong said that taking into account the results of the group to date and the general improved economic outlook, the telco was now expecting that for the current financial year, the operating revenue of each of the Singapore and Australia businesses to grow at single-digit levels and EBITDA of the respective businesses to grow at low single-digit levels.

As at 1025 AEDT, Singtel shares had gained 4c to $2.30.

Telecom Corporation of New Zealand Limited (TEL) reported a drop in first quarter EBITDA that was in line with previous guidance of 4.1% to NZ$447 million versus the previous corresponding period (“pcp”). The company also maintained its FY10 adjusted EBITDA guidance at -1% to +2% compared with FY09.

However, Telecom said net earnings increased 9% in the same period to NZ$163 million, which was partly attributed to a NZ$43m one-off effect from changes in tax law. The company said a Southern Cross dividend of NZ$35m was received in the quarter, compared to NZ$39m in Q1 FY09.

Telecom said revenue for the quarter slid 6.5% on the pcp, to NZ$1,356 million, while operating expenses fell 7.7% to NZ$909 million.

CEO, Paul Reynolds, said EBITDA remained on track due to revenue growth in the mobile division as a result of a strong start for the XT mobile network, and the ongoing progress of the company’s cost out programme.

“We have been successful in a market that has seen a significant rise in competition and customer choice,” Mr Reynolds said.

“Telecom saw a net increase of 64,000 mobile customers during Q1, with 242,000 customers on XT at the end of its first full quarter of operation.”

Mr Reynolds added that there had been a 16% increase in average revenue per user on like for like customers.

Telecom said fixed broadband market growth has remained stable, at around 11%, with total connections on Telecom’s network reaching 899,000 during the quarter.

In regards to the Government’s fibre plans, Mr Reynolds said the company remains engaged at multiple levels of Government.

“The current structure makes it difficult for Telecom to participate effectively while balancing shareholders’ interests,” Mr Reynolds said.

“Discussions have emphasised our support for the Government’s vision and our belief that given the right structure we can partner with Government to deliver ultra fast broadband faster and more cost effectively, to more New Zealanders than anyone else, avoiding network duplication.”

Looking ahead, the company said guidance for adjusted group net earnings has increased from NZ$400m to NZ$440m for the year (previously NZ$370m to NZ$410m).

FY11 to FY13 EBITDA guidance was maintained, while Telecom declared a Q1 dividend of 6c per share.

At 1033 AEDT, Telecom shares were trading up 3c to $2.00.

Telstra Corporation Limited (TLS) reiterated full-year guidance provided in August but said its top line growth guidance has come under some pressure from the strength of the Australian dollar. The telco expects continued top and bottom line growth and free cash flow of $6 billion this financial year.

CEO, David Thodey, said guidance also excludes the impacts of any Government regulatory review or NBN outcomes and any unexpected outcomes from any ACCC wholesale pricing determinations.

“In conclusion … these are challenging times for our company, our industry and our nation,” Mr Thodey said.

“A lot has happened in the last 6 months – and we still have significant work to complete in the coming months.”

Mr Thodey said expects the strength of the local currency to also have some impact on the company’s top line revenue growth.

In regards to the issue of the National Broadband Network, Mr Thodey said the company remains positively and constructively engaged with the Government, but is under no illusions as to the challenges it faces.

“This is an extremely complex negotiation as it covers so many different aspects of our business,” Mr Thodey said.

He assured shareholders at the company’s AGM that the Board and management would not agree to any proposals on the NBN, or separation, unless the company is convinced that it would deliver fair value.

In August Telstra reported a 10.3% increase to full year profit to $4.1 billion versus the previous corresponding period. Revenue rose 2.9% to $25.4 billion in the same period.  

As at 1100 AEDT, Telstra shares were up 2c to $3.24.

Telstra Corporation Limited (TLS) reiterated guidance for the current financial year, saying it expected free cash flow of around $6 billion, while low single digit growth would be recorded in revenue, EBIT and EBITDA. The telco, however, cautioned overseas investors that the strong Aussie dollar would eat into overseas earnings for the group.

The new CEO, David Thodey, said fundamental changes to the company wouldn’t be made under his stewardship at this stage, however the company was set to reap the reward from investment in new technology.

“Telstra has invested $12 billion over four years in advanced technology, and now it’s time to take advantage of those investments to defend and grow the core business," Mr Thodey said.

"At its simplest, the next stage in Telstra's long-term strategy is to focus on satisfying customers, invest in new capabilities, and drive growth in new businesses.”

Mr Thodey said that strengthening the company’s position in the retail market would lessen its dependency on a favourable regulatory environment around the National Broadband Network (“NBN”).

Telstra outlined some key areas it would be targeting in the future. These include a focus on improved customer service as well improving fixed line telephone services with new, improved hardware.

Telstra would also focus on profitable and fast-growing markets, including online content, applications, products and services.

“Despite Telstra’s strengths we do not take our success for granted, but we believe that technology leadership and improved customer service will help us win and retain customers, grow the business and deliver shareholder value,” Mr Thodey concluded.

At the close of business yesterday, Telstra shares were trading at $3.24.