Telstra reaffirms guidance
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.
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