egolinews.com

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.

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