Telstra reaffirms its full year guidance
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AAP
2009-10-28
Telstra Corporation Ltd has reaffirmed its full year financial guidance of low, single-digit revenue growth.
Chief executive David Thodey also said his strategy would not lead to a fundamental change in Telstra's direction, but recent investments in technology upgrades would be used to improve customer service, expand into developing and adjacent businesses, and offer online customer applications.
In a statement released in conjunction with its annual institutional investor briefing, the country's largest telco said it expects to post low single digit growth in revenue, earnings before interest, tax, depreciation and amortisation (EBITDA) and EBIT in the current financial year.
Telstra said it would and maintain its EBITDA margin, but said the appreciation of the Australian dollar had created pressure on revenue earned from overseas subsidiaries.
No comment was made on the regulatory issues currently facing the company.
Telstra's four year-long IT transformation had largely been completed, at a cost of about $12 billion, Mr Thodey said.
"The company requires continuity and stability in the current environment," he said.
"We must focus on our core business and our customers, this is where we create value for shareholders.
"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.
"This will further differentiate Telstra from the competition, improving our position in the retail market irrespective of regulatory settings and the national broadband Network, and ultimately deliver shareholder value."
The IT upgrade would allow Telstra to improve customer service and move into adjacent markets such as IT storage and web hosting for business and government.
It would also seek to add value and services to its fixed-line telephony offerings, such as touchscreen home phones that combine phone, internet and media player services.
Mr Thodey said the Sensis and Telstra Media businesses remain core assets and are performing well.
