Finance

Telstra Corporation Ltd (TLS) declares 8c dividend, report just in

The Telstra Corporation Ltd (ASX:TLS) share price will be in focus today following the release of its financial report.

For context, the broader Australian share market or S&P/ASX 200 (ASX: XJO) was trading at 7088.2, up 0.47%.

About Telstra Corporation Ltd

Telstra is our country’s oldest telecommunications business, having built the first telegraph line in 1854.

In 2019, it provides more than 17 million retail mobile services, around 5 million retail fixed voice services (e.g. home phones) and 3.6 million broadband services. Telstra also has operations in eHealth, network applications and subsea cabling. 

In the Rask video above, Owen explains the difference between ‘underlying’ or ‘normalised’ results and ‘statutory’ results. Knowing the difference between these two numbers is essential to understanding a financial report. Take one of our free finance courses by clicking here.

Key Results

This period Last period Change
Revenue 13,413 13,798 -2.79%
Profit 1,139 1,233 -7.62%
Operating cash flow 2,733 2,817 -2.98%
Dividends 8 cents 8 cents 0%

Source: Telstra Corporation Ltd announcements; author calculations, AUD millions unless otherwise stated.

As can be seen above, the company’s revenue came in at $13,413 million, down $385 million. Telstra Corporation Ltd’s profit was $1,139 million, down $94 million.

On the cash flow statement, which is an important financial statement since it represents the underlying health of a business, operating free cash flow was $2,733 million, down $84 million. Finally, dividends declared by the company stood at 8 cents.

In his commentary, Telstra CEO Andy Penn stressed the company’s focus on its T22 strategy and the rollout of 5G.

“This year we will reach the half-way point of our T22 strategy and we have built good momentum in delivering for our customers, our employees and our shareholders,” Penn said.

“We know that there is more work to do and we still face challenges within our business and across the telecommunications sector. However, our T22 strategy gives us a detailed understanding of what we need to achieve and how we will get there.”

Alongside Optus, owned by SingTel, Telstra is the most ambitious telco pursuing superfast 5G mobile technology.

“Telstra’s ongoing research and investment continues to make Australia a global leader in 5G,” Penn added.

“We are continuing with our rollout and now have 5G coverage in selected areas in 32 cities and regional areas, on track for our target of 35 by the end of FY20.”

Telstra has sold some 100,000 devices capable of tapping into the 5G mobile tech, which will deliver speeds far in excess of what most users get on their NBN plans. The speed and reliability of 5G mobile offers the potential for users to ‘leapfrog’ an NBN connection and rely solely on 5G setups for their households and small businesses.

Today, investors will also be watching at 10:30 am to hear the verdict of TPG Telecom Ltd’s (ASX: TPM) attempt to merge with Vodafone Hutchison. The Federal Court will deliver its verdict today.

Telstra shares were last seen trading at $3.82, giving the company a market capitalisation more than $40 billion.

Online Value Investing Course - FREE!

How do you value an investment? Do you really understand what you’re investing in and why?

We’ve just updated our FREE business valuation course and made it available to investors like you. Complete with models, templates and tools, simply click here to access the course.

It’s completely free!

WordPress Theme built by Shufflehound.

INFORMATION WARNING

Please note, this website provides news and factual information only. It is not a source of financial or investment advice of any kind.Before acting on any of the information you should always speak with a licensed and trusted financial adviser who is authorized to give you financial advice. Check ASIC’s professional registers (asic.gov.au) for a list of licensed financial advisers and organisations.Never invest in a fund/ETF or buy a financial product (insurance, brokerage account, etc.) before you read the Product Disclosure Statement (PDS). The PDS document is your source of truth and can be found on the company’s website. Read it before you act.Finally, always remember that the future is uncertain and investing in anything is risky. Past performance is a poor guide for future returns. For more information, read our Terms & Conditions.