- Telstra (TLS) has announced its half-year results, which show COVID-19 continues to impact the company’s bottom line
- The telco giant ended December 31 with a 14.7 per cent drop in earnings before interest, taxes, depreciation, and amortisation (EBITDA)
- Revenue also dropped by 9.7 per cent to $10.99 billion over the first half of FY21, with profit also contracting by 2.2 per cent to $1.13 billion
- Telstra has also downgraded its full-year guidance for FY21, reducing both its total income and underlying EBITDA expectations
- Activities wise, the telco reported more than 50 per cent of its 5G network has been rolled out, with 75 per cent rollout expected to be completed by July
- Meanwhile, shareholders are set to bank an interim dividend of 8 cents per share on March 26
- Shares in TLS are trading up 2.68 per cent at $3.26 per share
Telstra (TLS) has announced its half-year results, showing the COVID-19 pandemic continues to impact the company’s bottom line.
The telco giant ended December 31 with an earnings before interest, taxes, depreciation, and amortization (EBITDA) of $4.07 billion, a drop of 14.7 per cent compared to the same period last year.
TLS’s revenue also dropped by 9.7 per cent over the same period, totalling $10.99 billion, while profit contracted by a more modest 2.2 per cent to total $1.13 billion at the end of H1 FY21.
The bad news didn’t stop there, with Telstra flagging downgraded full-year guidance for FY21, reducing both its total income and underlying EBITDA expectations.
Income dropped from an expectation of between $23.2 billion to $25.1 billion to a more subdued $22.6 billion to $23.2 billion, a decrease of $1.9 billion.
Underlying EBITDA also dropped from between $6.5 billion and $7 billion, down to a $6.6 billion to $6.9 billion range.
Activities wise, the telco giant reported more than 50 per cent of Australia is now covered by its 5G network and it expects to reach 75 per cent coverage by July.
Pleasingly, the company also reported its T22 strategy remains on track including its plan to reduce underlying fixed costs. They dropped by 6.6 per cent over H1 FY21, saving the telco $201 million.
“We responded strongly to the financial headwinds created by the NBN through our T22 strategy. This strategy is transforming Telstra while balancing the needs of our customers, our employees and our shareholders,” CEO Andrew Penn said.
“We are now less than 18 months from completing T22. We have achieved an extraordinary amount and Telstra today is a leaner, more responsive, and more
agile company than it has ever been,” he added.
TLS shareholders will bank an interim dividend of 8 cents per share on March 26, with that dividend made up of an ordinary 5 cents dividend and a special dividend of 3 cents.
Shares in Telstra Corporation are up 2.68 per cent following today’s half-year results announcement, trading at $3.26 per share at 12:04 pm AEDT.