- Telco giants Telstra (TLS) has reported a drop in its operating earnings for the first half of FY22, however, there was strong growth for its mobile network
- Earnings before interest, depreciation and amortisation fell 14.8 per cent to $3.47 billion in the first half of FY22, with total income down 9.4 per cent to $10.9 billion
- CEO Andy Penn said the fall was on a one-off reduction in payments from the national broadband network
- Telstra’s 5G network is now more than twice the size of Telstra’s next nearest competitors, with more than 77.5 per cent of the population covered
- On the market this morning, Telstra is down 3.44 per cent and trading at $3.93 per share
Australian telco company Telstra (TLS) has reported a drop in its operating earnings, however, there was strong growth for its mobile network.
Earnings before interest, depreciation and amortisation (EBITDA) dropped 14.8 per cent to $3.47 billion in the first half of FY22, with total income down 9.4 per cent to $10.9 billion.
CEO Andy Penn said the fall was on a one-off reduction in payments from the national broadband network (NBN).
“Our reported total income includes declines of around $450 million in one-off NBN receipts and around $200 million in NBN commercial works, while our underlying results demonstrate the benefits of our T22 strategy,” he said.
The T22 strategy included 8000 job cuts to achieve $2.7 billion in savings by the end of this financial year.
Over the half, Telstra has already hit 80 per cent of metrics for its T22 strategy and is on track to hit its target savings.
Telstra’s 5G network is now more than twice the size of Telstra’s next nearest competitors, with more than 77.5 per cent of the population covered and almost 2.8 million 5G devices connected to its mobile network.
Mr Penn said these results reflected the positive momentum delivered through Telstra’s T22 strategy and put the company in a strong position as it transitions into T25.
“The results show we have stayed disciplined and focussed on delivering what we said we would. The benefits of T22 are flowing through for our customers and our shareholders,” he told the market on Thursday.
“As the nation has developed an ever-increasing reliance on digital connectivity, we are well placed to deliver the infrastructure, solutions and security needed to support Australia’s aspiration to become a world leading digital economy.”
Earlier this month, the telco giant invested in two major telecommunications infrastructure projects to support the nation’s digital economy and increase levels of connectivity across Australia.
On the market this morning, Telstra was down 3.44 per cent and is trading at $3.93 per share at 1:05 pm AEDT.