Feeds

Telstra pumps up mobile war chest

Tidies up VHA mess

New hybrid storage solutions

Telstra has swept up the fragmenting mobile market taking on a record 1.66 million new mobile users during the year, pushing mobile revenue growth by 10.7 percent to $AU8.1 billion.

The carrier posted a full-year net profit that was above market forecasts, of $AU3.2 billion, although still down 17 percent on last year.

“We have seen the company return to revenue growth and expect the momentum across the business to continue in 2012,” Telstra CEO David Thodey said.

The strong mobile growth offset the $AU462 million loss from the carrier’s dwindling fixed telephony business, he added.

“Two million new mobile customers joined us across our domestic markets and also in Hong Kong. So that's very gratifying and shows that we're really, I think, addressing a tremendous market opportunity,” Thodey said.

Many of the acquired mobile customers came from VHA which has lost around 375,000 customers due to a year of prolonged coverage and technical issues.

Thodey was focused on keeping up the heat on competitors and said that launching the LTE service later in the year would keep Telstra competitive, offering a more efficient technology.

"The cost per bit is significantly lower on an LTE network as opposed to a HSPA+ network. So it's all about the efficiency of carrying data on the network. LTE is just a far more efficient technology in terms of the cost base. And remember, for us to be able to maintain margins in that market, we really need to be driving down costs on the network," he said.

Thodey said that new sources of growth would be coming from the significant investments in cloud computing, implementing a digital strategy at Sensis, offering Foxtel content across its T-Box services and restructuring the Asian Reach network assets.

T-Box, the carrier’s new IPTV service reported 1.8 million movies downloaded, 190,000 T-Box sales with 25 percent of new broadband bundle customers including T-Box in their package.

Sensis, which launched a new digital strategy in March, has not yet pulled in the SME advertising market as hoped. Sensis’ revenue declined by 6.4 percent to $AU1.7 billion with an EBITDA decline of 9.4 percent to $AU993 million.

Thodey forecast that the restructuring initiatives already in place will continue to bear fruit in 2012. “The year will see productivity and other benefits from a continuing simplification program,” he said. In fiscal 2012, the company expects to return to full year earnings growth with low single digit revenue growth and low single digit EBITDA growth.

“Telstra’s long-term strategy to win customers, improve customer satisfaction, simplify the company and develop growth businesses remains on track, putting us in a strong position as the National Broadband Network rolls out,” he concluded.

Thodey declined to offer any opinion on the federal opposition's proposed "alternative" NBN, saying that the company's role was to work under whatever regulatory regime existed under the government of the day. ®

The next step in data security

More from The Register

next story
Phones 4u slips into administration after EE cuts ties with Brit mobe retailer
More than 5,500 jobs could be axed if rescue mission fails
JINGS! Microsoft Bing called Scots indyref RIGHT!
Redmond sporran metrics get one in the ten ring
Driving with an Apple Watch could land you with a £100 FINE
Bad news for tech-addicted fanbois behind the wheel
Murdoch to Europe: Inflict MORE PAIN on Google, please
'Platform for piracy' must be punished, or it'll kill us in FIVE YEARS
Phones 4u website DIES as wounded mobe retailer struggles to stay above water
Founder blames 'ruthless network partners' for implosion
Found inside ISIS terror chap's laptop: CELINE DION tunes
REPORT: Stash of terrorist material found in Syria Dell box
Sony says year's losses will be FOUR TIMES DEEPER than thought
Losses of more than $2 BILLION loom over troubled Japanese corp
Show us your Five-Eyes SECRETS says Privacy International
Refusal to disclose GCHQ canteen menus and prices triggers Euro Human Rights Court action
prev story

Whitepapers

Providing a secure and efficient Helpdesk
A single remote control platform for user support is be key to providing an efficient helpdesk. Retain full control over the way in which screen and keystroke data is transmitted.
WIN a very cool portable ZX Spectrum
Win a one-off portable Spectrum built by legendary hardware hacker Ben Heck
Saudi Petroleum chooses Tegile storage solution
A storage solution that addresses company growth and performance for business-critical applications of caseware archive and search along with other key operational systems.
Protecting users from Firesheep and other Sidejacking attacks with SSL
Discussing the vulnerabilities inherent in Wi-Fi networks, and how using TLS/SSL for your entire site will assure security.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.