TIDM93YM
RNS Number : 5823J
Telstra Corporation Ld
17 August 2023
17 August 2023
RNS Office of the Company Secretary
Level 41, 242 Exhibition Street
MELBOURNE VIC 3000
AUSTRALIA
General Enquiries 613 8647 4838
companysecretary@team.telstra.com
Investor Relations
Tel: 1800 880 679
investor.relations@team.telstra.com
ELECTRONIC LODGEMENT
Telstra delivers continued growth and positive momentum
In accordance with the Listing Rules, the attached release by
Telstra Group Limited, is provided for the information of Telstra
Corporation Limited noteholders.
Authorised for lodgement by:
Sue Laver, Company Secretary
Telstra delivers continued growth and positive momentum
Thursday 17 August 2023 - Telstra today delivered its Full Year
Results for financial year 2023, showing continued financial growth
and positive momentum through the first year of its T25
strategy.
Financial performance in FY23 included:
- Total income ([i]) of $23.2 billion (+5.4%)
- Reported and Underlying EBITDA ([ii]) of $7.9 billion (+8.4%) and $8.0 billion (+9.6%)
- Net Profit After Tax (NPAT) of $2.1 billion (+13.1%)
- Reported and Underlying ([iii]) ROIC of 7.9% (+0.8pp) and 8.1% (+1.1pp)
- Earnings Per Share (EPS) of 16.7 cents (+16%)
Telstra CEO Vicki Brady said Telstra's T25 strategy was on track
overall, including its growth ambitions in underlying EBITDA and
EPS.
"Our mobiles business remains central to our growth and
continues to perform very strongly. Our infrastructure,
international, Consumer and Small Business (C&SB) fixed line
and health businesses also grew earnings. At the same time, there
are aspects of our Enterprise fixed business that are experiencing
headwinds.
"We remain disciplined on reducing our costs, particularly
considering the external economic environment," said Ms Brady.
On the back of continued growth in the year, the Board resolved
to pay a fully franked final dividend of 8.5 cents per share,
bringing total dividends for the year to 17 cents and representing
a 3 per cent increase on the prior corresponding period. The final
dividend is consistent with Telstra's policy to maximise the fully
franked dividend and seek to grow it over time.
Progress on T25 strategy
The positive progress in the year was reflected in Telstra's T25
scorecard, which showed the company was on track to deliver the
majority of T25 objectives.
"In a few months' time we will hit the halfway point in
delivering our strategy and the response from customers tells me we
are absolutely on the right path," said Ms Brady.
"We continue to see the positive impact of product
simplification, digitisation, answering consumer and small business
calls in Australia, and bringing our retail stores in house.
"Our Strategic Net Promoter Score increased four points during
the year, Episode Net Promoter Score is at historic highs, and we
achieved our strongest reputation result in 15 years. Australians
are beginning to see a change in us, driven by improvements in
customer experience, continued network leadership, and our strength
in cyber security.
"Telstra continues to lead the industry on stopping scams, and
our Cleaner Pipes program is detecting and blocking more email, SMS
and phone scams than ever before. We are now blocking more than 9
million scam calls and around 20 million scam SMS each month. We
have also taken steps to improve the way we collect and retain
customer ID data to help reduce the risk of cybercrime for our
customers.
"As a result of customer experience improvements, customer
complaints reduced to a record low in the year. Complaints from
Telstra's Consumer & Small Business customers to the
Telecommunications Industry Ombudsman reduced by more than a third
on the prior year, and 98 per cent of Telstra Enterprise billing
disputes are now resolved within one billing cycle.
"I am proud of our progress on customer service, but I also know
we have more work to do, and we are accelerating to get there
faster.
"The year ahead will be critical for us, with a lot to deliver.
We will continue to prioritise activities with the greatest impact
on customer experience and invest in the capabilities and assets we
need to deliver sustainable growth," said Ms Brady.
During the year significant progress on T25 also included:
-- 5G population coverage reached the FY23 target of 85 per
cent, and 41 per cent of mobile traffic was on 5G. Total mobile
coverage at the end of FY23 was 2.72 million square kilometres,
after adding 80,000 square kilometres in the last two years.
-- Deals signed with Low Earth Orbit satellite providers OneWeb
and Starlink mean Telstra will soon deliver new and improved
services in regional and remote Australia.
-- Construction was well underway on Telstra's new intercity
fibre project, with strong interest from hyper-scalers, other
operators, satellite providers and national enterprises.
-- Absolute scope 1+2 emissions have now been reduced by 30 per
cent from an FY19 baseline - a great result towards the ambition to
reduce absolute emissions by at least 50 per cent by 2030.
Infrastructure value creation
Telstra completed its corporate restructure in January 2023 and
Ms Brady said Telstra had achieved the three goals it set when
establishing InfraCo: creating transparency of the infrastructure
business, running it as a standalone business, and providing
optionality.
"We have created a strong digital infrastructure operator and
are seeing strong customer demand for our infrastructure, while our
customers' needs and long-term demands continue to evolve," said Ms
Brady.
"This is being shaped by the shift to the cloud and rapid AI
adoption driving data centre and edge requirements, along with
needs for domestic fibre and undersea cable.
"After thoroughly examining alternatives, we have concluded that
the greatest value to be created for shareholders is by maintaining
the current ownership structure of InfraCo Fixed, for at least the
medium term.
"Our focus remains on delivering long-term, sustainable growth,
and the objectives and principles of our capital management
framework, including seeking to grow our dividend. InfraCo Fixed
plays an important role in enabling this, particularity in an
inflationary environment."
Looking beyond T25
Ms Brady said that Telstra had a critical role to play in
Australia's future, and the significance of that role will only
grow.
"A s connectivity increasingly underpins the way we live and
work, Telstra is in a strong position to play an important role in
Australia's digital future," said Ms Brady.
" The infrastructure investments we are making, including our
inter-city fibre network and submarine cable network, will underpin
a more digitised future and see us strategically positioned for
growth.
"We are working with customers across industries to help them to
digitise and unlock productivity gains that flow through to the
national economy and to global markets through our international
business.
"We also continue to invest in capabilities and partnerships to
grow our offering in areas including Artificial Intelligence, data
analytics, Internet of Things, and cyber security, and I am
optimistic about the potential for growth in these areas beyond
T25.
"At the same time, we are bringing new and better connectivity
options to regional and remote areas that help close the digital
divide and lift digital inclusion."
FY24 focus areas and financial guidance
Ms Brady said she was proud to lead a highly capable team and of
what it had achieved in the year, including continued growth,
progress on T25, and a solid foundation for growth beyond T25.
"Looking ahead to FY24, lifting customer experience remains my
top priority, and I believe that if we are successful in that, we
will in turn achieve our growth ambitions.
"While our cost reduction ambition is being challenged by high
inflation, we still expect to achieve the large majority of this by
FY25. We remain absolutely committed to delivering our FY25
underlying EBITDA and EPS growth ambitions.
"I am very optimistic about the role we can play in Australia's
digital future. By investing to underpin the digital economy and
bring better connectivity to regional and remote areas, we will
create value for our customers, our shareholders, and for the
nation," said Ms Brady.
Telstra provided the following financial guidance ([iv]) for
FY24:
- Total income of $22.8 to $24.8 billion
- Underlying EBITDA (ii) of $8.2 to $8.4 billion
- Capex ([v]) of $3.6 to $3.7 billion
- Free cashflow after lease payments (FCFaL) ([vi]) of $2.8 to
$3.2 billion
Telstra media contact: Telstra investor contact:
Steve Carey, General Manager Nathan Burley, Head of Investor
Media Relations
M: +61 413 988 640 M: +61 457 529 334
E: media@team.telstra.com E: investor.relations@team.telstra.com
Reference number: 028/2023
[i] Total income excluding finance income
[ii] Underlying EBITDA excludes guidance adjustments, and in
FY23 and prior years also excludes net one-off nbn DA receipts less
nbn net C2C. Guidance adjustments include material one-offs, such
as mergers and acquisitions, disposals, impairments, spectrum,
restructuring costs and such other items as determined by the Board
and management. Refer to Full year results and operations review -
guidance vs reported results reconciliation which details the
adjustments made for the current and comparative period to reflect
performance on the basis on which we provided guidance to the
market for FY23 (set out in our ASX announcement titled "Financial
results for the Full year ended 30 June 2023" lodged with the ASX
on 17 August 2023)
[iii] Underlying ROIC defined as NOPAT as a percentage of total
capital, excluding net one-off nbn receipts and guidance
adjustments (as defined above) less tax
[iv] This guidance excludes material one-offs, such as mergers
and acquisitions, disposals, impairments, spectrum, restructuring
costs and such other items as determined by the Board and
management.
[v] Capex is measured on an accrued basis and excludes spectrum
and guidance adjustments, externally funded capex, and capitalised
leases
[vi] Free cashflow after lease payments defined as 'operating
cash flows' less 'investing cash flows' less 'payments for lease
liabilities' and excludes spectrum and guidance adjustments.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
MSCEAFPXFAEDEEA
(END) Dow Jones Newswires
August 17, 2023 02:00 ET (06:00 GMT)
Telstra 2.5% 23 (LSE:93YM)
Gráfica de Acción Histórica
De Nov 2024 a Dic 2024
Telstra 2.5% 23 (LSE:93YM)
Gráfica de Acción Histórica
De Dic 2023 a Dic 2024
