Disappointing half yearly results for Telstra

Telstra has just released its earnings results for the six months to December 2009. While the results were quite disappointing for the telco, it expects things to pick up in the future.

Telstra experienced a sales revenue decline of 2.5 per cent or $321 million to $12,323 million for the period. In addition, it saw an EBITDA decline of 0.3 per cent or $17 million to $5,317 million.

But the news was not all bad for Telstra with an increase in both wireless broadband and IP access revenue.

According to the results issued to the Australian Securities Exchange, Telstra had a 32 per cent growth in wireless broadband revenue to $368 million. Customer numbers also increased to 1.3 million for the period. IP access revenue growth was also experienced with a 21 per cent rise to $393 million.

“Overall, we have seen a decline in adjusted revenues in the first half despite good performances in mobile data, wireless broadband and IP data. This reflects challenging market conditions due to changing calling behaviours and stronger price competition,” said Telstra CEO, David Thodey.

“Telstra will continue to invest in new products and services and improved customer service so we can return to revenue growth, and regain the market share that we have lost in this half.”

Thodey was confident that the company will see signs of growth in the future.

“A key part of our strategy is to offer new products and services. We will continue to invest in a string of new products like Telstra T-Box and Telstra T-Hub that differentiate us in the market. These new products, along with ongoing upgrades to our Next G network, will help us regain momentum through fiscal 2011.”

“New product bundles and competitive pricing offers introduced by Telstra over the past few months have already been well received by our customers, as well as attracting interest from new customers.”

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