Invest
Telstra profits down by 40%
Long-time investor favourite Telstra has suffered a nearly 40 per cent blow to its yearly profits, with the news not softened by a warning for further pain associated with the National Broadband Network’s construction.

Telstra profits down by 40%
Long-time investor favourite Telstra has suffered a nearly 40 per cent blow to its yearly profits, with the news not softened by a warning for further pain associated with the National Broadband Network’s construction.

In a new end of financial year report, Telstra’s net profit after tax fell by 39.6 per cent, decreasing its profits to $2.1 billion for the full financial year, credited in part to issues associated with the construction of the National Broadband Network.
Income has also fallen to $27.8 billion, a reduction of 3.6 per cent.
The final results mean investors will now receive a final dividend of 8 cents per share from the last six months after receiving the same dividend six months ago.
In the result announcement, Telstra estimated that the company’s earnings before interest, tax, depreciation and amortisation was down by $1.7 billion since FY16.
It also estimated it’s around 50 per cent of the way through absorption of the recurring financial impact of the NBN.
Telstra CEO Andrew Penn has also noted increasing competition as playing a role in the final figures.
Calling FY19 “a pivotal year” for Telstra, Mr Penn said: “Notwithstanding the intense competitive environment and the challenging structural dynamics of our industry, it is a year in which I believe we can start to see the turning point in the fortunes of the company from the changes we have embraced.”
Despite any disappointment in the results, the CEO was buoyed by the launch of new products and the strategy announced by the blue chip in June of last year, which has been labelled “T22”.
“We launched 5G, the next generation of telco technology and the platform for future growth for us and our customers. And at the start of the year, we commenced our T22 strategy, where we have made very significant progress,” he continued.
Mr Penn also took the time to note Telstra as having good momentum in reducing costs, with a $1.17 billion reduction since FY16.
According to the CEO, this keeps the telco on track to achieve its $2.5 billion net cost reduction target by FY22.
About the author

About the author


Stock market
US lawmakers quiz key GameStop players
Notorious retail investor Keith Gill is facing a grilling from the US congress and the possibility of a class action lawsuit due to his alleged part in the GameStop saga, with policymakers convinced h...Read more

Stock market
Facebook’s news ban feared to have implications for the sharemarket
Facebook’s move to restrict the sharing and viewing of news in Australia could have huge implications for the sharemarket, an expert has said, as Treasurer Josh Frydenberg readies himself for anothe...Read more

Stock market
Stock market bubble fears overblown: Vanguard
Fears of a stock market bubble are “overblown” despite equity markets around the world closing in on all-time highs, an industry analyst states. ...Read more

Stock market
Experts blast Treasurer’s plan to permanently ease disclosure laws
Sharemarket disclosure laws could be permanently relaxed as the Treasurer looks to shield businesses from disgruntled shareholders, but legal experts have labelled Frydenberg’s reasoning “madness...Read more

Stock market
Is your portfolio climate change ready?
The vast majority of investors believe climate change will have an impact on their portfolio, yet not all investors are readying their asset allocation to take advantage of a net zero world, new resea...Read more

Stock market
Sharemarket penalises mining firms abusing human rights
The sharemarket has been a powerful tool in holding to account mining companies engaged in human rights violations, but informational campaigns by civil society groups and the media are the real aware...Read more

Stock market
ASX warns against the ‘gamification’ of investing
ASX chief executive Dominic Stevens has warned against the gamification of equities, as young traders lock their gazes on chasing returns at the expense of any real sharemarket knowledge. ...Read more

Stock market
What is a stock market bubble?
If history is to be trusted, stock market bubbles inevitably burst and end in a stock crash, with devastating effects on your portfolio. How can you protect your investment from the negative effects o...Read more

Stock market
US lawmakers quiz key GameStop players
Notorious retail investor Keith Gill is facing a grilling from the US congress and the possibility of a class action lawsuit due to his alleged part in the GameStop saga, with policymakers convinced h...Read more

Stock market
Facebook’s news ban feared to have implications for the sharemarket
Facebook’s move to restrict the sharing and viewing of news in Australia could have huge implications for the sharemarket, an expert has said, as Treasurer Josh Frydenberg readies himself for anothe...Read more

Stock market
Stock market bubble fears overblown: Vanguard
Fears of a stock market bubble are “overblown” despite equity markets around the world closing in on all-time highs, an industry analyst states. ...Read more

Stock market
Experts blast Treasurer’s plan to permanently ease disclosure laws
Sharemarket disclosure laws could be permanently relaxed as the Treasurer looks to shield businesses from disgruntled shareholders, but legal experts have labelled Frydenberg’s reasoning “madness...Read more

Stock market
Is your portfolio climate change ready?
The vast majority of investors believe climate change will have an impact on their portfolio, yet not all investors are readying their asset allocation to take advantage of a net zero world, new resea...Read more

Stock market
Sharemarket penalises mining firms abusing human rights
The sharemarket has been a powerful tool in holding to account mining companies engaged in human rights violations, but informational campaigns by civil society groups and the media are the real aware...Read more

Stock market
ASX warns against the ‘gamification’ of investing
ASX chief executive Dominic Stevens has warned against the gamification of equities, as young traders lock their gazes on chasing returns at the expense of any real sharemarket knowledge. ...Read more

Stock market
What is a stock market bubble?
If history is to be trusted, stock market bubbles inevitably burst and end in a stock crash, with devastating effects on your portfolio. How can you protect your investment from the negative effects o...Read more