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TELSTRA GROUP LIMITED — Capital/Financing Update 2009
Dec 17, 2009
65927_rns_2009-12-17_61362b16-993e-4be0-9f39-196fbecad503.pdf
Capital/Financing Update
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18 December 2009
The Manager
Company Announcements Office Australian Securities Exchange 4[th] Floor, 20 Bridge Street SYDNEY NSW 2000
Office of the Company Secretary
Level 41 242 Exhibition Street MELBOURNE VIC 3000 AUSTRALIA
General Enquiries 08 8308 1721 Facsimile 03 9632 3215
ELECTRONIC LODGEMENT
Dear Sir or Madam
Telstra revises fiscal 2010 sales revenue guidance
In accordance with the listing rules, I attach an announcement for release to the market.
Yours sincerely
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Carmel Mulhern Company Secretary
Telstra Corporation Limited ACN 051 775 556 ABN 33 051 775 556
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Telstra revises fiscal 2010 sales revenue guidance
Following the continuation of trends seen in the second half of fiscal 2009, Telstra now expects sales revenue in fiscal year 2010 to be flattish compared to fiscal year 2009. The major drivers of the lower-than-expected growth are:
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The strength of the Australian dollar;
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Tough operating conditions in Hong Kong;
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Strong domestic competition driven by ULL growth and very competitive mobile offers;
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An accelerated move to wireless-only homes which is impacting revenue in PSTN and fixed broadband products.
We expect negative sales revenues in the first half of the fiscal year for the reasons above. This forecast includes the impact of the sale of KAZ last year.
All other guidance measures remain unchanged - importantly the company remains confident of achieving its 2010 free cashflow target of $6 billion.
Revised 2010 guidance is as follows:
| Measure | 2010guidance on 2009 levels |
|---|---|
| Sales revenue | Flattish(previouslylow single-digitgrowth) |
| EBITDA | Low single-digitgrowth |
| EBITDA margin | Maintained |
| EBIT | Low single-digitgrowth |
| Accrued capex to sales revenue | Around 14% |
| Free cashflow | $6 billion |
Investor Relations contact: +61(3) 9634 8190 email: [email protected]
Telstra Corporation Limited ACN 051 775 556 ABN 33 051 775 556