TELSTRA GROUP LIMITED - Interim / Quarterly Report 2004

12/02/2004

Office of the Company Secretary

The Manager Company Announcements Office Australian Stock Exchange 10th Floor, 20 Bond Street SYDNEY NSW 2000

Level 41 242 Exhibition Street MELBOURNE VIC 3000 AUSTRALIA

Telephone 03 9634 6400 Facsimile 03 9632 3215

Dear Sir or Madam

In accordance with the listing rules, I enclose an announcement for release to the market.

This Announcement has been released simultaneously to the New Zealand Stock Exchange.

North Grahi

Douglas Gration Company Secretary

Telstra Corporation Limited ACN 051 775 556 ABN 33 051 775 556

(Strillions except EBITE	an M	A SO	%∆∗
Sales Revenue	10.53	mw	(0.1)
Domestic Sales Revenue	縣縣	Đm	1.8
Operating Expenses	R	5.	(4.1)
EBITDA	e.	B.	3.9
EBIT	q.	A.	3.0
NPAT&MI	Z.	PA	5.7
EBITDA Margin (%) ¹	26.	60K	2.0
Free Cash Flow ²	Œ.	ZR.	18.2

(\$ billions except EP	1HOJ.	ARAM	% ∆*
Sales Revenue	40.6	n.	(0.1)
EBIT	24.	3.	38.1
NPAT & MI1	Single Street	PR.	93.7
EPS (cents)	er.	ípa:	94.6
Operating CAPEX	m.	罵	(10.7)
Ordinary DPS (cents) ²	F	靍	8.3

Underlying Results
(\$ billions except EBITIA Martin)	4100	A POLE	$\%$ A*
Sales Revenue	105	ZU.	(0.1)
Underlying Domestic Sales Revenue	95	₿W	1.8
Operating Expenses	52	RE	(4.1)
EBITDAY	54	File	3.9
EBIT	R.	R)	3.0
NPAT&MI	PII.	24	5.7
EBITDA Margin (%)1	ZRZ.	A DZ	2.0
Free Cash Flow ²	e.	■	18.2
Margin expansion % calculated on actual numbers Absolute change in % calculation		driven by Operating cost reductions	®elstra

$(S$ millions)	1803	1,200	$\%$ $\Delta^*$
Underlying Sales Revenue	10.468	10ZLE	(0.1)
Less International	R	567
Domestic Sales Revenue	1.377	Qyaq	0.9
Less: NDC/Cable Recovery	D	鹤
Underlying Domestic Sales Revenue	9628	BROB	1.8

Undalying Sales
Movement A\$		Giovania evenue frant	1988 - Samuel Albert III, Amerikaansk konstantint (
	H6.	Total mobiles	THE	69
闂		inche de sobions	145	181
68		FRANK	IRONA	7
		Sensis (Advertising Directories)	.	57
-25		ISDN	ETA	Tan
William Street		Other Sales & Service	W	Kara
$-107$ PX-893m		HKCSL	KY a8	MA
Strong Growth in mobiles, Internet & IP.		FX impacting HK CSL		elstra

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1989 - Johann Harry Harry Harry Harry Harry Harry Harry Harry Harry Harry Harry Harry Harry Harry Harry Harry

		Total Revenue	非正面			MASTERY TIL	A THURA
(AS militans)		1803 1804	ARDES AND, WARDED ARD
CSL.	507	377	m	PZ.	269.WW	SANTA STATE	ma kit
Reach ⁽²⁾			(26)		1969
TelstraClear	278	283	F.	HY	(Va)	W	451 20
Other Cons. & Equity Acc. Op.	88	60	mn	S. M	44.
Total	86O	72T)	ll Gar	HK	PERSID	W
Carrying value on Telstra's balance sheet after consolidation adjustment

	Credit Ratings - Long term > 1 year Outlook Stable $\sum_{i=1}^{n}$	Mootvs $A2$ 3 Stable	l itali AA. Negative
	Debt Position	24 DA
۰	Gross Debt	12493
۰	Net Debt (defined as Grass Debt less interest bearing).	THE STOP
۰	Shareholders funds	161KG	Termologie Termologie
٠	Net Debt to Market Value	MARGE	ang a verman
٠	Net debt/Shareholders funds	Tell
٠	Net debt /Book capitalisation	1745
۰	Interest cover (EBITDA/ Net Interest*)	Kø