Telstra reaffirms growth guidance

From
http://au.news.yahoo.com/thewest/bus...-digit-growth/



Telstra has reaffirmed its full-year financial guidance of low single digit
revenue growth.

Chief executive David Thodey also said his strategy would not lead to a
fundamental change in Telstra's direction, but recent investments in
technology upgrades would be used to improve customer service, expand into
developing and adjacent businesses, and offer online customer applications.

In a statement released in conjunction with its annual institutional
investor briefing, the country's largest telco said it expects to post low
single digit growth in revenue, earnings before interest, tax, depreciation
and amortisation (EBITDA) and EBIT in the current financial year.

Telstra said it would and maintain its EBITDA margin, but said the
appreciation of the Australian dollar had created pressure on revenue earned
from overseas subsidiaries.

No comment was made on the regulatory issues currently facing the company.

Telstra's four year-long IT transformation had largely been completed, at a
cost of about $12 billion, Mr Thodey said.

"The company requires continuity and stability in the current environment,"
he said.

"We must focus on our core business and our customers, this is where we
create value for shareholders.

"At its simplest, the next stage in Telstra's long-term strategy is to focus
on satisfying customers, invest in new capabilities, and drive growth in new
businesses.

"This will further differentiate Telstra from the competition, improving our
position in the retail market irrespective of regulatory settings and the
national broadband Network, and ultimately deliver shareholder value."

The IT upgrade would allow Telstra to improve customer service and move into
adjacent markets such as IT storage and web hosting for business and
government.

It would also seek to add value and services to its fixed-line telephony
offerings, such as touchscreen home phones that combine phone, internet and
media player services.

Mr Thodey said the Sensis and Telstra Media businesses remain core assets
and are performing well.