Telstra has reported declines in revenue across its mobile and fixed broadband businesses but claims has reached a turning point in its finances heading into the 2022 financial year.
In the financial year ended 30 June 2021, the telco reported revenue of $23.1 billion, down 11.6 percent from $26 billion last year. EBITDA also declined 14.2 percent to $7.6 billion, while net profit after tax is up 3.4 percent to $1.9 billion.
Telstra revealed revenues across the business were down for the period, with mobile and wholesale fixed broadband taking the biggest hits.
Wholesale fixed declined 27.6 percent to $1.87 billion, citing NBN “headwinds” and declines from legacy calling and commercial works. Mobile declined 8 percent to $9.3 billion from $10 billion last year, citing a $750 million hardware expense.
Fixed - consumer and small business declined 6.8 percent to $4.7 billion, while Fixed - enterprise fell 9.3 percent to $3.7 billion. The global business saw the second biggest decline of 13.3 percent to $1.5 billion.
Telstra chief executive Andrew Penn said the results were in line with guidance and called 2021 a “significant” year for the company. He cited increases in underlying EBITDA and net profits as some positives in the results.
“We are clearly building financial momentum and I am very pleased to be able to say that our underlying business will return to full-year growth in FY22,” Penn said.
“We have confidence because we see strong performance in our mobile business, continued discipline on our cost reduction target, green shoots in some of our growth businesses and a diminishing impact from the NBN.”
Penn added that the decision to transform Telstra as part of the ongoing T22 strategy is “clearly paying off.”
“We set ourselves big ambitions and we have achieved what we said we would deliver. We have done the hard transformational work and built the capabilities to take advantage of the opportunities ahead,” he said. “Telstra is fundamentally a different organisation.”
Penn said the strategy had completed or is at least on track to deliver 80 percent of the T22’s “scorecard matrix”.
“We have transformed Telstra to become a simpler, more digitally enabled and leaner business,” he said.
“We are also progressing our transition to full ownership of Telstra-branded licensee stores across Australia, with agreements reached with almost all licensees and negotiations continuing with Vita Group.”
Enterprise customers have also benefited from Adaptive Networks and Adaptive Mobility
products which provide more flexibility to customers, according to Penn.