Telstra raises earnings outlook on delayed NBN rollout pain
Bengaluru
TELSTRA raised its 2020 core earnings guidance on Monday as it anticipates the worst impact of the rollout of a state-owned broadband network to occur later than previously expected.
Australia's largest telco by market value said it expected 2020 underlying earnings before interest, tax, depreciation and amortisation to be A$7.4 billion (S$6.9 billion) to A$7.9 billion, from the previously announced range of A$7.3 billion to A$7.8 billion.
Telstra said National Broadband Network (NBN) Co's corporate plan for 2020 includes a reduction in the total number of premises forecast to be connected during the year to 1.5 million from 2 million. "Telstra no longer anticipates FY20 being the year of peak NBN headwind and now estimates this will occur in FY21," the company said in a statement.
Telstra, however, did not change its 2020 guidance for restructuring costs of A$300 million and capital expenditure in the range of A$2.9 billion to A$3.3 billion.
Telstra warned last month that the NBN rollout would cut its 2020 earnings by up to A$1 billion.
Telstra dominates Australia's mobile telephone and broadband markets, but profit from its mainstay fixed-line phone and Internet business is dwindling as the NBN replaces a copper system it had monopolised. Telstra must pay to use the new network. REUTERS
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Technology
Brokers’ take: DBS cuts Venture Corp price target after Q1 earnings miss
Garmin’s Q1 results beat on strong demand for fitness, auto products
Foxconn’s musical chairs sound like punk rock
US sets up board to advise on safe, secure use of AI
Regulate AI? How US, EU and China are going about It
Meta’s results are best viewed through rose-tinted AI glasses