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BRIEF-Telstra Corp Creates New Infrastructure Unit and Announces 8,000 Job Cuts

Published 20/06/2018, 08:48 am
© Reuters.  BRIEF-Telstra Corp Creates New Infrastructure Unit and Announces 8,000 Job Cuts
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June 20 (Reuters) - Telstra Corporation Ltd TLS.AX :

* CREATION OF A NEW WHOLLY OWNED INFRASTRUCTURE BUSINESS UNIT, 'INFRACO'

* MONETISATION OF UP TO $2 BILLION IN ASSETS OVER NEXT TWO YEARS TO STRENGTHEN BALANCE SHEET

* SAYS WILL INCREASE OF ITS PRODUCTIVITY PROGRAM BY A FURTHER $1 BILLION TO $2.5 BILLION COST OUT BY FY22

* FY19 EBITDA GUIDANCE OF $8.7 - $9.4 BILLION EXPECTED EXCLUDING RESTRUCTURING COSTS OF APPROXIMATELY $600 MILLION

* TELSTRA INFRACO WILL HAVE ANNUAL REVENUES AND EBITDA OF ABOUT $5.5 BILLION AND $3 BILLION RESPECTIVELY

* ANNOUNCES 8,000 NET REDUCTION IN EMPLOYEES AND CONTRACTORS AND REDUCTION IN 2-4 LAYERS OF MANAGEMENT

* WILL RETIRE ALL OF ITS MORE THAN 1,800 CONSUMER & SMALL BUSINESS PLANS AND INSTEAD INTRODUCING 20 CORE PLANS

* EXPECTS TOTAL COSTS WILL REMAIN FLAT OR REDUCE DESPITE ABSORBING MORE THAN $1.5 BILLION OF INCREASED NBN AVC/CVC COSTS

* TELSTRA INFRACO WILL ALSO COMPRISE TELSTRA'S NBN CO COMMERCIAL WORKS ACTIVITIES AND TELSTRA WHOLESALE, WITH A TOTAL WORKFORCE OF ABOUT 3,000

* TELSTRA INFRACO WILL CONTROL ASSETS WITH A BOOK VALUE OF ABOUT $11 BILLION

* EXPECTS CAPEX TO SALES RATIO TO BE 16 PERCENT TO 18 PERCENT IN FY19

* SEES FY19 INCOME TO BE IN RANGE OF $26.6 BILLION TO $28.5 BILLION

* INTENDS TO MAKE AVAILABLE INITIAL FUNDING OF UP TO $50 MILLION FOR TWO NEW EMPLOYEE TRANSITION PROGRAMS

* RECONFIRMS TOTAL DIVIDEND FOR FY18 WILL BE 22 CENTS PER SHARE

* SEES FY19 CAPEX TO BE IN RANGE OF $3.9 BILLION TO $4.4 BILLION

* TRANSITION UNDER TELSTRA2022 TO LIKELY ELIMINATE UPTO $500 MILLION IN SERVICE REVENUES OVER NEXT 3 YEARS

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