Join +750K new investors every month who copy stock picks from billionaire's portfoliosSign Up Free

UPDATE 1-Australia's Telstra raises earnings outlook on delayed NBN rollout pain

Published 02/09/2019, 10:23 am
Updated 02/09/2019, 10:30 am
© Reuters.  UPDATE 1-Australia's Telstra raises earnings outlook on delayed NBN rollout pain
TLS
-
HG
-

(Adds details on outlook, context)

Sept 2 (Reuters) - Telstra TLS.AX 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 ($5 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. 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. ($1 = 1.4806 Australian dollars)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.