Telstra 2000 Annual Report Download - page 8

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6
Telstra’s profit for the year was a record $4,043 million >1999: $3,486 million
RESULTS
Financial Results. Before turning to our strategic
initiatives, it’s important to touch on the
company’s financials. Your company has produced
another record profit in a year best described as
increasingly competitive in a difficult regulatory
environment.Operating profit after tax and
before abnormals attributable to Telstra
shareholders was a record $4,043 million (last
year $3,486 million). In terms of earnings per
share this is equivalent to 31.4 cents per share.
Revenue totalled $19,840 million representing
an increase of 8.9 per cent.Earnings per share
for the year was 28.6 cents.This year’s result has
enabled your directors to declare a fully franked
dividend of 10 cents per share taking the total
dividend for the year to 18 cents per share.
Mobiles, data and our wholesale services
were the key performers in the result, with
international calling revenues declining again
as the service becomes commoditised after
strong competition.
Current Business Environment. It is
abundantly clear that the old days of Telstra
being the incumbent and only provider of
telecommunications are well and truly over.
Competition has produced changing behaviour
in our customers as they exercise more choice
in an increasing array of product and service
offerings. Changing regulation has opened up
much of Telstra’s infrastructure for use by our
competitors, some of whom are going further
and building their own networks; price
competition is increasingly fierce and there is
a very sharp spotlight on rural and regional
communications.
Our business is still very much underpinned
by traditional services, particularly voice.
However, for the first time at the half year
result we announced that revenues from
non-traditional services, such as data, text,
mobiles and internet had exceeded traditional
revenues, which include basic access and local
and distance calls.
Positioning the company for growth.Against
this background we have set ourselves rigorous
growth objectives which we intend to achieve
in two ways, through new businesses – chiefly
mobiles, data and internet – and by extending
our footprint internationally, particularly in the
Asia-Pacific region. We have also realigned the
company’s management structure to support
speed to market of products and services and
at the same time eliminated duplicated
activities in business units.
Broadbanding Australia for Data and Internet
Growth. Broadband is the next exciting wave
of technological innovation and it’s all about
superfast internet access. In practical terms this
means fantastic telecommuting, business data
services,networked games and video on demand.
And the potential doesn’t end there.
Change in revenue (in $millions)1
Revenue drivers +165
-77
-80
-116
-69
+355
+321
+44
-32
+202
+32
+52
+241