Telstra 2008 Annual Report Download - page 33

30
Telstra Corporation Limited and controlled entities
Full year results and operations review - June 2008
The effective tax rate in fiscal 2008 has also reduced by 2.4 percentage points to 27.8% (which is a lower rate when compared with
the Commonwealth statutory income tax rate of 30.0%) mainly due to the above items.
During the current year, we have paid a total of $1,564 million of tax instalments for the Telstra Tax Consolidated Group relating
to the last quarter of fiscal 2007 and the first three quarters of fiscal 2008. Franking credits of $1,493 million were used when we
paid our final 2007 ordinary dividend and 2008 interim dividend. In addition, the 2007 income tax return refund and amendments
of prior period income tax returns have resulted in a further reduction in our franking credits of $74 million. With the overall
movements in our franking account during the year, our franking account balance is $70 million. Our exempting account balance
for the year is $24 million, however there are statutory restrictions placed on the distribution of credits from this account.
Consequently, it is unlikely that we will be able to distribute our exempting credits.
Major subsidiaries - financial summaries
Below is a summary of the major reporting lines for our three largest subsidiaries: Sensis, CSL New World and TelstraClear. This
information is in addition to the product analysis previously provided in the document and is intended to show these businesses
as stand alone entities.
Sensis financial summary
We are a leading provider of advertising and search services through our advertising, directories and local search business Sensis.
Sensis provides innovative advertising and search solutions through print, online, voice, wireless and satellite navigation
networks. Sensis also manages the group’s advertising assets in China. The group has expanded its investments into China with
the acquisition in August 2006 of 55% (on an undiluted basis) of the issued capital of SouFun, a leading real estate, home furnishing
and home improvement website in China. More recently in June 2008 we acquired 55% of two Chinese internet businesses, Norstar
Media and Autohome/PCPop with leading positions in the fast-growing online auto and digital device advertising sectors.
Amounts included for Sensis represent the contribution included in Telstra’s consolidated result.
(i) The above results differ from those segment results reported on page 7 as for segment reporting purposes we monitor our results excluding the impact
of investment sales and impairment in value of investments. In the prior year, Sensis divested its investment in Platefood Limited and wrote off
intangibles relating to Trading Post~mastheads.
Sensis financial summary (i)
Year ended 30 June
2008 2007 Change Change
$m $m $m %
Total income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,127 1,974 153 7.8%
Total expenses (excluding depreciation and amortisation) . . . . . . . . . . . . . . . . . . . 1,033 1,031 2 0.2%
EBITDA. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,094 943 151 16.0%
Depreciation and amortisation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 150 130 20 15.4%
EBIT. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 944 813 131 16.1%
CAPEX . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 257 226 31 13.7%
EBITDA margin on sales revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51.4% 47.9% 3.5