Telstra 2009 Annual Report Download - page 44

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29
Telstra Corporation Limited and controlled entities
Full year results and operations review - June 2009
TelstraClear financial summary
Amounts presented in NZ$ represent the New Zealand business excluding intercompany transactions and have been prepared in accordance with A-IFRS. Amounts
presented in A$ represent amounts included in Telstra’s consolidated result and include the Australian dollar value of adjustments to consolidate TelstraClear into the
Group result.
For the year ended 30 June 2009, revenue in New Zealand
(excluding rising trans Tasman intercompany revenue) has
increased by 2.3% in local currency despite a challenging
economic environment.
The tightening in the business markets has been offset by
consumer services with overall consumer revenue (including
both on-net and off-net services) rising by 18.7% for the year.
Broadband penetration on the consumer hybrid fibre coaxial
(HFC) cable network in Wellington and Christchurch continues
to grow with 70% of the customer base now enabled, while
consumer PSTN access lines rose by 24.3% for the year.
Operating expenses (excluding depreciation and amortisation)
increased by 1.5% as a result of higher bad and doubtful debts
associated with the current challenging economic times and
an increase in promotion and advertising. Partially offsetting
these increases in expenses were lower IT and discretionary
expenses.
The year-on-year change in the NZ$ versus AUD$ exchange
rate resulted in a decrease in consolidated total income of A$28
million which was offset by a decrease in expenses (including
depreciation and amortisation) of A$29 million.
Capex investment has reduced by 15.0% for the year driven by
a more focused investment strategy targeted at delivering core
capability such as the billing upgrade. Capex reduced despite
the implementation of access via unbundled local loop in
which TelstraClear will be the country’s biggest participant.
Year ended 30 June Year ended 30 June
2009 2008 Change 2009 2008 Change
A$m A$m %NZ$m NZ$m %
Total income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 547 562 (2.7%) 671 656 2.3%
Operating expenses (excl. depreciation & amortisation) . . . 439 455 (3.5%) 539 531 1.5%
EBITDA contribution . . . . . . . . . . . . . . . . . . . . . . . . . 108 107 0.9% 132 125 5.6%
Depreciation and amortisation. . . . . . . . . . . . . . . . . . . 121 127 (4.7%) 141 141 -
EBIT contribution . . . . . . . . . . . . . . . . . . . . . . . . . . . (13) (20) 35.0% (9) (16) 43.8%
Capital expenditure . . . . . . . . . . . . . . . . . . . . . . . . . . 77 96 (19.8%) 96 113 (15.0%)
EBITDA margin on sales revenue . . . . . . . . . . . . . . . . . . 19.7% 19.0% 0.7 19.7% 19.1% 0.6