Telstra 2010 Annual Report Download - page 33

18
Telstra Corporation Limited and controlled entities
Full year results and operations review - June 2010
Business services and applications
The decline in business services and applications
revenue was due to the sale of the KAZ business in April
2009 and the consequent absence of this revenue.
Excluding KAZ from the prior year, revenue grew by
5.3% or $47 million partly driven by strong growth in
managed network services revenue due to an increase
in the value of managed WAN equipment being financed
and the roll out of communications infrastructure with
several key customers.
There has also been continued strong revenue growth in
relocation and infrastructure works associated with
major projects.
Partly offsetting the above growth has been a decline in
IT services revenue due to the exit of a major desktop
contract and a reduction in revenue in the managed
voice portfolio.
Advertising and directories
Our advertising and directories revenue is
predominantly derived from our wholly owned company
Sensis (Australia’s leading information resource) and its
controlled entities. For a detailed description of the
performance of Sensis please refer to the financial
summary on page 25.
Other advertising revenue represents revenue from our
Trading Post business which was transferred from
Sensis on 1 April 2009. Trading Post® is now
exclusively an online and mobile classifieds service as
the final print editions were published on 29 October
2009. Taking into account revenue recorded in Sensis
in the prior year, Trading Post revenue has declined by
$48 million to $38 million in the current year.
Offshore controlled entities
For further details regarding the performance of CSL
New World (CSLNW) and TelstraClear, please refer to
their respective business summaries commencing on
page 26.
Revenue from offshore controlled entities declined by
$334 million in the year with foreign currency
movements causing $222 million of the overall decline.
The decline in other offshore controlled entities revenue
of $97 million includes $58 million attributable to
foreign currency translation. Excluding this impact,
Europe has recorded a $38 million reduction due mainly
to unfavourable churn in data and voice products with
some customers reducing or cancelling their services
a f t e r b e i n g i m p a c t e d b y t h e g l o b a l e c o n o m i c c o n d i t i o n s .
Year ended 30 June
2010 2009 Change Change
$m $m $m %
Business services and applications revenue. . . . . . . . . . . . . . . . . 936 1,115 (179) (16.1%)
Year ended 30 June
2010 2009 Change Change
$m $m $m %
Sensis advertising and directories revenue . . . . . . . . . . . . . . . . . 2,127 2,241 (114) (5.1%)
Other advertising revenue. . . . . . . . . . . . . . . . . . . . . . . . . 38 18 20 111.1%
Total advertising and directories revenue . . . . . . . . . . . . . . . 2,165 2,259 (94) (4.2%)
Year ended 30 June
2010 2009 Change Change
$m $m $m %
CSL New World . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 770 989 (219) (22.1%)
TelstraClear . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 529 547 (18) (3.3%)
Other offshore controlled entities revenue . . . . . . . . . . . . . . . . . 293 390 (97) (24.9%)
Total offshore controlled entities revenue . . . . . . . . . . . . . . . 1,592 1,926 (334) (17.3%)