Telstra 2010 Annual Report Download - page 40

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Telstra Corporation Limited and controlled entities
Full year results and operations review - June 2010
2009 and the first three quarters of fiscal 2010.
Franking credits of $1,492 million were used when we
paid our final 2009 dividend and 2010 interim dividend.
In addition, the 2009 income tax return refund and prior
years’ tax amendment refunds have resulted in a
further reduction of $333 million in our franking credits.
Following the above movements, our franking account
balance was $138 million in deficit as at the end of fiscal
2010. Our exempting account balance 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. We believe that our current balance
in the franking account, combined with the franking
credits that will arise on tax instalments expected to be
paid, will be sufficient to fully frank our final 2010
dividend.
Major subsidiaries - financial summaries
Below is a financial summary of our three largest
subsidiaries: Sensis, CSL New World and TelstraClear.
This information is complementary to the product
analysis previously provided in the document and is
intended to show these businesses as stand alone
entities.
Sensis financial summary
Amounts included for Sensis represent the contribution to Telstra’s consolidated result.
Sensis total income is split into the following categories:
Note: The income breakdown shown here has been updated since December 2009 reporting to reflect the view used to manage the business.
(i) The Chinese online businesses results are unaudited management accounts converted from local currency into Australian Dollars.
(ii) June 2009 figures have been restated to include the results of the Octave business which was transferred from our Chief Marketing Officer segment in
January 2010. This business was originally acquired in February 2009.
Sensis is our advertising subsidiary. Sensis helps you
find, buy and sell through service offerings including
Yellow Pages®, White Pages®, 1234, Citysearch®,
Whereis® and our MediaSmart digital display
advertising business. Sensis also manages the group's
advertising assets in China through interests in SouFun,
Sequel, Octave and Lmobile.
Reported sales revenue at Sensis declined by 2.1%
since the prior year however profitability of the business
improved with reported EBITDA up 2.3% and EBITDA
margins increasing by 2 percentage points to 54.0%.
Performance also improved in the domestic business
during the second half of the year.
There were a number of changes to the Sensis group
that impacted the above growth rates during both fiscal
Year ended 30 June
2010 2009 Change Change
$m $m $m %
Total income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,253 2,301 (48) (2.1%)
Operating expenses (excl. depreciation and amortisation) . . . . . . . . . . 1,031 1,106 (75) (6.8%)
EBITDA contribution . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,222 1,195 27 2.3%
Depreciation and amortisation . . . . . . . . . . . . . . . . . . . . . . . 118 128 (10) (7.8%)
EBIT contribution . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,104 1,067 37 3.5%
Capital expenditure . . . . . . . . . . . . . . . . . . . . . . . . . . . . 102 219 (117) (53.4%)
EBITDA margin on sales revenue . . . . . . . . . . . . . . . . . . . . . 54.0% 52.0% 2.0
Year ended 30 June
2010 2009 Change Change
$m $m $m %
- Yellow Pages® revenue . . . . . . . . . . . . . . . . . . . . . . . . . 1,265 1,318 (53) (4.0%)
- White Pages® revenue . . . . . . . . . . . . . . . . . . . . . . . . . 415 412 3 0.7%
- Classifieds revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . -68 (68) (100.0%)
- Digital marketing services . . . . . . . . . . . . . . . . . . . . . . . . 74 99 (25) (25.3%)
- Voice revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 139 143 (4) (2.8%)
- Chinese online businesses (i) . . . . . . . . . . . . . . . . . . . . . . 234 201 33 16.4%
Total Sensis advertising and directories . . . . . . . . . . . . . . . . . . 2,127 2,241 (114) (5.1%)
Chinese content (ii). . . . . . . . . . . . . . . . . . . . . . . . . . . . 118 50 68 136.0%
Other sales revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 9777.8%
Total Sensis sales revenue . . . . . . . . . . . . . . . . . . . . . . . . 2,261 2,300 (39) (1.7%)
Other income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (8) 1(9)(900.0%)
Sensis total income. . . . . . . . . . . . . . . . . . . . . . . . . . . 2,253 2,301 (48) (2.1%)