Telstra 2011 Annual Report Download - page 22

7
Telstra Corporation Limited and controlled entities
Full year results and operations review - June 2011
Segment information and product profitability
(i) Internally, we monitor our segment performance excluding the impact of irregular revenue and expense items such as sales of major businesses and
investments, sales of land and buildings, impairment write-offs and FOXTEL distributions.
(ii) Other items excluded from the segment results for the year ended 30 June 2011 include the EBIT contribution from our Reach related operations and the
adjustment to the shareholder loan associated with the restructure of Reach assets.
We report our segment information on the same basis
as our internal management reporting structure at
reporting date, which drives how our company is
organised and managed.
The measurement of segment results is in line with the
basis of information presented to management for
internal management reporting purposes. The
performance of each segment is measured based on
their "underlying EBIT contribution" to the Telstra
Group. EBIT contribution excludes the effects of all
inter-segment balances and transactions. In addition,
certain items are recorded within our corporate areas,
rather than being allocated to each segment. Of
particular note is that Telstra Operations includes the
costs associated with the operation of the majority of
our networks as well as IT costs associated with the
supply and delivery of solutions to support our range of
products and services. Depreciation and amortisation
costs associated with the fixed assets of the parent
entity are recorded centrally in the corporate centre
(included in "Other").
Segment comparatives are restated to reflect any
organisational changes which have occurred since the
prior reporting period.
Further details about the performance of our business
segments follows:
Telstra Consumer and Country Wide
Our Telstra Consumer and Country Wide (TCCW)
segment has been the focus of our strategic investment
to retain and grow customer numbers. As a result of
this investment we have seen strong growth in our
customer base across the mobile, fixed broadband and
pay TV portfolios while the rate of PSTN customer loss
has slowed significantly. With the improved sales
momentum, our consumer segment has seen a return
to top line growth with income increasing by 3.6% to
$10,015 million.
Total external income EBIT contribution
Year ended 30 June Year ended 30 June
2011 2010 Change 2011 2010 Change
$m $m %$m $m %
Telstra Consumer and Country Wide . . . . . . . 10,015 9,667 3.6 5,295 5,584 (5.2)
Telstra Business . . . . . . . . . . . . . . . . 4,508 4,430 1.8 3,221 3,220 0.0
Telstra Enterprise and Government . . . . . . . 4,239 4,170 1.7 3,266 3,252 0.4
Telstra Wholesale . . . . . . . . . . . . . . . . 2,194 2,280 (3.8) 2,037 2,110 (3.5)
Telstra Operations . . . . . . . . . . . . . . . 128 80 60.0 (3,753) (3,820) (1.8)
Sensis . . . . . . . . . . . . . . . . . . . . . 1,787 1,909 (6.4) 871 1,021 (14.7)
Telstra International . . . . . . . . . . . . . . 1,289 1,381 (6.7) 102 191 (46.6)
TelstraClear . . . . . . . . . . . . . . . . . . 514 529 (2.8) (28) (14) 100.0
Other . . . . . . . . . . . . . . . . . . . . . 411 523 (21.4) (5,481) (4,936) 11.0
Total Telstra segments (i) . . . . . . . . . . 25,085 24,969 0.5 5,530 6,608 (16.3)
Other items excluded from segment results (ii) . . 219 60 n/m 162 (107) n/m
Total Telstra Group (reported) . . . . . . . . 25,304 25,029 1.1 5,692 6,501 (12.4)
Revenue by business segment Year ended 30 June
2011 2010 Change Change
$m $m $m %
Telstra Consumer and Country Wide
PSTN products . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,060 3,341 (281) (8.4)
Fixed internet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,208 1,211 (3) (0.2)
Mobile services revenue. . . . . . . . . . . . . . . . . . . . . . . . . . 3,780 3,558 222 6.2
Telstra Business
PSTN products . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,296 1,407 (111) (7.9)
Fixed internet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 344 347 (3) (0.9)
Mobile services revenue. . . . . . . . . . . . . . . . . . . . . . . . . . 2,011 1,867 144 7.7
Telstra Enterprise and Government
Mobile services revenue. . . . . . . . . . . . . . . . . . . . . . . . . . 959 858 101 11.8
IP and data access . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,103 1,099 4 0.4
Network applications and services . . . . . . . . . . . . . . . . . . . . . 917 900 17 1.9