Telstra 2011 Annual Report Download - page 49

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34
Telstra Corporation Limited and controlled entities
Full year results and operations review - June 2011
Capital expenditure
• Accrued capital expenditure declined marginally by 1.8% to $3,410 million which is within our market guidance
of around 14% capex to sales
• The decline was driven by a reduction in the business improvement program following the completion of key
customer focussed initiatives
Our operating capital expenditure declined by 1.8% to
$3,410 million in fiscal 2011 mainly due to the following
categories:
• business improvement spend decreased by $146
million due to the completion of key customer
focussed initiatives including customer care, billing
enhancements and systems integration;
• customer demand in fiscal 2011 was relatively
consistent with previous year spend levels with
continued focus on capacity and infrastructure to
support mobiles coverage and broadband growth;
• new revenue / growth spend to support new growth
businesses has been maintained and includes spend
on platform development for emerging products such
as digital business initiatives and media applications
and experience;
• the international program spend remained consistent
with continued demand for international transmission
capacity and offshore related investment in
TelstraClear and CSL New World.
Partly offsetting the above are increases in the following
categories:
• lifecycle maintenance expenditure increased by $74
million due to costs to support the remediation work
resulting from natural disasters that occurred during
the second half, increased mobiles site activity and on
IP platform upgrade; and
• Sensis increased by $40 million due to the
commencement of numerous new product
development projects in fiscal 2011 designed to
support product and activity measurement and to
enhance the customer experience with expanded
product offerings.
Operating capex by investment driver on an accruals basis Year ended 30 June
2011 2010 Change Change
$m $m $m %
New revenue/growth . . . . . . . . . . . . . . . . . . . . . . . . . . . 318 326 (8) (2.5)
Business improvement . . . . . . . . . . . . . . . . . . . . . . . . . . 574 720 (146) (20.3)
Customer demand and experience . . . . . . . . . . . . . . . . . . . . . 1,555 1,573 (18) (1.1)
Lifecycle maintenance . . . . . . . . . . . . . . . . . . . . . . . . . . 545 471 74 15.7
Legal and regulatory compliance. . . . . . . . . . . . . . . . . . . . . . 67(1)(14.3)
Sensis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 134 94 40 42.6
International . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 279 280 (1) (0.4)
Operating capital expenditure . . . . . . . . . . . . . . . . . . . . . 3,410 3,471 (61) (1.8)