Telstra 2016 Annual Report Download - page 24

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22
Segment information from continuing operations
Total external
income
FY16 FY15 Change
$m $m %
Telstra Retail 16,656 16,911 (1.5)
Global Enterprise
and Services 6,262 5,618 11.5
Telstra Wholesale 2,622 2,586 1.4
Telstra Operations 602 424 42.0
All Other 908 573 58.5
Total Telstra
segments 27,050 26,112 3.6
Telstra Retail
All Other
Telstra Operations
Telstra Wholesale
Global Enterprise and Services
62%
23%
10%
2%
3%
Segment performance
We present our reportable segments and measure our segment results on the same
basis as our internal management reporting structure. Our reportable segments
represent the respective business units which offer our main products and services
in the market. Further information on each reportable segment can be found in
Note 2.1 of the Annual Report.
Telstra Retail
Telstra Retail income declined by 1.5
per cent to $16,656 million while EBITDA
declined by 3.9 per cent to $9,220 million.
The decline in EBITDA is largely a result
of the decline in xed voice margins
and the impact of the migration to the
nbn™ network. Telstra Retail comprises our
Consumer and Business business units.
Income in our Consumer business unit
declined by 1.2 per cent. Excluding the
impact of the Mobile Termination Access
Service (MTAS) decision, on a like-for-like
basis, income grew by 1.0 per cent.
The MTAS decision relates to regulatory
changes to voice and SMS terminating
rates which became effective from
1 January 2016. While there was
subscriber growth in mobiles and xed
data, lower average revenue per user
(ARPU) impacted overall revenue growth.
An increase in the take up of bundles and
nbn™ plans saw xed data revenue grow
by 6.2 per cent. The rate of consumer
xed voice revenue decline was broadly
stable at 7.7 per cent. During the year we
adjusted mobile data and international
roaming rates which impacted revenues
in the mobile business. ARPU (excluding
the impact of mobile repayment options)
decreased as a result, however minimum
monthly commitment grew over the period
for post-paid handheld.
Pre-paid also experienced lower ARPU’s
however there was growth in unique users
of 2.3 per cent.
In Telstra Business, income declined by
2.4 per cent with mobile services revenue
falling by 5.8 per cent as a result of lower
excess data and international roaming.
On a like-for-like basis, income declined
by 1.0 per cent, excluding the MTAS
impact. The Network Applications
and Services (NAS) portfolio in Telstra
Business, in particular managed
network services, cloud and unied
communications, continued to see good
momentum, increasing by 18.3 per cent.
Global Enterprise and Services (GES)
Income for GES increased by 11.5 per
cent to $6,262 million. GES International
income grew by 55.5 per cent with
contributions resulting from our Pacnet
acquisition last nancial year. Excluding
Pacnet, GES International income
increased by 18.2 per cent. GES Domestic
income increased by 1.1 per cent due
to strong growth in NAS and enterprise
mobility, in particular in post-paid and
machine to machine (M2M). This growth
was partially offset by a revenue decline in
Data and IP products. Other acquisitions
including Bridge Point and O2 also
continue to contribute to growth. GES
EBITDA was stable at $2,456 million.
Telstra Wholesale
Telstra Wholesale income grew by 1.4
per cent to $2,622 million. This was largely
a result of an increase in Infrastructure
Services Agreement ownership receipts
which have increased in line with the
nbn™ rollout, offset by price reductions
from the ACCC’s xed line service Final
Access Determination (FAD) which
became effective on 1 November 2015.
EBITDA contribution increased by 1.4 per
cent to $2,426 million.
Telstra Operations
Telstra Operations is primarily a service
delivery centre supporting the revenue
generating activities of other segments.
It also has nbn™ and property sale
revenue. The EBITDA contribution
improved by 3.0 per cent with increases
in nbn™ and property sale revenue,
partially offset by higher maintenance
costs to support nbn™ related works.
All Other
Certain items of income and expense
relating to multiple reportable segments
are recorded by our corporate areas
and included in the All Other category.
This category also includes Telstra
Innovation and Strategy (including the
Telstra Software Group), International
and New Business (including the Telstra
Ventures Group and Telstra Health®) and
Media & Marketing.