Telstra 2016 Annual Report Download - page 85

83
Section Title | Telstra Annual Report 2016
Telstra Corporation Limited and controlled entities | 83
Notes to the financial statements (continued)
Section 2. Our performance
This section explains our results and performance and
includes our segment results, which are reported on the
same basis as our internal management structure, and our
earnings per share for the period. It also provides details of
selected income and expense items, information about
taxation and a reconciliation of our profit to net cash
generated from operating activities.
SECTION 2. OUR PERFORMANCE
2.1 Segment information
2.1.1 Operating segments
Our operating segments are reported on a continuing operations
basis. This means they exclude results of discontinued operations of
the Autohome Group and Sensis Group, which represent a
reconciling item between our segment results and the Telstra
Group’s reported EBITDA. Refer to note 6.4 for further details
regarding discontinued operations.
During the period, the following operating segments were created:
• International & New Business, which includes Telstra
International Group (excluding the Autohome Group results
disclosed as discontinued operations) and Telstra Ventures Group
(both previously included in ‘All Other’ category) and Telstra Health
(previously part of Telstra Retail segment)
• Media & Marketing (previously part of Telstra Retail segment),
which includes advertising revenue and cash distributions from
our joint venture Foxtel. Pay TV/IPTV and digital content revenues
and associated costs continue to be reported in Telstra Retail
segment.
• Technology Innovation & Strategy, which includes Telstra
Software Group (previously part of Global Enterprise and Services
segment), Chief Technology Office (previously part of Telstra
Operations segment) and Corporate Strategy (previously included
in ‘All Other’ category).
The above operating segments do not meet the disclosure
requirements for a reportable segment and therefore, they are
reported in the ‘All Other’ category together with business units that
do not qualify as operating segments in their own right.
Segment comparatives have been restated to present a like-for-like
view.
We have four reportable segments as follows:
Segment information is based on the information that
management uses to make decisions about operating matters
and allows users to review operations through the eyes of
management. We present our reportable segments and
measure our segment results on continuing operations basis,
i.e. the same basis as our internal management reporting
structure.
Our operating segments represent the business units which
offer our main products and services in the market, however
only some of our operating segments meet the disclosure
criteria for reportable segments.
Segment Operation
Telstra Retail (TR) • provider of telecommunication products, services and solutions across mobiles, fixed and mobile
broadband, telephony and Pay TV/IPTV and digital content to consumer and small to medium business
customers in Australia
• the operation of inbound and outbound call centres, Telstra shops (owned and licensed) and the
Telstra dealership network
• online self-service capabilities for customers, from browsing to buying, billing and service requests
Global Enterprise and
Services (GES)
• sales and contract management for large business and government customers in Australia and
globally
• management of Telstra's networks outside Australia
• product management for advanced technology solutions and services, including Data and Internet
Protocol (IP) networks and Network Applications and Services (NAS) products such as managed
network, unified communications, cloud, industry solutions and integrated services in Australia and
globally
• development of industry vertical solutions based on Telstra's networks and technology
Telstra Operations
(TOps)
• overall planning, design, engineering and architecture and construction of Telstra networks,
technology and information technology solution
• service delivery centre supporting the revenue-generating activities of TR, GES and TW segments,
including operational and risk management services
• provider of certain network services to nbn co under the revised NBN Definitive Agreements and
commercial contracts
• provider of various telecommunication services to meet Telstra Universal Service Obligation
Performance Agreement (TUSOPA)