SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
REPORT OF FOREIGN ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 OF
THE SECURITIES EXCHANGE ACT OF 1934
Date: For the period ending 20 April 2005
TELSTRA CORPORATION LIMITED
ACN 051 775 556
242 Exhibition Street
Melbourne Victoria 3000
Australia
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.
Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934
If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b):
| | | |
| Media Release | |  |
Telstra updates shareholders on future changes to accounts
Telstra today undertook a shareholder education initiative to raise awareness of future changes and impacts on Telstra’s financial statements as a result of the move to the Australian equivalents of International Financial Reporting Standards (A-IFRS) from 01 July 2005.
Speaking at a financial market and media briefing Telstra Chief Financial Officer, Mr John Stanhope, said the briefing would reduce confusion by clearly distinguishing between A-IFRS-related changes in reported financial results and those that arise from changes in the underlying business.
“A-IFRS will not significantly affect net cash flow, our ability to borrow funds, or our dividends capacity. There will be no change to our previous commitments and no change to returns to shareholders,” Mr Stanhope said.
“While earnings may be more volatile through the application of the new standards, net cash flow would be unaffected.”
In February 2003 Telstra established a project team led by Telstra’s Director, Business and Finance Services, Mr Geoff Nicholson, to manage the convergence to A-IFRS and Telstra’s first set of A-IFRS financial statements for the half year ended 31 December 2005.
Mr Stanhope said the project schedule was on track and had identified significant changes in policy across: share-based payment (AASB 2); business combinations (AASB 3); income taxes (AASB 112); employee benefits (AASB 119); borrowing costs (AASB 123); impairment of assets (AASB 136); and, financial instruments (AASB 132 and 139).
As part of the move to raise awareness of A-IFRS Telstra had included the known estimable transition impacts of adopting A-IFRS in Note 1 to the 31 December 2004 half-year financial statements. This note discussed in detail each adjustment that is likely to be made and whether it was a mandatory adjustment, or an election made under the standards. The Company has estimated a net reduction to retained earnings of $907 million if the transition date is 1 July 2003 or $852 million if the date is 1 July 2004.
This net reduction to retained earnings is to adjust the financial statements to reflect the position had Telstra always been applying A-IFRS. Telstra provided the impact at both dates to comply with US Securities and Exchange Commission requirements to provide two years of comparative information. The SEC has proposed relief from this requirement for foreign registered companies, however a final ruling has yet to be released.
Telstra Corporation Limited
ABN 33 051 775 556
- 2-
There are also some technical aspects of the income taxes standard that are the subject of further clarification as to how they will apply to Telstra. These matters have been referred to the Australian Accounting Standards Board (AASB) and the International Interpretations body for consideration. Finalisation of these matters could give rise to further transitional adjustments.
To provide an indication of the ongoing impact of A-IFRS on Telstra’s results, the 31 December 2004 half-year Income Statement has been restated to take account of the known A-IFRS changes. At this stage the main effects on the 31 December 2004 half year Income Statement is to increase net profit attributable to shareholders by $54 million.
This excludes any potential impact of the financial instruments standard, which will be applied from 1 July 2005. The main contributors to the increase in net profit under A-IFRS were:
| | § | Lower EBITDA attributable to an increase in total expenses due mainly to additional labour expense from the recognition of Telstra’s defined benefit schemes, partially offset by the benefit arising from the change in treatment for share-based payments; |
| |
| | § | Lower depreciation expense due to Telstra’s election to cease capitalising interest on capital projects. Amortisation is also reduced due to the cessation of amortisation of goodwill under A-IFRS; |
| |
| | § | Higher EBIT due to the benefit arising from depreciation and amortisation, which exceeds the additional expenses referred to above; |
| |
| | § | Interest costs increase due to the cessation of capitalising interest; and |
| |
| | § | Income tax expense decreases mainly due to the change in income tax methodology to the balance sheet approach. In addition, the cessation of goodwill amortisation, which is not subject to tax, has a favourable impact on tax expense. |
These factors all contribute to an improvement in net profit after tax under A-IFRS for the half-year ended 31 December 2004.
The main impact of the new accounting standards on the Balance Sheet is a reduction in net assets mainly reflecting the transitional adjustments. The adjustments will be:
| | § | Reduction in property, plant and equipment balance due to Telstra electing to expense borrowing costs as incurred, rather than capitalising a portion to capital projects to be included in depreciation in future periods. Due to this election, it is necessary to reverse previously capitalised borrowing costs still to be amortised on adoption of A-IFRS; |
| |
| | § | An additional asset is to be recognised for the net asset position of the defined benefit schemes; |
| |
| | § | Reinstatement of equity accounting against the capacity prepayment asset, which is deemed to be an extension of an investment under A-IFRS. The increase in the deemed investment balance is, however, absorbed by the carried forward losses not previously recognised. This reduces the capacity prepayment balance to nil as part of the transition to A-IFRS; |
Telstra Corporation Limited
ABN 33 051 775 556
- 3 -
| | § | A reduction in goodwill to reflect the adoption of an option to reset overseas goodwill balances, related to foreign controlled entities, from being denominated in Australian dollars to the applicable foreign currency at the original date of acquisition; |
| |
| | § | Additional deferred tax liabilities due to the tax effect of other A-IFRS standards, and the change in method of accounting for income taxes from an income statement approach to a balance sheet approach, resulting in items not previously required to be recognised now being booked; and |
| |
| | § | Reduction in receivables and share capital for the consolidation of the employee share plan trusts and the treatment of employee share loans as options. Companies that have established employee benefit trusts must determine whether they control these entities. Under Australian Generally Accepted Accounting Principles (AGAAP) Telstra does not have control, however under A-IFRS it is considered to have control and hence must consolidate these entities. |
On the Statement of Cash Flows there is a minor impact as most of the changes brought about by the move to A-IFRS do not have any cash implications. Free cash flows increase mainly due to borrowing costs being reclassified from operating to financing activities, and bills of exchange being reclassified from financing to investing activities.
The information contained above should be considered as preliminary and remains subject to change. This information has been calculated based on A-IFRS standards and currently available interpretations as at 1 March 2005. Telstra’s external auditors have reviewed the transitional adjustments included in the half-year financial report. The restated information for the six months to 31 December 2004 is unaudited.
Telstra Media Contact
Kerrina Lawrence
Telephone:03 9634 5611
Mobile:0419 352 313
(The slide pack that accompanied the media/analyst briefing can be located athttp://www.telstra.com.au/communications/calendar/calendarevent.cfm?ObjectID=821
Telstra’s national media inquiry line is 131639 and the Telstra Corporate Communications Centre is located at:www.telstra.com.au/communications/media/index
Telstra Corporation Limited
ABN 33 051 775 556
| Telstra Corporation Limited |
| ___The figures presented today are our current best estimate of the consequences for Telstra of adopting A-IFRS – accordingly, they remain subject to change |
| ___All amounts are preliminary and unaudited, but reflect the work-in-progress of our IFRS project team, and are based on A-IFRS standards and interpretation as at 1 March 2005 |
| ___All forward looking statements represent our best estimate to date and should not be relied upon as a final or exhaustive statement of all possible effects of A-IFRS when ultimately adopted in FY06 |
| ___Forward looking statements are inherently uncertain as they are based upon current assumptions, expectations, understandings, analysis and forecasts that may not turn out to be correct |
| · The forward looking statements contained in this document speak only as of the date of this presentation. Telstra does not undertake to update any forward looking statements to reflect events or circumstances after the date hereof, or to reflect the occurrence of unanticipated events. |
| ___Our estimates do not include the effect or likely effect of future transactions or new ventures/acquisitions on financial statements — they are based on events up to 30 November 2004. |
| ___The company, through Investor Relations, will be happy to discuss with you the information included in this presentation, however we will not be able to provide any |
| further estimates of the future impact of adopting A-IFRS at this time |
| ___The transition date cannot be finalised until the final SEC ruling is released |
Agenda ___Key messages ___A-IFRS implementation timeline ___Financial impacts and significant changes in policy ___Sensitivities ___Summary ___Questions Page 3
| A-IFRS at Telstra – key messages |
| ___No impact on Telstra’s strategy and business performance: |
| ___Management decisions are not affected by A-IFRS |
| ___Telstra’s operations are not impacted |
| ___Under A-IFRS there is likely to be increased volatility in earnings |
| ___A-IFRS will not significantly affect net cash flow, ability to borrow funds, or dividends capacity |
| ___No change to commitments ___No change to returns to shareholders |
| Focus on free cash flows and shareholder returns is not compromised |
| A-IFRS implementation timeline |
| ___Formal IFRS project team to manage convergence to A-IFRS |
| ___Our first set of A-IFRS financial statements will be for the half-year ended 31 December 2005, and for the financial year ended 30 June 2006 |
| A-IFRS – Half A-IFRS – Full Telstra to start year year recording A-IFRS Offline model developed, and Final reporting to reporting to transactions narrative assessment of key Transitional transitional include 1 year include 1 or 2 offline (if SEC impacts and project status impacts impacts of years of relief is not used) disclosed reported reported comparatives comparatives |
| Jul 1 July 31 Dec 30 June 31 Dec 30 June 31 Dec 30 June 02 |
| Project on schedule to meet implementation milestones |
| ___A-IFRS is not optional, has the force of law, and Telstra is required to apply it from 1 July 2005 |
| ___There are two components to the move: |
| ___Transitional adjustment |
| ___The effect of adjusting the existing AGAAP numbers to reflect the position as if A-IFRS had always been applied |
| ___Comprised of both mandatory adjustments and optional elections |
| ___Ongoing impact – the effect on operating profit each period from applying the new rules |
| A-IFRS must be applied by Telstra from 1 July 2005 |
| Key transition impacts ___Known estimable impacts reported in 31 December 2004 half-year financial statements ___No change to these estimated impacts to dateTransition date 1 July 2003 1 July 2004 $ million $ million (unaudited) (unaudited) AGAAP total equity 15,422 15,361 Total reduction in equity (907) (852) A-IFRS total equity 14,515 14,509 Major components — increase/(decrease) in equity: Consolidation of TESOP and Growthshare Trusts (319) (291) Share based remuneration 34 55 Carrying value differences from the tax base (193) (184) Defined benefit pension assets 186 400 Retranslation of the overseas goodwill balances * (285) (302) Expensing of borrowing costs previously capitalised * (331) (322) Equity accounting of capacity prepayment for Reach Ltd 1 (208) * Optional adjustments under A-IFRS Transition date to be determined based on SEC ruling Page 7 |
| Ongoing impact — financial highlightsSix months to 31 December 2004 Increase/(decrease) AGAAP A-IFRS 31 December 2004 $ million $ million $ million (unaudited) (unaudited) (unaudited) Income statement Sales Revenue 11,275 11,275 - Total income 11,382 11,360 (22) Total expenses 5,845 5,871 26 EBITDA 5,537 5,489 (48) Depreciation and amortisation 1,850 1,733 (117) EBIT 3,687 3,756 69 Net finance costs 371 424 53 NPAT 2,337 2,391 54 Earnings per share Basic 18.6 19.1 0.5 Diluted 18.6 19.0 0.4 Dividend payout ratio 74.5% 72.9% -1.6% Net assets 15,254 14,508 (746) Net debt 11,972 11,967 (5) Net cash flow 420 422 2 Free cash flow 1,609 1,976 367 The impact of AASB 132/139 Financial Instruments has been excluded from this analysis due to the relevant transition date being 1 July 2005. Each of the above items is addressed in more detail in the following pages and the Appendix. Earnings may be more volatile, but net cash flow not affected Page 8 |
| Significant changes in policy ___Telstra’s high impact areas on convergence: ___Share-based payment ___Business combinations ___Income taxes ___Employee benefits ___Borrowing costs ___Impairment of assets ___Financial instruments Page 9 |
| AASB 2 “Share-Based Payment” ___Cease recording an expense when funding provided to the trust to purchase Telstra shares that underpin certain equity instruments issued ___Recognise expense for all share-based remuneration, determined with reference to the fair value of the equity |
| instruments issued after 7 November 2002 ___Charged to the income statement over the relevant vesting periods, and is adjusted to reflect the expected level of vesting. Under existing requirements, the entire expense is recognised immediately for each issue31/12/2004 P&L restatement $m (unaudited) Benefit of recognising expense over vesting period 13 Consolidation of Growthshare Trust (1) Profit improvement after tax 12 Page 10 |
| AASB 3 “Business Combinations” |
| ___Elimination of goodwill amortisation will reduce expenses and increase earnings |
| ___Impairment testing on goodwill to be performed at each reporting date. |
| Recognise impairment charge immediately in income statement if it occurs |
| ___Deferred tax balances are to be recognised as part of acquisitions, which will result in higher goodwill balances |
| 31/12/2004 P&L restatement |
| Benefit of ceasing amortisation — controlled entities 72 Benefit of ceasing amortisation — joint ventures and associates 1 Profit improvement after tax 73 |
| ___Income tax on the profit for the year comprises current and deferred taxes. |
| ___Tax expense is generally recognised in the income statement, except: |
| ___items recognised directly in equity, tax is in equity ___business combinations, tax is in goodwill |
| ___Generally recognise deferred tax balances when there is a difference between the carrying value of an asset or liability and its tax base. This means that tax expense will be different under A-IFRS. |
| ___The test for the recognition of tax losses has changed from virtual certainty to a test of probability31/12/2004 |
| P&L restatement $m (unaudited) |
| Income tax benefit 13 Profit improvement after tax 13 |
| AASB 119 “Employee Benefits” |
| ___An expense will be recognised when the service cost exceeds expected asset return |
| ___The service components of the superannuation costs will be an additional expense recognised in the income statement. This expense will occur irrespective of whether cash contributions are being made to the fund |
| ___There are options for recognising actuarial gains/losses — we have elected to recognise actuarial gains/losses directly in retained profits. This will result in future volatility in equity |
| ___A portion of the defined benefit scheme expense will be recognised in PP&E balances |
| 2/2004 P&L restatement $m (unaudited) |
| Labour (expense) (incl. the effects of contribution taxes) (86) Income tax benefit 24 Profit reduction after tax (62) |
| Retained earnings (actuarial gains, incl. the effects of contribution taxes) 90 Income tax movement in retained earnings (debit)/credit (23) |
| Net increase in retained earnings 67 Page 13 |
| AASB 123 “Borrowing Costs” ___Borrowing costs will be included in interest expense as incurred, rather than capitalised and included in depreciation in future periods. This results in a timing difference in recognition in the income statement31/12/2004 P&L restatement $m (unaudited) Benefit of ceasing depreciation 45 Borrowing (cost) (48) Income tax benefit 1 Profit reduction after tax (2) Page 14 |
| AASB 136 “Impairment of Assets” |
| ___Property, plant and equipment, goodwill, intangibles etc will be reviewed at each reporting date to determine whether there are indications of impairment. If indications exist, the asset is tested for impairment by comparing recoverable amount to its carrying value |
| ___Telstra’s Australian telecommunications operations will continue to be assessed as a single cash generating unit (“CGU”) |
| ___Each controlled entity, joint venture and associate has been assessed, and generally each entity will have at least one separate CGU |
| ___Telstra has previously chosen to assess the recoverable amount on a discounted basis, and this approach is required by the new standard |
| ___Potential for increased volatility in earnings through the income statement if the impairment test is not met in the future |
| AASB 132 and AASB 139 Financial Instruments -Recognition and Disclosure |
| ___Application of AASB 132/139 is required to be applied prospectively from 1 July 2005, and comparative information does not need to be restated |
| ___No change to Telstra’s business and risk management objectives and policies |
| ___The mixed measurement model (some items at fair value, others at cost or amortised cost) and the hedge accounting requirements makes AASB 139 a complicated standard to apply |
| ___The major impact to Telstra of adopting AASB 139 relates to hedging activities |
| ___Entering into derivatives contracts to manage interest rate and foreign currency risk introduces profit volatility |
| ___There is an accounting impact on Telstra’s profit and net asset position from the re-measurement of financial assets and financial liabilities and the application of hedge accounting |
| AASB 132 and AASB 139 Financial Instruments – Areas that will Create Volatility Changes in the measurement basis of the following financial instruments will create volatility in profit and/or equity:Available-for-sale Measurement Impact Key Variables that financial assets basis- Equity (if impaired profitaffect value - - eg listed securities — fair value impact) — changes in quoted market priceDerivatives in hedge Measurement Impact Key Variables that relationship basis- Profit or equity depending onaffect value - - eg cross currency swaps, — fair value hedge relationship (cash flow, — changes in interest rates; interest rate swaps, forward FX fair value, net foreign — changes in foreign contracts investment) and whether exchange rates hedge criteria are satisfied.Hedged items in fair value Measurement Measurement basis Key Variables that hedge basis- profitaffect value - - foreign currency borrowings — fair value to the — changes in interest rates; extent of the risk being — changes in foreign hedged exchange rates Page 17 |
| AASB 132 and AASB 139 Financial Instruments -Hedging Overview |
| Fair value hedges Cash flow hedges Net investment in |
| foreign entities Used for: ___Foreign exchange ___In conjunction with fair ___Hedge against and interest rate risk value hedges exposure to foreign on foreign borrowings currency risk |
| ___Foreign exchange risk on foreign borrowings and purchases |
| Profit ___Revaluation to fair ___Hedge ineffectiveness ___Hedge value of foreign ineffectiveness |
| impact: ___Transfer made from |
| ___Movement in derivative |
| hedged item affects profit |
| in borrowing ___Hedge ineffectiveness Direct ___None ___Revaluation to fair value ___Gains/losses on of derivative to extent translation and equity derivative are effective impact: recognised in FCTR |
| Sensitivities – Potential Financial Instruments Ongoing Impact |
| ___The Financial Instruments Standards are applicable to Telstra from 1 July 2005. The potential impact on the income statement and balance sheet is |
| summarised below:What if analysis |
| Adverse proportional movement of 10% across risk Double margin categories [10% — all other decrease in FX; 10% variables increase in interest Actual constant rates] IMPACT ON PROFIT — ASSUMING 1/7/04 TRANSITION TO AASB 139$m $m $m Revaluation of borrowings and derivatives to fair value — net of tax 13 (20) 25 Excluded component of hedges of net investments in foreign entities - net of tax 5 5 5 |
| Total profit reduction/(improvement) 18 (15) 30 |
| IMPACT ON EQUITY — RESERVES — ASSUMING 1/7/04 TRANSITION TO AASB 139 Cash flow hedging instruments |
| - balance 1 July 2004 — net of tax (121) (121) (121) — net movement — net of tax (22) (2) 36 |
| - sub-total cash flow hedge reserve — net of tax (143) (123) (85) FCTR — Net investments in foreign entities- transfer from equity — excluded component — net of tax(5) (5) (5) Available-for-sale financial assets |
| - balance 1 July 2004 (39) (39) (39) — net movement — net of tax 1 1 1 |
| - sub-total available-for-sale — net of tax (38) (38) (38) Total equity — reserves — reduction/(improvement) — net of tax (186) (166) (128) |
| IMPACT ON NET DEBT — ADJUSTMENT TO AGAAP NET DEBT |
| Revaluation of derivatives and borrowings — net decrease in net debt 52 230 740 |
‘
| Sensitivities – Potential Impacts |
| ___An expense will be recognised under AASB 119 for defined benefit schemes irrespective of whether cash contributions are being made |
| ___Net pension cost for the six months to 31 December 2004 recognised in the A-IFRS income statement was $86 million |
| ___A 1% movement in the discount rate would have changed the half-year income statement by $21 million |
| ___A 1% movement in the return on assets would have changed the half-year income statement by $23 million |
| ___Effect of change in exchange rates on the foreign currency translation reserve due to reflecting goodwill and fair value adjustments in foreign currencies in accordance with AASB 121 |
| ___Impact on the balance sheet of a 10% increase in exchange rates is to decrease FCTR by $193 million |
| ___Impact on the balance sheet of a 10% decrease in exchange rates is to increase FCTR by $236 million |
| Overview of ongoing impact |
| ___Sales revenue – no change, underlying business not impacted |
| ___Operating expenses – additional labour expense due to the impact of defined benefit schemes, partially offset by the reclassification of the book value on non-current assets disposed to Other Income |
| ___EBITDA – lower due to additional labour expense |
| ___Depreciation – reduced charge due to reversal of previously capitalised interest |
| ___Amortisation — reduced charge due to cessation of amortisation of goodwill |
| ___EBIT – an improvement as the benefit arising from depreciation and amortisation exceeds the additional expenses |
| ___Interest — increased charge due to cessation of capitalising interest |
| ___After application of AASB 139 Financial Instruments — increased charge due to inclusion of hedging impacts |
| ___Income Tax – reduced due to increased expenses ___Net cash flows – minor change only |
| ___Free cash flows – increased mainly due to borrowing costs and bills of exchange being reclassified between operating, investing and financing activities |
| ___Net debt – minor change only |
| ___After application of AASB 139 Financial Instruments — revaluation due to inclusion of hedging impacts |
| Strategy and underlying business operations not impacted |
| Target financial parameters |
| Six months to 31 Increase/ December 2004 (decrease) AGAAP A-IFRS 31 Dec. 2004 Target (unaudited) (unaudited) (unaudited) |
| Payout ratio (ordinary dividends declared) 80% 74.5% 72.9% -1.6% Gearing — Net Debt 45-55% 44.0% 45.2% 1.2% Interest Cover — EBITDA/ Greater Net Interest Expense than 8 13.2 12.9 (0.3) Debt Servicing — Net 1.3 — 1.7 Debt/ EBITDA times 1.1 1.1 0.0 |
| The impact of AASB 132/139 Financial Instruments has been excluded from this analysis due to the relevant transition date being 1 July 2005. |
| Debt coverage ratios not materially impacted |
| A-IFRS at Telstra – key messages |
| ___No impact on Telstra’s strategy and business performance: |
| ___Management decisions are not affected by A-IFRS |
| ___Telstra’s operations are not impacted |
| ___Under A-IFRS there is likely to be increased volatility in earnings |
| ___A-IFRS will not significantly affect net cash flow, ability to borrow funds, or dividends capacity |
| ___No change to commitments ___No change to returns to shareholders |
| Focus on free cash flows and shareholder returns is not compromised |
| Restated Income StatementSix months to 31 December 2004 Increase/(decrease) Presentation Accounting Total A-IFRS AGAAP adjustments adjustments adjustments A-IFRS $ million $ million $ million $ million $ million (unaudited) (unaudited) (unaudited) (unaudited) (unaudited)Income Revenue (excluding interest revenue) 11,382 (96) — (96) 11,286 Other income — 74 — 74 74 11,382 (22) — (22) 11,360Expenses- Labour 1,812 — 73 73 1,885 Goods and services purchased 2,124 — — — 2,124 Other expenses 1,909 (22) (24) (46) 1,863 5,845 (22) 49 27 5,872 Net losses from joint ventures and associates — — (1) (1) (1) 5,845 (22) 48 26 5,871 EBITDA 5,537 — (48) (48) 5,489 Depreciation and amortisation 1,850 — (117) (117) 1,733 EBIT 3,687 — 69 69 3,756 Interest revenue 35 — (1) (1) 34 Finance Costs 406 — 52 52 458 Net finance costs 371 — 53 53 424Profit before Income Tax Expense3,316 — 16 16 3,332 Income tax expense 979 — (38) (38) 941Net Profit2,337 — 54 54 2,391 Minority interest in net loss — — — — -Net profit available to Telstra Entity s/holders2,337 — 54 54 2,391 The impact of AASB 132/139 Financial Instruments has been excluded from this analysis due to the relevant transition date being 1 Page 25 July 2005. |
| IncomeSix months to 31 December 2004 $ million $ million $ million $ million (unaudited) (unaudited) (unaudited) (unaudited) Sales Other Other Total |
| Revenue Revenue Income Income AGAAP revenue11,275 107 — 11,382A-IFRS adjustments — Improvement/(reduction)Presentation AASB 116 — Proceeds on sale of non-current assets — (29) 29 - AASB 116 — Book value of non-current assets disposed — — (22) (22) AASB 118 — Reclassification — (67) 67 - — (96) 74 (22)Accounting No impact — — — -A-IFRS income11,275 11 74 11,360 Page 26 |
| Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) |
| 31 December 2004 $ million (unaudited) |
| AGAAP earnings before interest, tax, depreciation and amortisation5,537A-IFRS adjustments — Improvement/(reduction)Presentation Income adjustments (22) AASB 116 — Book value of non-current assets disposed 22 - |
Accounting
Income adjustments -AASB 2 — Recognition of expense for share-based payments (6) AASB 2 — Reversal of expense under AGAAP for share-based payments 19 AASB 3 — Reversal of goodwill amortisation for joint ventures and associates 1 AASB 119 — Defined benefit cost — TSS and HKCSL (86) AASB 128 — Other capacity prepayment adjustments 24 |
| A-IFRS earnings before interest, tax, depreciation and amortisation5,489 |
| The impact of AASB 132/139 Financial Instruments has been excluded from this analysis due to the relevant transition date being 1 July 2005. Page 27 |
| Earnings Before Interest and Tax (EBIT) |
| 31 December 2004 $ million (unaudited) |
| AGAAP earnings before interest and tax3,687A-IFRS adjustments — Improvement/(reduction)Presentation EBITDA adjustments - |
-
| EBITDA adjustments (48) AASB 3 — Reversal of goodwill amortisation for controlled entities 72 AASB 123 — Decrease in depreciation from no longer capitalising interest 45 69 |
| A-IFRS earnings before interest and tax3,756 |
| The impact of AASB 132/139 Financial Instruments has been excluded from this analysis due to the relevant transition date being 1 July 2005. |
| Net Profit After Tax (NPAT)Six months to 31 December 2004 |
| $ million (unaudited) AGAAP net profit after tax available to Telstra entity shareholders2,337 |
| A-IFRS adjustments — Improvement/(reduction) |
| Presentation EBIT adjustments - |
| -Accounting EBIT adjustments 69 |
| AASB 2 — Elimination of interest revenue from Growthshare Trust (1) |
| AASB 112 — Movement in additional deferred tax balances 13 |
| AASB 116 — Different discount rate for deferred consideration on acquisition of assets (4) |
| AASB 119 — Tax effect of defined benefit cost 24 |
| AASB 123 — Increase in finance costs from no longer capitalising interest (48) |
| AASB 123 — Tax effect adjustment of no longer capitalising interest 1 |
| A-IFRS net profit after tax available to Telstra entity shareholders2,391 |
| The impact of AASB 132/139 Financial Instruments has been excluded from this analysis due to the relevant transition date being 1 July 2005. Page 29 |
| Six months to 31 December Basic Diluted cents cents (unaudited) (unaudited) |
| AGAAP earnings per share18.6 18.6 |
| A-IFRS adjustments — Improvement/(reduction) |
| NPAT adjustments 0.4 0.4 AASB 2 — Weighted average number of shares held by Growthshare Trust and under TESOP loans |
| 0.1 0.1 AASB 2 — Shares assumed to be issued for no consideration — (0.1) |
| A-IFRS earnings per share19.1 19.0 |
| The impact of AASB 132/139 Financial Instruments has been excluded from this analysis due to the relevant transition date being 1 July 2005. |
| Restated Balance SheetSix months to 31 December 2004 Increase/(decrease) Presentation Accounting Total A-IFRS AGAAP adjustments adjustments adjustments A-IFRS $ million $ million $ million $ million $ million (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) Current assets 6,070 (537) 5 (532) 5,538 Non current assets 30,418 371 (382) (11) 30,407 Total assets 36,488 (166) (377) (543) 35,945 Current liabilities 7,868 — (13) (13) 7,855 Non current liabilities 13,366 — 216 216 13,582 Total liabilities 21,234 — 203 203 21,437 Net assets 15,254 (166) (580) (746) 14,508 Equity Share capital 5,793 (166) (103) (269) 5,524 Reserves (160) — 94 94 (66) Retained earnings 9,619 — (571) (571) 9,048 Equity available to Telstra Entity shareholders 15,252 (166) (580) (746) 14,506 Minority interest 2 — — — 2 Total shareholders’ equity 15,254 (166) (580) (746) 14,508 The above assumes a 1 July 2003 transition date, and excludes the impact of AASB 132/139 Financial Instruments. A 1 July 2004 transition date would result in some differences to those noted above. |
| Net DebtSix months to 31___Net debt is defined asDecember 2004total current and non$ million current borrowings(unaudited) less liquid interest- bearing assetsAGAAP net debt11,972 ___From 1 July 2005,A-IFRS adjustments — Increase/(decrease)AASB 139 will impactPresentationon net debt as the fair No impact value hedge — component ofAccounting borrowings will be AASB 2 — Cash held by Growthshare Trust (5) recognised at fair (5) value, rather than translated spot value |
| A-IFRS net debt11,967 The impact of AASB 132/139 Financial Instruments has been excluded from this analysis due to the relevant transition date being 1 July 2005. Page 32 |
| Restated Cash Flow StatementSix months to 31 December 2004 Improvement/(reduction) Presentation Accounting Total A-IFRS AGAAP adjustments adjustments adjustments A-IFRS $ million $ million $ million $ million $ million (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) Cash flows from operating activities 3,993 401 (1) 400 4,393 Cash flows from investing activities (2,384) (33) — (33) (2,417) Free cash flow 1,609 368 (1) 367 1,976 Cash flows from financing activities (1,189) (368) 3 (365) (1,554) Net increase/(decrease) in cash 420 — 2 2 422 Foreign currency conversion (5) — — — (5) Cash at the beginning of the period 687 — 3 3 690 Cash at the end of the period 1,102 — 5 5 1,107 The impact of AASB 132/139 Financial Instruments has been excluded from this analysis due to the relevant transition date being 1 July 2005. ___Free cash flow change reflects the movement of interest paid from operating to financing activities, and bills of exchange from financing to investing activities Page 33 |
| Hedging of interest rate risk |
| Under current AGAAP – portfolio hedging in place to achieve fixed float ratio |
| + Foreign Currency borrowingsDEBT |
| +/-Cross Currency Swaps Fixed Rate -Cash / Short Term Investments Floating Swap = NET DEBT Profile Portfolio per target |
| Hedging of interest rate risk |
| Under AASB 139 – no portfolio hedge, individual hedging relationships are established |
| = Underlying Debt + Domestic borrowings + Domestic borrowings + AUD interest rate swap = Debt with Fixed Float ratio +Foreign Currency borrowings = |
| +/-Cross Currency SwapsFair Value hedge relationships |
| + Foreign Currency borrowings +/- Cross Currency Swaps + AUD interest rate swap =Debt with Fixed Float ratio |
| Cash Flow hedge relationships |
| -Cash / Short Term Investments = NET DEBT |
| Borrowings denominated in foreign currency (not translation hedges) |
| Objective: Obtain the best AUD funding with desired fixed:float ratio outcome Often borrowings sourced from overseas markets give the best result (pricing, maturity) |
| Eg. EUR long term borrowing – pay fixed EUR hedged to pay fixed / pay float AUD |
| 1 2 3 EUR borrowing EUR Interest Rate Swap EUR/AUD Cross Currency Swap |
| Pay fixed EUR Rec fixed EUR/Pay float EUR Rec float EUR/Pay float AUD (underlying exposure) (derivative) (derivative) |
| Interest Rate Management Par |
| · All derivatives (2, 3 & 4) are recorded at Fair Value |
| · Portion of 1, 2 & 3 will be designated in a Fair Value (FV) hedgeAUD Interest Rate Swap |
| • Remaining portion of 1, 2 & 3 and all of 4 will be designated in a Cash Flow (CF) hedge |
| · In a FV hedge, all instruments will be recorded at FV and impact taken to P/L |
| · In a CF hedge, 1 is valued at cost, 2-4 will be recorded in OCI with any “ineffectiveness” (derivative) taken to P/L |
REACH Operating Model
Following REACH’s 10 January 2005 announcement on data capacity and third party business, Telstra today announced further REACH operational model improvements.
These improvements include:
| · | Dedicated components of REACH’s international cable capacity have been allocated to Telstra and PCCW. |
| |
| · | Telstra and PCCW will each pay REACH US$157 million (in Telstra’s case settled by way of a discharge of REACH’s liabilities under the Capacity Prepayment Agreement). Telstra and PCCW have also each committed to funding a half share of REACH’s committed capital expenditure (up to 2022) being about US$106 million each. |
| |
| · | REACH will manage allocated capacity on behalf of Telstra and PCCW and provide Telstra and PCCW with outsourced and other services including data and voice. |
| |
| · | Telstra and PCCW will each pay REACH an outsourcing fee on a cost-plus mark up basis. Satellite services will be purchased at market rates. |
| |
| · | REACH will continue its profitable third party voice and satellite business. |
| |
| · | Telstra may fund and acquire further required cable capacity for management by REACH as part of the outsourcing arrangements. |
REACH will retain the right to drawdown on its $US50 million shareholder working capital facility of June 2004.
Telstra’s Chief Financial Officer, John Stanhope said, “This is a logical conclusion of our quest for improved operational and financial efficiencies in REACH.
“This model is advantageous as it allows the shareholders to own and use allocated capacity in a cost effective manner through REACH exploiting economies of scale.
“It incents the shareholders to maximise the economies of scale through outsourcing services to REACH. REACH has further scope to reduce the shareholder outsourcing fees by continuing to actively and profitably sell voice and satellite services to third party customers.
“By outsourcing the management of capacity to REACH, the shareholders have created a model that could be replicated in the industry,” he said.
Telstra Media Contact
Graeme Salt
Tel:61 2 9298 5256
Mbl:0417 653 862
Telstra’s national media inquiry line is 13 1639 and the Telstra Corporate Communications
Centre is located at:www.telstra.com.au/communications/media/index.cfm
| | | |
| | Telstra Corporation Limited |
| | ABN 33 051 775 556 |
Broadband milestone for BigPond
Australia’s leading ISP, BigPond, today announced it had achieved the milestone of 500,000 ADSL consumer broadband customers.
BigPond Managing Director, Mr Justin Milne, said today, “This milestone, which represents an increase of around 140% over the number of ADSL customers we had a year ago, augurs well for 2005 seeing record broadband growth in Australia,” he said.
“2004 saw the broadband market ‘on fire’ but I expect 2005 to leave it in the shade.
“The introduction of great offers in what is probably one of the most competitive marketplaces for broadband in the world, means that consumers are the winners.
A recent report by the UK-based IT analysts Point-Topic.com found that among countries with more than one million lines, Australia had the highest broadband growth during the second half of calendar 2004.
“We’re certain that the next financial year will see this explosive growth continue as more Australians see for themselves just how good broadband really is,” Mr Milne said.
Telstra media contact:
Craig Middleton
BigPond Corporate Affairs Manager
(02) 8236 4372 or 0400 931 772
craig.middleton@team.telstra.com
Telstra’s national media inquiry line is 13 16 39 and the Telstra Corporate Communications Centre is
located at:www.telstra.com.au/communications/media
| | | |
| | Telstra Corporation Limited |
| | ABN 33 051 775 556 |
| | | |
| 20 April 2005 | | Office of the Company Secretary |
| | | |
| The Manager | | Level 41 |
| | 242 Exhibition Street |
| Company Announcements Office | | MELBOURNE VIC 3000 |
| Australian Stock Exchange | | AUSTRALIA |
4th Floor, 20 Bridge Street | | |
| SYDNEY NSW 2000 | | Telephone 03 9634 6400 |
| | | Facsimile 03 9632 3215 |
ELECTRONIC LODGEMENT
Dear Sir or Madam
Telstra Corporation Limited 04/05 Third Quarter Market Update
In accordance with the listing rules, I attach an announcement for release to the market.
The CEO and CFO have pre-recorded their comments on the 3rd Quarter revenue performance. This commentary will be available on Telstra’s Corporate Communications Centre and can be access via the following URL –http://www.telstra.com.au/communications/calendar/calendarevent.cfm?ObjectID=801
| | | |
| Yours sincerely | | |
| | | |
| | |
Douglas Gration | | |
| Company Secretary | | |
| | | |
| | Telstra Corporation Limited |
| | ACN 051 775 556 |
| | ABN 33 051 775 556 |
Telstra Corporation Limited and controlled entities
Telstra Corporation Limited
04/05 Third Quarter
Market Update
Continuing solid revenue growth
Highlights for the third quarter and the nine-month period to 31 March 2005
| • | Reported sales revenue grew by 6.5% in the third quarter and 7.4% to $16.6 billion year to date |
| |
| • | Underlying sales revenue grew by 3.3% in the third quarter and 4.3% to $16.1 billion year to date |
| |
| • | Underlying domestic sales revenue growth of 2.8% in the third quarter and 4.0% to $15 billion year to date |
| |
| • | Internet & IP Solutions revenue grew by 38% in the third quarter and 35% or $251 million year to date |
| |
| • | Mobiles revenue grew by 7.6% in the third quarter and 8.3% or $238 million year to date |
| |
| • | Underlying advertising and directories revenue grew by 15% in the third quarter and 8.3% or $83 million year to date |
| |
| • | A total of 246,000 broadband subscribers (retail and wholesale) were added in the third quarter |
| |
| • | Total mobile subscribers reached 8.1 million, an increase of 76,000 in the third quarter |
| | | |
| 04/05 Third Quarter Market Update | | |
| 20 April 2005 | |  |
Telstra Corporation Limited and controlled entities
Telstra Corporation Limited
04/05 Third Quarter
Market Update
Overview
Quarter ended 31 March 2005:
Reported total revenueincreased by 7.6% or $391 million to $5,521 million, which included increased revenue of $155 million generated by recently acquired entities and $87 million from investment and property sales.Reported sales revenueincreased by 6.5% or $326 million to $5,340 million.
Underlying1total revenueincreased by 2.8% or $141 million to $5,208 million.Underlying1 sales revenue increased by 3.3% or $163 million to $5,169 million due to growth in broadband, mobiles, pay TV bundling, advertising and directories, and offshore business activities offset by a decline in PSTN calling products as migration to other products occurs.Underlying1 domestic sales revenueincreased by 2.8% or $132 million to $4,785 million.
The third quarter results include the impact of an early Easter in 2004/05 and a leap year in 2003/04 resulting in 3 less working days than the prior corresponding period.
Nine months ended 31 March 2005:
Reported total revenueincreased by 5.9% or $947 million to $16,903 million which included increased revenue of $485 million generated by recently acquired entities and a decline in revenue from investment and property sales of $108 million.Reported sales revenueincreased by 7.4% or $1,145 million to $16,615 million.
Underlying1total revenueincreased by 3.6% or $570 million to $16,242 million.Underlying1 sales revenueincreased by 4.3% or $660 million to $16,122 million due to growth in broadband, mobiles, pay TV bundling, advertising and directories, offshore business activities and other sales & service offset by a decline in PSTN calling products as migration to other products occurs.Underlying1 domestic sales revenueincreased by 4.0% or $569 million to $14,961 million.
The following details the Telstra group revenue result for the quarter ended 31 March 2005.
Footnotes:
All percentages relate to growth on prior corresponding period (PCP)
All statistical data represents management’s best estimates and excludes all Telstra internal usage statistics
| (1) | Underlying results are produced to allow like for like comparison by removing those items that are: not of a comparable nature owing to structural changes to the business such as acquisitions; significant and non recurring; or not part of the core operations of the business. |
| |
| | Underlying numbers exclude proceeds from property and investment sales and revenues from the acquisitions of Trading Post, KAZ Group, PSINet Group, Damovo and Universal Publishers |
| | | |
| 04/05 Third Quarter Market Update | | |
| 20 April 2005 | | |
| Page 2 | | |
Telstra Corporation Limited and controlled entities
Mobiles
Total mobiles revenue, including wholesale mobiles, grew by 7.6% or $71 million for the quarter, with growth of 8.3% or $238 million for the nine months ended 31 March 2005.
Mobile services revenue increased by 7.6% or $65 million for the quarter. Growth of 8.5% or $220 million was achieved for the nine months. Increases for the quarter were comprised of access fees and call revenues of $21 million, value added services of $41 million and wholesale services of $3 million.
Access fees and call revenue growth of 3.3% or $21 million for the quarter, due to the increase in mobile services in operation of 12% to 8.1 million and increases in mobile voice minutes of 5.6%. Yields have declined due to the impact of promotions such as FreeChat, FlatChat, Free24/7, 18 cents per 5 minutes and capped plans which is reflective of the competitive mobiles environment. These initiatives have impacted the yield for both prepaid and postpaid products. The increases for the quarter were attributable to:
| · | Growth in prepaid revenues of 2.9% or $3 million reflecting a 27% increase in the prepaid services base and an increase in calling minutes of 12%. The reduction in yield is attributable to the increased usage of discounts, which are provided in the form of bonus options that are taken up by the customer on Telstra Prepaid Plus such as 1c per minute and double recharge. In addition, the third quarter saw lower than average additions to prepaid services from lower activations and higher deactivations as the variety of consumer offers increased and competition intensified. |
| |
| · | Growth in postpaid revenues of 3.2% or $18 million due to the growth in postpaid services of 3.5% and postpaid calling minutes of 4.9% offset by yield reductions due to the above mentioned chat promotions. |
Increase in value added services for the quarter was achieved by:
| | · | Growth in mobile data revenue of 15% or $17 million, attributable to: |
| | § | Short Message Service (SMS) growth of 8.0% or $8 .3 million as the number of messages grew by 14% to 567 million. Yield reductions resulted from increased discounting initiatives such as Telstra Rewards and Bonus Options which provide free text and picture messages or 15c text messages; |
| |
| | § | Other mobile data growth of 79% or $9.0 million due to growth in General Packet Radio Service (GPRS) usage including Telstra wireless access protocols (WAP). Data transmission volumes have increased as GPRS phones and hand held computers such as the Blackberry continue to grow momentum in the corporate segment. |
| | · | International roaming revenue growth of 53% or $21 million for the quarter due to increase in inbound roaming pricing and increased inbound activity due to the continuing growth in international travel. |
| |
| | · | Messagebank revenue increased by 6.7% or $3 million. |
Mobile handset revenue achieved growth of 7.6% or $6 million with 6.8% or $18 million for the nine months ended 31 March 2005. Growth for the quarter was attributable to the increased sales of prepaid phones driven by the growth in the number of prepaid customers.
| | | |
| 04/05 Third Quarter Market Update | | |
| 20 April 2005 | | |
| Page 3 | | |
Telstra Corporation Limited and controlled entities
Internet and IP
Internet and IP solutions revenue grew by 38% for the quarter driven by a $76 million increase in broadband revenue. For the nine months ended 31 March 2005 revenue grew by 35% or $251 million.
| • | BigPondTM broadband revenue grew by $44 million for the quarter due to a 112% increase in subscribers across ADSL and cable. The growth of this product is attributable to increased internet usage, self install kits and successful broadband marketing campaigns which included new pricing plans. Business DSL has also contributed to the revenue growth with large contract wins and migration to the newer technology. For the nine month period revenue has increased by 64% or $125 million. |
| |
| • | Wholesale broadband revenue increased by $32 million for the quarter. Wholesale DSL Layer 2 revenue grew by $39 million due to a 240% increase in SIOs offset by reduced yields resulting from competitive pricing pressures. Flexstream revenue declined due to decreased SIOs as customers migrate to other data products and significant yield reductions aimed at customer retention. Wholesale broadband revenue grew by 79% or $78 million for the nine month period. |
| |
| • | Narrowband revenue, representing dial-up internet, has declined by $7 million despite negligible movement in SIOs. This is due to significant price competition in the market and the migration of high yield users to broadband services. For the nine month period dial-up internet revenue has decreased by 4.1%. |
| |
| • | IP solutions revenue grew by $16 million for the quarter due to increased IP MAN/Ethernet revenue from major contract wins and extension of coverage on existing services in the government sector. IP WAN revenue also improved due to major network expansions for large corporate contracts as customers migrate from older product technologies such as frame relay and ISDN. IP Solutions revenue has increased by 36% or $39 million for the nine month period. |
| | | |
| 04/05 Third Quarter Market Update | | |
| 20 April 2005 | |
|
| Page 4 | | |
Telstra Corporation Limited and controlled entities
PSTN Products
PSTN products revenue has decreased by 4.8% to $1,873 million for the quarter. For the nine months ended 31 March 2005 PSTN products revenue has decreased by 2.8% to $5,845 million. The increase in basic access revenue from the continued impact of rebalancing initiatives has been offset by a decline in basic access lines and volume reductions across the calling products. Calling product volumes were impacted by the timing of the Easter holiday period.
| • | Basic access revenues grew by 4.5% to $831 million for the quarter due to a price increase in June 2004 as part of the rebalancing initiatives offset by a decline in the number of basic access lines due to competition and migration to other products such as ISDN, broadband and mobiles. For the nine month period basic access revenues grew by 5.2% or $126 million. |
| |
| • | Local call revenue has decreased by 18% for the quarter reflecting a 12% reduction in the number of calls due to product substitution to mobiles, fixed to mobiles, internet and ISDN products. Yield has declined by 7% due to competitive prices across all market segments and package discounts offered in the consumer market. Consumer churn to wholesale has also contributed to a lower yield. Local call revenue has declined by 14% for the nine months ended 31 March 2005. |
| |
| • | National long distance revenue decreased by 12% for the quarter attributable to an 11% reduction in call minutes due to shorter call durations and product substitution to mobiles, fixed to mobile, internet and ISDN. Yield has also declined due to increased capped calling rates and competitive pricing pressures offset by flagfall increases. For the nine month period national long distance revenue has reduced by 9.9%. |
| |
| • | Fixed to mobile revenue has declined by 5% for the quarter attributable to a lower yield resulting from increased competitive pricing pressures in the business sector offset by a higher yield in the consumer market due to flagfall increases. The minutes of use increased 0.5% for the quarter. Fixed to mobile revenue has declined by 1.8% for the nine month period. |
| |
| • | International direct® revenue has reduced by 14% for the quarter attributable to a 12% decline in the number of call minutes and a slight decline in yield. This reduction was due to the continued migration to aggressively priced prepaid calling cards and customers using other products such as e-mail and internet chat facilities. For the nine month period international direct revenue has decreased by 12%. |
| |
| • | PSTN value added services revenue was flat for the quarter. The decline in Messagebank® has slowed as the impact of customer migration to Telstra Home Message 101TM was felt mainly in the prior year third quarter. Call Return (*10#) usage declined slightly after an increase in calling number display subscriptions and higher call completion rates although the decline has slowed considerable in the third quarter. PSTN value added services revenue has reduced by 4.1% for the nine months. |
| | | |
| 04/05 Third Quarter Market Update | | |
| 20 April 2005 | |
|
| Page 5 | | |
Telstra Corporation Limited and controlled entities
Specialised Data
Specialised data revenue decreased by 9.3% for the quarter and 5.8% for the nine-month period, reflecting a decline in mature products such as Leased Lines and DDS (Digital Data Services) where customers have migrated to newer technologies. Frame relay revenue declined, although SIOs have increased as more customers take up IP WAN for which frame relay is the premium access. ATM revenue has increased, despite being in the mature phase of its life cycle, due to increased SIOs and the reallocation of some revenue previously included in frame relay.
ISDN Products
ISDN revenue has declined by 4.8% or $11 million for the quarter and 4.3% or $30 million for the nine-month period. This includes a 27% or $14 million decrease in ISDN data call revenue for the quarter as corporate customers continued to migrate to more technologically advanced products such as IP products. This is partly offset by growth in ISDN access revenue of 5% or $5 million due to the penetration into the SME and consumer markets for ISDN. The number of services grew by 6.3%.
Advertising & Directories
Reported advertising and directories revenues, including revenue generated by Trading Post, increased by $72 million for the quarter and $196 million for the nine month period. After excluding Trading Post revenues, underlying advertising and directories revenue increased by 15% or $35 million for the quarter and 8.3% or $83 million for the nine month period.
For the quarter Yellow Pages revenue has increased by 8.6% or $15 million attributable to the introduction of full-page advertising options into additional categoriesin regional books. White Pages revenue grew by 22% or $10 million due to the continued success of additional colour listing options and higher customer yields in regional books. Other directory products grew by 50% mainly in the area of online advertising and location and navigation products from additional customers.
Intercarrier Services
Intercarrier services revenue grew by 2.3% for the quarter and 2.8% for the nine month period. SMS interconnect revenue and wholesale roaming revenue both increased due to higher volumes. Facilities access revenue increased due to higher demand for access to exchanges, equipment and mobile towers as other carriers seek to expand their infrastructure. These increases were offset by a decline in PSTN terminating revenues due to a yield reduction arising from price rebalancing initiatives and a decline in volumes. Mobiles terminating revenues declined for the quarter due to regulatory driven pricing changes, partly offset by higher volumes from increased mobile services.
Solutions Management
Reported solutions management revenue increased by 79% or $95 million for the quarter. This includes revenue generated by the KAZ group of $84 million and Damovo of $3 million. Revenue for the nine-month period increased 87% or $315 million including revenue generated by the KAZ group of $272 million and Damovo of $8 million. Telstra acquired the KAZ Group in July 2004 and Damovo in September 2004.
| | | |
| 04/05 Third Quarter Market Update | | |
| 20 April 2005 | |
|
| Page 6 | | |
Telstra Corporation Limited and controlled entities
Without the benefit of these acquisitions, underlying solutions management revenues increased by 6.6% or $8 million for the quarter and 9.6% or $35 million for nine-month period. The growth is due to the commencement of significant new radio services construction contracts and an increase in managed wide area networks.
Hong Kong CSL
In local currency (HK$), revenue increased by 8.9% for the quarter and for the nine month period revenue increased by 8.2%. This was achieved through continued strong growth in mobile handset sales due to the move into new market segments and the launch of new handset models with advanced features; along with strong growth in prepaid, international voice and data revenue through MMS handsets and innovative content applications. These increases have been partially offset by a continuing decline in local voice revenue as a result of the aggressive price competition.
In Australian dollars, revenues increased by 7.2% or $12 million for the quarter, which also includes and adverse exchange rate impact of $3 million. For the nine month period revenue increased by 2.8% or $15 million with the exchange rate impact adversely affecting results by $30 million.
TelstraClear
Total revenue growth of 3.0% or NZ$5 million was achieved for the quarter and for the nine month period revenue increased by 3.3% or NZ$16 million. On a stand-alone basis, including intercompany revenue, TelstraClear revenue increased by 3.0% for the quarter and 3.7% for the nine months. Revenue growth was achieved from continued strong retail revenue growth, particularly in the business and government sector and a strong consumer growth from increased PSTN on-net charges and homeplan. This was partially offset by a decrease in wholesale due to rate reductions with international carriers in the wholesale market.
In Australian dollars revenue increased by 9.7% or $14 million for the quarter and for the nine month period increased by 8.2% or $35 million, the exchange rate impact positively affected results by $15 million.
Offshore Services Revenue
Reported offshore revenue has increased by 76% or $28 million for the quarter and included revenue generated by PSINet of $21 million. For the nine months reported revenue increased 117% or $99 million and included PSINet revenue of $51 million. Telstra acquired PSINet in August 2004.
Underlying offshore revenue grew by 19% or $7 million for the quarter and for the nine month period increased by 57% or $48 million. This is primarily due to Global Sales acquiring the customer & network bases from Powergen and Cable Telecom in the UK in October 2003 and February 2004 respectively.
| | | |
| 04/05 Third Quarter Market Update | | |
| 20 April 2005 | |
|
| Page 7 | | |
Telstra Corporation Limited and controlled entities
Inbound calling products
Inbound calling products revenue declined by 8.3% for the quarter. For the nine month period revenue decreased by 4.5%. Competitive market pressures on prices have resulted in a decline in net yield and the customer base.
Pay TV Bundling
There has been continued rapid growth in Pay TV bundling with revenue increasing by 73% or $30 million for the quarter and 81% or $86 million for the nine-month period. Telstra’s bundled Foxtel subscribers have increased by 25% to 273,000. Telstra now has 52,000 Austar bundled subscribers. The growth in services is due to the introduction of digital TV and a change to the packaging and bonus option introduced in June 2004.
Payphones
Payphone revenue has declined by 19% or $7 million for the quarter and 15% or $16 million for the nine-month period. This is from a combined effect of the loss of payphone provisioning contracts and lower usage because of product substitution to prepaid calling cards and mobile phones.
Customer Premises Equipment
Reported customer premises equipment revenue increased by 28% or $13 million for the quarter and 21% or $29 million for the nine-month period. This includes revenue generated from PABX equipment sales for Damovo, which was acquired in September 2004.
Underlying customer premises equipment revenue decr eased by $6 million for the quarter and $10 million for the nine-month period. This is a combined effect of retail competition for fixed line handset sales and product substitution to mobiles.
Other Sales & Services
Reported other sales and services revenue grew by 24% or $36 million for the quarter and included a reduction to revenue of $1 million in the KAZ group, acquired by Telstra in July 2004. For the nine month period reported other sales and services revenue increased by 31% or $135 million and included revenue of $2 million generated by the KAZ group.
Underlying other sales and services revenue grew by 25% or $37 million for the quarter. This included revenue growth from miscellaneous revenue with the introduction of payment processing fees on customer credit card payments $6 million and increased overdue account fees $7 million, commercial recoverable works $8 million including Foxtel Pay TV digital conversion, and external construction revenue $8 million due to increased focus on building and targeting network construction markets. For the nine month period underlying sales and services revenue grew 31% or $133 million which also included a negative prior period accounting adjustment and growth in HFC Cable usage revenue from Foxtel reflecting increased product demand.
Other Revenue
Reported other revenue increased by 56% or $65 million for the quarter, which included the sale of our interests in Intelsat, Ltd and Infonet Services Corporation. Underlying other revenue decreased by 36% or $22 million for the quarter due to the reduction of government receipts from grants and other miscellaneous refunds.
Reported other revenue decreased 41% or $198 million for the nine months ended 31 March 2005 due to the reduction of proceeds from investment sales of $165 million, which included the prior year sale of IBMGSA for $154 million. Underlying other revenue decreased by 43% or $90 million for the nine months due to the sale of mid range servers in the prior year and lower other non-communications plant sales.
| | | |
| 04/05 Third Quarter Market Update | | |
| 20 April 2005 | |
|
| Page 8 | | |
Telstra Corporation Limited and controlled entities
Service
Telstra continues to provide high service levels across Australia as evident in the recent Australian Communications Authority report for the December 2004 quarter. National Customer Service Guarantee (CSG) performance for connections was 92% and fault re pairs 91%. CSG performance was above 90% in all categories, urban, rural and remote areas.
Outlook
The third quarter trading results are in line with our aspirations to lift revenues close to industry growth rates. In an environment of aggressive price competition and our changing revenue mix we continue to drive productivity improvements everywhere and contain costs to deliver EBITDA and EBIT growth.
For enquiries on this announcement please contact:
| | | |
John Stanhope | | David Anderson |
Chief Financial Officer | | General Manager, Investor Relations |
| Telstra Corporation Limited | | Telstra Corporation Limited |
| | Phone: 61 3 9634 8632 |
| | Email: investor.relations@team.telstra.com |
| | | |
| 04/05 Third Quarter Market Update | | |
| 20 April 2005 | |
|
| Page 9 | | |
Market Update
for three months ending 31 March 2005
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | Q3 04/05 | | | | Q3 04/05 | | | | | | | | | Q3 03/04 | | | | Q3 03/04 | | | | | | | | | Reported | | | | Underlying | | | | Underlying | | |
| | $ millions | | | Reported | | | | Underlying | | | | | | | | | Reported | | | | Underlying | | | | | | | | | Growth % | | | | Growth % | | | | Movement | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Mobiles | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Mobile services | | | | 918 | | | | | 918 | | | | | | | | | | 853 | | | | | 853 | | | | | | | | | | 7.6 | | | | | 7.6 | | | | | 65 | | |
| | Mobile handsets | | | | 85 | | | | | 85 | | | | | | | | | | 79 | | | | | 79 | | | | | | | | | | 7.6 | | | | | 7.6 | | | | | 6 | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Total Mobiles | | | | 1,003 | | | | | 1,003 | | | | | | | | | | 932 | | | | | 932 | | | | | | | | | | 7.6 | | | | | 7.6 | | | | | 71 | | |
| | Internet and IP solutions | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | BigPond narrowband | | | | 67 | | | | | 67 | | | | | | | | | | 74 | | | | | 74 | | | | | | | | | | (9.5 | ) | | | | (9.5 | ) | | | | (7 | ) | |
| | BigPond broadband | | | | 116 | | | | | 116 | | | | | | | | | | 72 | | | | | 72 | | | | | | | | | | 61.1 | | | | | 61.1 | | | | | 44 | | |
| | Wholesale broadband | | | | 71 | | | | | 71 | | | | | | | | | | 39 | | | | | 39 | | | | | | | | | | 82.1 | | | | | 82.1 | | | | | 32 | | |
| | Wholesale internet direct and data | | | | 8 | | | | | 8 | | | | | | | | | | 4 | | | | | 4 | | | | | | | | | | 100.0 | | | | | 100.0 | | | | | 4 | | |
| | Internet direct | | | | 29 | | | | | 29 | | | | | | | | | | 26 | | | | | 26 | | | | | | | | | | 11.5 | | | | | 11.5 | | | | | 3 | | |
| | IP solutions | | | | 54 | | | | | 54 | | | | | | | | | | 38 | | | | | 38 | | | | | | | | | | 42.1 | | | | | 42.1 | | | | | 16 | | |
| | Other | | | | 6 | | | | | 6 | | | | | | | | | | 2 | | | | | 2 | | | | | | | | | | 200.0 | | | | | 200.0 | | | | | 4 | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Total Internet and IP solutions | | | | 351 | | | | | 351 | | | | | | | | | | 255 | | | | | 255 | | | | | | | | | | 37.6 | | | | | 37.6 | | | | | 96 | | |
| | PSTN Products | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Basic access | | | | 831 | | | | | 831 | | | | | | | | | | 795 | | | | | 795 | | | | | | | | | | 4.5 | | | | | 4.5 | | | | | 36 | | |
| | Local calls | | | | 302 | | | | | 302 | | | | | | | | | | 370 | | | | | 370 | | | | | | | | | | (18.4 | ) | | | | (18.4 | ) | | | | (68 | ) | |
| | PSTN value added services | | | | 62 | | | | | 62 | | | | | | | | | | 62 | | | | | 62 | | | | | | | | | | 0.0 | | | | | 0.0 | | | | | 0 | | |
| | National long distance calls | | | | 244 | | | | | 244 | | | | | | | | | | 278 | | | | | 278 | | | | | | | | | | (12.2 | ) | | | | (12.2 | ) | | | | (34 | ) | |
| | Fixed to mobile | | | | 378 | | | | | 378 | | | | | | | | | | 398 | | | | | 398 | | | | | | | | | | (5.0 | ) | | | | (5.0 | ) | | | | (20 | ) | |
| | International direct | | | | 56 | | | | | 56 | | | | | | | | | | 65 | | | | | 65 | | | | | | | | | | (13.8 | ) | | | | (13.8 | ) | | | | (9 | ) | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Total PSTN | | | | 1,873 | | | | | 1,873 | | | | | | | | | | 1,968 | | | | | 1,968 | | | | | | | | | | (4.8 | ) | | | | (4.8 | ) | | | | (95 | ) | |
| | Specialised Data | | | | 234 | | | | | 234 | | | | | | | | | | 258 | | | | | 258 | | | | | | | | | | (9.3 | ) | | | | (9.3 | ) | | | | (24 | ) | |
| | ISDN Products | | | | 218 | | | | | 218 | | | | | | | | | | 229 | | | | | 229 | | | | | | | | | | (4.8 | ) | | | | (4.8 | ) | | | | (11 | ) | |
| | Advertising and Directories | | | | 314 | | | | | 269 | | | | | | | | | | 242 | | | | | 234 | | | | | | | | | | 29.8 | | | | | 15.0 | | | | | 35 | | |
| | Intercarrier services | | | | 272 | | | | | 272 | | | | | | | | | | 266 | | | | | 266 | | | | | | | | | | 2.3 | | | | | 2.3 | | | | | 6 | | |
| | Solutions management | | | | 216 | | | | | 129 | | | | | | | | | | 121 | | | | | 121 | | | | | | | | | | 78.5 | | | | | 6.6 | | | | | 8 | | |
| | HK CSL | | | | 179 | | | | | 179 | | | | | | | | | | 167 | | | | | 167 | | | | | | | | | | 7.2 | | | | | 7.2 | | | | | 12 | | |
| | TelstraClear | | | | 158 | | | | | 158 | | | | | | | | | | 144 | | | | | 144 | | | | | | | | | | 9.7 | | | | | 9.7 | | | | | 14 | | |
| | Offshore Services Revenue | | | | 65 | | | | | 44 | | | | | | | | | | 37 | | | | | 37 | | | | | | | | | | 75.7 | | | | | 18.9 | | | | | 7 | | |
| | Inbound calling products | | | | 110 | | | | | 110 | | | | | | | | | | 120 | | | | | 120 | | | | | | | | | | (8.3 | ) | | | | (8.3 | ) | | | | (10 | ) | |
| | PayTV Bundling | | | | 71 | | | | | 71 | | | | | | | | | | 41 | | | | | 41 | | | | | | | | | | 73.2 | | | | | 73.2 | | | | | 30 | | |
| | Customer premises equipment | | | | 60 | | | | | 41 | | | | | | | | | | 47 | | | | | 47 | | | | | | | | | | 27.7 | | | | | (12.8 | ) | | | | (6 | ) | |
| | Payphones | | | | 29 | | | | | 29 | | | | | | | | | | 36 | | | | | 36 | | | | | | | | | | (19.4 | ) | | | | (19.4 | ) | | | | (7 | ) | |
| | Other sales & services | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Telstra Information & Connection Services | | | | 32 | | | | | 32 | | | | | | | | | | 30 | | | | | 30 | | | | | | | | | | 6.7 | | | | | 6.7 | | | | | 2 | | |
| | Card Services | | | | 13 | | | | | 13 | | | | | | | | | | 14 | | | | | 14 | | | | | | | | | | (7.1 | ) | | | | (7.1 | ) | | | | (1 | ) | |
| | Security products | | | | 13 | | | | | 13 | | | | | | | | | | 13 | | | | | 13 | | | | | | | | | | 0.0 | | | | | 0.0 | | | | | 0 | | |
| | Customnet & Spectrum | | | | 27 | | | | | 27 | | | | | | | | | | 30 | | | | | 30 | | | | | | | | | | (10.0 | ) | | | | (10.0 | ) | | | | (3 | ) | |
| | HFCCable TV | | | | 15 | | | | | 15 | | | | | | | | | | 13 | | | | | 13 | | | | | | | | | | 15.4 | | | | | 15.4 | | | | | 2 | | |
| | Commercial & Recoverable Works | | | | 15 | | | | | 15 | | | | | | | | | | 7 | | | | | 7 | | | | | | | | | | 114.3 | | | | | 114.3 | | | | | 8 | | |
| | External Construction | | | | 21 | | | | | 21 | | | | | | | | | | 13 | | | | | 13 | | | | | | | | | | 61.5 | | | | | 61.5 | | | | | 8 | | |
| | Other | | | | 51 | | | | | 52 | | | | | | | | | | 31 | | | | | 31 | | | | | | | | | | 64.5 | | | | | 67.7 | | | | | 21 | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Total Other sales & services | | | | 187 | | | | | 188 | | | | | | | | | | 151 | | | | | 151 | | | | | | | | | | 23.8 | | | | | 24.5 | | | | | 37 | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Total Sales revenue | | | | 5,340 | | | | | 5,169 | | | | | | | | | | 5,014 | | | | | 5,006 | | | | | | | | | | 6.5 | | | | | 3.3 | | | | | 163 | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Other revenue | | | | 181 | | | | | 39 | | | | | | | | | | 116 | | | | | 61 | | | | | | | | | | 56.0 | | | | | (36.1 | ) | | | | (22 | ) | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Total revenue | | | | 5,521 | | | | | 5,208 | | | | | | | | | | 5,130 | | | | | 5,067 | | | | | | | | | | 7.6 | | | | | 2.8 | | | | | 141 | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Domestic Sales Revenue | | | | 4,934 | | | | | 4,785 | | | | | | | | | | 4,661 | | | | | 4,653 | | | | | | | | | | 5.9 | | | | | 2.8 | | | | | 132 | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Selected Statistical Data | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Mobile voice telephone minutes | | | | | | | | | 1,641 | | | | | | | | | | | | | | | 1,554 | | | | | | | | | | | | | | | 5.6 | | | | | 87 | | |
| | Short Message Service (SMS) (number of messages) | | | | | | | | | 567 | | | | | | | | | | | | | | | 499 | | | | | | | | | | | | | | | 13.6 | | | | | 68 | | |
| | Mobile services in operation (thousands) | | | | | | | | | 8,059 | | | | | | | | | | | | | | | 7,169 | | | | | | | | | | | | | | | 12.4 | | | | | 890 | | |
| | Broadband Retail subscribers | | | | | | | | | 718 | | | | | | | | | | | | | | | 338 | | | | | | | | | | | | | | | 112.4 | | | | | 380 | | |
| | Broadband Wholesale subscribers | | | | | | | | | 761 | | | | | | | | | | | | | | | 281 | | | | | | | | | | | | | | | 170.8 | | | | | 480 | | |
| | Total Broadband subscribers (thousands) | | | | | | | | | 1,479 | | | | | | | | | | | | | | | 619 | | | | | | | | | | | | | | | 138.9 | | | | | 860 | | |
| | Narrowband subscribers (thousands) | | | | | | | | | 1,202 | | | | | | | | | | | | | | | 1,197 | | | | | | | | | | | | | | | 0.4 | | | | | 5 | | |
| | Basic access lines in service | | | | | | | | | 10.17 | | | | | | | | | | | | | | | 10.34 | | | | | | | | | | | | | | | (1.6 | ) | | | | (0.17 | ) | |
| | Local calls (number of calls) | | | | | | | | | 2,045 | | | | | | | | | | | | | | | 2,324 | | | | | | | | | | | | | | | (12.0 | ) | | | | (279 | ) | |
| | National long distance minutes | | | | | | | | | 1,890 | | | | | | | | | | | | | | | 2,128 | | | | | | | | | | | | | | | (11.2 | ) | | | | (238 | ) | |
| | Fixed to mobile minutes | | | | | | | | | 1,075 | | | | | | | | | | | | | | | 1,070 | | | | | | | | | | | | | | | 0.5 | | | | | 5 | | |
| | International direct minutes | | | | | | | | | 141 | | | | | | | | | | | | | | | 161 | | | | | | | | | | | | | | | (12.4 | ) | | | | (20 | ) | |
| | ISDN access (basic lines equivalents) (thousands) | | | | | | | | | 1,329 | | | | | | | | | | | | | | | 1,250 | | | | | | | | | | | | | | | 6.3 | | | | | 79 | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Footnotes: |
| |
| | | All percentages relate to growth on prior correspoinding period (PCP) |
| |
| | | Underlying excludes property and investment sales and the impact of Trading Post, KAZ Group, PSInet Group, Damovo and Universal Publishers acquisitions. |
| |
| | | Statistical data is represented in millions unless otherwise stated, and represents management’s best estimates. |
Page 10
Market Update
for nine months ending 31 March 2005
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | Q3 04/05 | | | | Q3 04/05 | | | | | | | | | Q3 03/04 | | | | Q3 03/04 | | | | | | | | | Reported | | | | Underlying | | | | Underlying | | |
| | $ millions | | | Reported | | | | Underlying | | | | | | | | | Reported | | | | Underlying | | | | | | | | | Growth % | | | | Growth % | | | | Movement | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Mobiles | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Mobile services | | | | 2,814 | | | | | 2,814 | | | | | | | | | | 2,594 | | | | | 2,594 | | | | | | | | | | 8.5 | | | | | 8.5 | | | | | 220 | | |
| | Mobile handsets | | | | 283 | | | | | 283 | | | | | | | | | | 265 | | | | | 265 | | | | | | | | | | 6.8 | | | | | 6.8 | | | | | 18 | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Total Mobiles | | | | 3,097 | | | | | 3,097 | | | | | | | | | | 2,859 | | | | | 2,859 | | | | | | | | | | 8.3 | | | | | 8.3 | | | | | 238 | | |
| | Internet and IP solutions | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | BigPond narrowband | | | | 209 | | | | | 209 | | | | | | | | | | 218 | | | | | 218 | | | | | | | | | | (4.1 | ) | | | | (4.1 | ) | | | | (9 | ) | |
| | BigPond broadband | | | | 319 | | | | | 319 | | | | | | | | | | 194 | | | | | 194 | | | | | | | | | | 64.4 | | | | | 64.4 | | | | | 125 | | |
| | Wholesale broadband | | | | 177 | | | | | 177 | | | | | | | | | | 99 | | | | | 99 | | | | | | | | | | 78.8 | | | | | 78.8 | | | | | 78 | | |
| | Wholesale internet direct and data | | | | 21 | | | | | 21 | | | | | | | | | | 11 | | | | | 11 | | | | | | | | | | 90.9 | | | | | 90.9 | | | | | 10 | | |
| | Internet direct | | | | 90 | | | | | 90 | | | | | | | | | | 87 | | | | | 87 | | | | | | | | | | 3.4 | | | | | 3.4 | | | | | 3 | | |
| | IP solutions | | | | 148 | | | | | 148 | | | | | | | | | | 109 | | | | | 109 | | | | | | | | | | 35.8 | | | | | 35.8 | | | | | 39 | | |
| | Other | | | | 11 | | | | | 11 | | | | | | | | | | 6 | | | | | 6 | | | | | | | | | | 83.3 | | | | | 83.3 | | | | | 5 | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Total Internet and IP solutions | | | | 975 | | | | | 975 | | | | | | | | | | 724 | | | | | 724 | | | | | | | | | | 34.7 | | | | | 34.7 | | | | | 251 | | |
| | PSTN Products | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Basic access | | | | 2,531 | | | | | 2,531 | | | | | | | | | | 2,405 | | | | | 2,405 | | | | | | | | | | 5.2 | | | | | 5.2 | | | | | 126 | | |
| | Local calls | | | | 991 | | | | | 991 | | | | | | | | | | 1,148 | | | | | 1,148 | | | | | | | | | | (13.7 | ) | | | | (13.7 | ) | | | | (157 | ) | |
| | PSTN value added services | | | | 188 | | | | | 188 | | | | | | | | | | 196 | | | | | 196 | | | | | | | | | | (4.1 | ) | | | | (4.1 | ) | | | | (8 | ) | |
| | National long distance calls | | | | 771 | | | | | 771 | | | | | | | | | | 856 | | | | | 856 | | | | | | | | | | (9.9 | ) | | | | (9.9 | ) | | | | (85 | ) | |
| | Fixed to mobile | | | | 1,184 | | | | | 1,184 | | | | | | | | | | 1,206 | | | | | 1,206 | | | | | | | | | | (1.8 | ) | | | | (1.8 | ) | | | | (22 | ) | |
| | International direct | | | | 180 | | | | | 180 | | | | | | | | | | 204 | | | | | 204 | | | | | | | | | | (11.8 | ) | | | | (11.8 | ) | | | | (24 | ) | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Total PSTN | | | | 5,845 | | | | | 5,845 | | | | | | | | | | 6,015 | | | | | 6,015 | | | | | | | | | | (2.8 | ) | | | | (2.8 | ) | | | | (170 | ) | |
| | Specialised Data | | | | 729 | | | | | 729 | | | | | | | | | | 774 | | | | | 774 | | | | | | | | | | (5.8 | ) | | | | (5.8 | ) | | | | (45 | ) | |
| | ISDN Products | | | | 671 | | | | | 671 | | | | | | | | | | 701 | | | | | 701 | | | | | | | | | | (4.3 | ) | | | | (4.3 | ) | | | | (30 | ) | |
| | Advertising and Directories | | | | 1,202 | | | | | 1,081 | | | | | | | | | | 1,006 | | | | | 998 | | | | | | | | | | 19.5 | | | | | 8.3 | | | | | 83 | | |
| | Intercarrier services | | | | 852 | | | | | 852 | | | | | | | | | | 829 | | | | | 829 | | | | | | | | | | 2.8 | | | | | 2.8 | | | | | 23 | | |
| | Solutions management | | | | 679 | | | | | 399 | | | | | | | | | | 364 | | | | | 364 | | | | | | | | | | 86.5 | | | | | 9.6 | | | | | 35 | | |
| | HK CSL | | | | 559 | | | | | 559 | | | | | | | | | | 544 | | | | | 544 | | | | | | | | | | 2.8 | | | | | 2.8 | | | | | 15 | | |
| | TelstraClear | | | | 462 | | | | | 462 | | | | | | | | | | 427 | | | | | 427 | | | | | | | | | | 8.2 | | | | | 8.2 | | | | | 35 | | |
| | Offshore Services Revenue | | | | 184 | | | | | 133 | | | | | | | | | | 85 | | | | | 85 | | | | | | | | | | 116.5 | | | | | 56.5 | | | | | 48 | | |
| | Inbound calling products | | | | 341 | | | | | 341 | | | | | | | | | | 357 | | | | | 357 | | | | | | | | | | (4.5 | ) | | | | (4.5 | ) | | | | (16 | ) | |
| | PayTV Bundling | | | | 192 | | | | | 192 | | | | | | | | | | 106 | | | | | 106 | | | | | | | | | | 81.1 | | | | | 81.1 | | | | | 86 | | |
| | Customer premises equipment | | | | 167 | | | | | 128 | | | | | | | | | | 138 | | | | | 138 | | | | | | | | | | 21.0 | | | | | (7.2 | ) | | | | (10 | ) | |
| | Payphones | | | | 92 | | | | | 92 | | | | | | | | | | 108 | | | | | 108 | | | | | | | | | | (14.8 | ) | | | | (14.8 | ) | | | | (16 | ) | |
| | Other sales & services | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Telstra Information & Connection Services | | | | 102 | | | | | 102 | | | | | | | | | | 93 | | | | | 93 | | | | | | | | | | 9.7 | | | | | 9.7 | | | | | 9 | | |
| | Card Services | | | | 45 | | | | | 45 | | | | | | | | | | 50 | | | | | 50 | | | | | | | | | | (10.0 | ) | | | | (10.0 | ) | | | | (5 | ) | |
| | Security products | | | | 39 | | | | | 39 | | | | | | | | | | 38 | | | | | 38 | | | | | | | | | | 2.6 | | | | | 2.6 | | | | | 1 | | |
| | Customnet & Spectrum | | | | 84 | | | | | 84 | | | | | | | | | | 84 | | | | | 84 | | | | | | | | | | 0.0 | | | | | 0.0 | | | | | 0 | | |
| | HFCCable TV | | | | 51 | | | | | 51 | | | | | | | | | | 35 | | | | | 35 | | | | | | | | | | 45.7 | | | | | 45.7 | | | | | 16 | | |
| | Commercial & Recoverable Works | | | | 44 | | | | | 44 | | | | | | | | | | 22 | | | | | 22 | | | | | | | | | | 100.0 | | | | | 100.0 | | | | | 22 | | |
| | External Construction | | | | 61 | | | | | 61 | | | | | | | | | | 47 | | | | | 47 | | | | | | | | | | 29.8 | | | | | 29.8 | | | | | 14 | | |
| | Other | | | | 142 | | | | | 140 | | | | | | | | | | 64 | | | | | 64 | | | | | | | | | | 121.9 | | | | | 118.8 | | | | | 76 | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Total Other sales & services | | | | 568 | | | | | 566 | | | | | | | | | | 433 | | | | | 433 | | | | | | | | | | 31.2 | | | | | 30.7 | | | | | 133 | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Total Sales revenue | | | | 16,615 | | | | | 16,122 | | | | | | | | | | 15,470 | | | | | 15,462 | | | | | | | | | | 7.4 | | | | | 4.3 | | | | | 660 | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Other revenue | | | | 288 | | | | | 120 | | | | | | | | | | 486 | | | | | 210 | | | | | | | | | | (40.7 | ) | | | | (42.9 | ) | | | | (90 | ) | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Total revenue | | | | 16,903 | | | | | 16,242 | | | | | | | | | | 15,956 | | | | | 15,672 | | | | | | | | | | 5.9 | | | | | 3.6 | | | | | 570 | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Domestic Sales Revenue | | | | 15,401 | | | | | 14,961 | | | | | | | | | | 14,400 | | | | | 14,392 | | | | | | | | | | 7.0 | | | | | 4.0 | | | | | 569 | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Selected Statistical Data | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Mobile voice telephone minutes | | | | | | | | | 5,045 | | | | | | | | | | | | | | | 4,565 | | | | | | | | | | | | | | | 10.5 | | | | | 480 | | |
| | Short Message Service (SMS) (number of messages) | | | | | | | | | 1,709 | | | | | | | | | | | | | | | 1,427 | | | | | | | | | | | | | | | 19.8 | | | | | 282 | | |
| | Mobile services in operation (thousands) | | | | | | | | | 8,059 | | | | | | | | | | | | | | | 7,169 | | | | | | | | | | | | | | | 12.4 | | | | | 890 | | |
| | Broadband Retail subscribers | | | | | | | | | 718 | | | | | | | | | | | | | | | 338 | | | | | | | | | | | | | | | 112.4 | | | | | 380 | | |
| | Broadband Wholesale subscribers | | | | | | | | | 761 | | | | | | | | | | | | | | | 281 | | | | | | | | | | | | | | | 170.8 | | | | | 480 | | |
| | Total Broadband subscribers (thousands) | | | | | | | | | 1,479 | | | | | | | | | | | | | | | 619 | | | | | | | | | | | | | | | 138.9 | | | | | 860 | | |
| | Narrowband subscribers (thousands) | | | | | | | | | 1,202 | | | | | | | | | | | | | | | 1,197 | | | | | | | | | | | | | | | 0.4 | | | | | 5 | | |
| | Basic access lines in service | | | | | | | | | 10.17 | | | | | | | | | | | | | | | 10.34 | | | | | | | | | | | | | | | (1.6 | ) | | | | (0.17 | ) | |
| | Local calls (number of calls) | | | | | | | | | 6,457 | | | | | | | | | | | | | | | 7,155 | | | | | | | | | | | | | | | (9.8 | ) | | | | (698 | ) | |
| | National long distance minutes | | | | | | | | | 5,868 | | | | | | | | | | | | | | | 6,471 | | | | | | | | | | | | | | | (9.3 | ) | | | | (603 | ) | |
| | Fixed to mobile minutes | | | | | | | | | 3,281 | | | | | | | | | | | | | | | 3,169 | | | | | | | | | | | | | | | 3.5 | | | | | 112 | | |
| | International direct minutes | | | | | | | | | 445 | | | | | | | | | | | | | | | 499 | | | | | | | | | | | | | | | (10.8 | ) | | | | (54 | ) | |
| | ISDN access (basic lines equivalents) (thousands) | | | | | | | | | 1,329 | | | | | | | | | | | | | | | 1,250 | | | | | | | | | | | | | | | 6.3 | | | | | 79 | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Footnotes: |
| |
| | | All percentages relate to growth on prior correspoinding period (PCP) |
| |
| | | Underlying excludes property and investment sales and the impact of Trading Post, KAZ Group, PSInet Group, Damovo and Universal Publishers acquisitions. |
| |
| | | Statistical data is represented in millions unless otherwise stated, and represents management’s best estimates. |
| |
| | | Refer to page 14 for product reconciliation details to align prior period comparative figures. |
Page 11
| | | |
 | Telstra Corporation Limited (ABN 033 051 775 556) | |
Quarterly Data
Quarter Ended 31 March 2005
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Q1 | | | QTR PCPii | | | | Q2 | | | QTR PCPii | | | | Half 1 | | | YTD PCPii | | | | Q3 | | | QTR PCPii | | | | Q3 YTD | | | QTR PCPii | | | | Q4 | | | QTR PCPii | | | | Full Year | | | YTD PCPii | | | | Q1 | | | QTR PCPii | | | | Q2 | | | | QTR PCPii | | | Half 1 | | | | YTD PCPii | | | Q3 | | | | QTR | | | YTD | | | | YTD PCPii | |
| Summary Underlying(I) Quarterly Data | | Sep-03 | | | Sep-03 | | | | Dec-03 | | | Dec-03 | | | | Dec-03 | | | Dec-03 | | | | Mar-04 | | | Mar-04 | | | | Mar-04 | | | Mar-04 | | | | Jun-04 | | | Jun-04 | | | | Jun-04 | | | Jun-04 | | | | Sep-04 | | | Sep-04 | | | | Dec-04 | | | | Dec-04 | | | Dec-04 | | | | Dec-04 | | | Mar-05 | | | | Mar-05 | | | Mar-05 | | | | Mar-05 | |
| |
Revenue | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Mobiles | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Mobile services | | | 848 | | | | 3.4 | % | | | | 893 | | | | 9.2 | % | | | | 1,740 | | | | 6.2 | % | | | | 853 | | | | 9.6 | % | | | | 2,594 | | | | 7.4 | % | | | | 877 | | | | 6.6 | % | | | | 3,470 | | | | 7.1 | % | | | | 928 | | | | 9.4 | % | | | | 968 | | | | | 8.4 | % | | | 1,896 | | | | | 9.0 | % | | | 918 | | | | | 7.6 | % | | | 2,814 | | | | | 8.5 | % |
| Mobile handsets | | | 97 | | | | 40.6 | % | | | | 89 | | | | (12.7 | %) | | | | 186 | | | | 8.1 | % | | | | 79 | | | | (24.0 | %) | | | | 265 | | | | (4.0 | %) | | | | 87 | | | | (20.9 | %) | | | | 352 | | | | (8.8 | %) | | | | 95 | | | | (2.1 | %) | | | | 103 | | | | | 15.7 | % | | | 198 | | | | | 6.5 | % | | | 85 | | | | | 7.6 | % | | | 283 | | | | | 6.8 | % |
| Total Mobiles | | | 945 | | | | 6.3 | % | | | | 982 | | | | 6.7 | % | | | | 1,926 | | | | 6.4 | % | | | | 932 | | | | 5.7 | % | | | | 2,859 | | | | 6.2 | % | | | | 964 | | | | 3.3 | % | | | | 3,822 | | | | 5.4 | % | | | | 1,023 | | | | 8.3 | % | | | | 1,071 | | | | | 9.1 | % | | | 2,094 | | | | | 8.7 | % | | | 1,003 | | | | | 7.6 | % | | | 3,097 | | | | | 8.3 | % |
| Internet and IP solutions | | | 237 | | | | 24.7 | % | | | | 231 | | | | 14.9 | % | | | | 468 | | | | 19.7 | % | | | | 255 | | | | 28.8 | % | | | | 724 | | | | 22.9 | % | | | | 289 | | | | 26.8 | % | | | | 1,013 | | | | 24.0 | % | | | | 310 | | | | 30.8 | % | | | | 314 | | | | | 35.9 | % | | | 624 | | | | | 33.3 | % | | | 351 | | | | | 37.6 | % | | | 975 | | | | | 34.7 | % |
PSTN products | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Basic access | | | 791 | | | | 3.4 | % | | | | 819 | | | | 3.5 | % | | | | 1,610 | | | | 3.5 | % | | | | 795 | | | | 2.2 | % | | | | 2,405 | | | | 3.0 | % | | | | 832 | | | | 11.2 | % | | | | 3,237 | | | | 5.0 | % | | | | 853 | | | | 7.8 | % | | | | 847 | | | | | 3.4 | % | | | 1,700 | | | | | 5.6 | % | | | 831 | | | | | 4.5 | % | | | 2,531 | | | | | 5.2 | % |
| Local calls | | | 394 | | | | (0.8 | %) | | | | 384 | | | | (3.8 | %) | | | | 778 | | | | (2.3 | %) | | | | 370 | | | | (3.6 | %) | | | | 1,148 | | | | (2.7 | %) | | | | 356 | | | | (8.0 | %) | | | | 1,504 | | | | (4.0 | %) | | | | 354 | | | | (10.2 | %) | | | | 335 | | | | | (12.8 | %) | | | 689 | | | | | (11.4 | %) | | | 302 | | | | | (18.4 | %) | | | 991 | | | | | (13.7 | %) |
| PSTN value added services | | | 68 | | | | 0.0 | % | | | | 66 | | | | (10.8 | %) | | | | 134 | | | | (5.0 | %) | | | | 62 | | | | (12.7 | %) | | | | 196 | | | | (7.5 | %) | | | | 63 | | | | (7.4 | %) | | | | 259 | | | | (7.5 | %) | | | | 63 | | | | (7.4 | %) | | | | 63 | | | | | (4.5 | %) | | | 126 | | | | | (6.0 | %) | | | 62 | | | | | 0.0 | % | | | 188 | | | | | (4.1 | %) |
| National long distance calls | | | 292 | | | | 2.5 | % | | | | 286 | | | | (4.0 | %) | | | | 578 | | | | (0.7 | %) | | | | 278 | | | | (3.5 | %) | | | | 856 | | | | (1.6 | %) | | | | 265 | | | | (9.2 | %) | | | | 1,121 | | | | (3.5 | %) | | | | 265 | | | | (9.2 | %) | | | | 262 | | | | | (8.4 | %) | | | 527 | | | | | (8.8 | %) | | | 244 | | | | | (12.2 | %) | | | 771 | | | | | (9.9 | %) |
| Fixed to mobile | | | 402 | | | | 8.4 | % | | | | 407 | | | | 6.5 | % | | | | 808 | | | | 7.3 | % | | | | 398 | | | | 6.1 | % | | | | 1,206 | | | | 6.9 | % | | | | 391 | | | | 0.5 | % | | | | 1,597 | | | | 5.3 | % | | | | 399 | | | | (0.7 | %) | | | | 407 | | | | | 0.0 | % | | | 806 | | | | | (0.2 | %) | | | 378 | | | | | (5.0 | %) | | | 1,184 | | | | | (1.8 | %) |
| International direct | | | 68 | | | | (15.0 | %) | | | | 71 | | | | (12.3 | %) | | | | 139 | | | | (13.7 | %) | | | | 65 | | | | (11.0 | %) | | | | 204 | | | | (13.2 | %) | | | | 62 | | | | (12.7 | %) | | | | 266 | | | | (13.4 | %) | | | | 61 | | | | (10.3 | %) | | | | 63 | | | | | (11.3 | %) | | | 124 | | | | | (10.8 | %) | | | 56 | | | | | (13.8 | %) | | | 180 | | | | | (11.8 | %) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total PSTN products | | | 2,015 | | | | 2.5 | % | | | | 2,033 | | | | 0.4 | % | | | | 4,047 | | | | 1.5 | % | | | | 1,968 | | | | 0.0 | % | | | | 6,015 | | | | 0.9 | % | | | | 1,969 | | | | 0.7 | % | | | | 7,984 | | | | 0.9 | % | | | | 1,995 | | | | (1.0 | %) | | | | 1,977 | | | | | (2.8 | %) | | | 3,972 | | | | | (1.9 | %) | | | 1,873 | | | | | (4.8 | %) | | | 5,845 | | | | | (2.8 | %) |
Data and Internet | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Specialised Data | | | 264 | | | | (2.9 | %) | | | | 253 | | | | (7.3 | %) | | | | 517 | | | | (5.1 | %) | | | | 258 | | | | (5.1 | %) | | | | 774 | | | | (5.3 | %) | | | | 260 | | | | (7.5 | %) | | | | 1,035 | | | | (5.7 | %) | | | | 246 | | | | (6.8 | %) | | | | 249 | | | | | (1.6 | %) | | | 495 | | | | | (4.1 | %) | | | 234 | | | | | (9.3 | %) | | | 729 | | | | | (5.8 | %) |
| ISDN Products | | | 239 | | | | (3.6 | %) | | | | 234 | | | | (2.9 | %) | | | | 473 | | | | (3.3 | %) | | | | 229 | | | | 1.8 | % | | | | 701 | | | | (1.8 | %) | | | | 225 | | | | (1.3 | %) | | | | 927 | | | | (1.6 | %) | | | | 231 | | | | (3.3 | %) | | | | 222 | | | | | (5.1 | %) | | | 453 | | | | | (4.2 | %) | | | 218 | | | | | (4.8 | %) | | | 671 | | | | | (4.3 | %) |
| Advertising and Directories | | | 182 | | | | 7.7 | % | | | | 581 | | | | 3.4 | % | | | | 764 | | | | 4.5 | % | | | | 234 | | | | 9.3 | % | | | | 998 | | | | 5.7 | % | | | | 301 | | | | 10.3 | % | | | | 1,298 | | | | 6.7 | % | | | | 213 | | | | 17.0 | % | | | | 599 | | | | | 3.1 | % | | | 812 | | | | | 6.3 | % | | | 269 | | | | | 15.0 | % | | | 1,081 | | | | | 8.3 | % |
| Intercarrier services | | | 278 | | | | (6.1 | %) | | | | 284 | | | | (0.7 | %) | | | | 563 | | | | (3.3 | %) | | | | 266 | | | | (2.9 | %) | | | | 829 | | | | (3.2 | %) | | | | 274 | | | | (2.1 | %) | | | | 1,103 | | | | (2.9 | %) | | | | 277 | | | | (0.4 | %) | | | | 303 | | | | | 6.7 | % | | | 580 | | | | | 3.0 | % | | | 272 | | | | | 2.3 | % | | | 852 | | | | | 2.8 | % |
| Solutions management | | | 129 | | | | 13.2 | % | | | | 113 | | | | (9.6 | %) | | | | 243 | | | | 1.7 | % | | | | 121 | | | | 7.1 | % | | | | 364 | | | | 3.4 | % | | | | 144 | | | | 6.7 | % | | | | 508 | | | | 4.3 | % | | | | 140 | | | | 8.5 | % | | | | 130 | | | | | 15.0 | % | | | 270 | | | | | 11.1 | % | | | 129 | | | | | 6.6 | % | | | 399 | | | | | 9.6 | % |
| Hong Kong CSL | | | 191 | | | | (21.7 | %) | | | | 186 | | | | (22.5 | %) | | | | 377 | | | | (22.1 | %) | | | | 167 | | | | (31.3 | %) | | | | 544 | | | | (25.2 | %) | | | | 182 | | | | 0.6 | % | | | | 726 | | | | (20.0 | %) | | | | 188 | | | | (1.6 | %) | | | | 192 | | | | | 3.2 | % | | | 380 | | | | | 0.8 | % | | | 179 | | | | | 7.2 | % | | | 559 | | | | | 2.8 | % |
| TelstraClear | | | 142 | | | | 2.9 | % | | | | 140 | | | | 3.7 | % | | | | 282 | | | | 3.3 | % | | | | 144 | | | | 2.1 | % | | | | 427 | | | | 3.1 | % | | | | 148 | | | | 10.4 | % | | | | 574 | | | | 4.7 | % | | | | 152 | | | | 7.0 | % | | | | 152 | | | | | 8.6 | % | | | 304 | | | | | 7.8 | % | | | 158 | | | | | 9.7 | % | | | 462 | | | | | 8.2 | % |
| Offshore Services Revenue | | | 18 | | | | (21.7 | %) | | | | 31 | | | | 106.7 | % | | | | 48 | | | | 26.3 | % | | | | 37 | | | | 117.6 | % | | | | 85 | | | | | | | | | 45 | | | | 400.0 | % | | | | 130 | | | | 103.1 | % | | | | 46 | | | | 155.6 | % | | | | 43 | | | | | 38.7 | % | | | 89 | | | | | 85.4 | % | | | 44 | | | | | 18.9 | % | | | 133 | | | | | 56.5 | % |
| Inbound calling products | | | 119 | | | | (5.6 | %) | | | | 119 | | | | (4.0 | %) | | | | 238 | | | | (4.8 | %) | | | | 120 | | | | (1.6 | %) | | | | 357 | | | | (4.0 | %) | | | | 118 | | | | (3.3 | %) | | | | 476 | | | | (3.6 | %) | | | | 117 | | | | (1.7 | %) | | | | 114 | | | | | (4.2 | %) | | | 231 | | | | | (2.9 | %) | | | 110 | | | | | (8.3 | %) | | | 341 | | | | | (4.5 | %) |
| PayTV | | | 29 | | | NA | | | | 35 | | | NA | | | | 65 | | | NA | | | | 41 | | | | 583.3 | % | | | | 106 | | | | | | | | | 48 | | | | 182.4 | % | | | | 154 | | | | 569.6 | % | | | | 57 | | | | 96.6 | % | | | | 64 | | | | | 82.9 | % | | | 121 | | | | | 86.2 | % | | | 71 | | | | | 73.2 | % | | | 192 | | | | | 81.1 | % |
| Customer premises equipment | | | 46 | | | | (6.1 | %) | | | | 46 | | | | (9.8 | %) | | | | 92 | | | | (8.0 | %) | | | | 47 | | | | (4.1 | %) | | | | 138 | | | | (7.4 | %) | | | | 45 | | | | 0.0 | % | | | | 184 | | | | (5.2 | %) | | | | 42 | | | | (8.7 | %) | | | | 45 | | | | | (2.2 | %) | | | 87 | | | | | (5.4 | %) | | | 41 | | | | | (12.8 | %) | | | 128 | | | | | (7.2 | %) |
| Payphones | | | 36 | | | | (2.7 | %) | | | | 37 | | | | (2.6 | %) | | | | 72 | | | | (4.0 | %) | | | | 36 | | | | (5.3 | %) | | | | 108 | | | | (4.4 | %) | | | | 33 | | | | (5.7 | %) | | | | 141 | | | | (4.7 | %) | | | | 31 | | | | (13.9 | %) | | | | 32 | | | | | (13.5 | %) | | | 63 | | | | | (12.5 | %) | | | 29 | | | | | (19.4 | %) | | | 92 | | | | | (14.8 | %) |
| Other sales & service | | | 162 | | | | (33.6 | %) | | | | 119 | | | | (47.3 | %) | | | | 281 | | | | (40.2 | %) | | | | 151 | | | | (25.2 | %) | | | | 433 | | | | (35.7 | %) | | | | 186 | | | | (9.7 | %) | | | | 618 | | | | (29.6 | %) | | | | 176 | | | | 9.3 | % | | | | 202 | | | | | 71.2 | % | | | 378 | | | | | 34.0 | % | | | 188 | | | | | 24.5 | % | | | 566 | | | | | 30.7 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Sales revenue | | | 5,032 | | | | 0.5 | % | | | | 5,424 | | | | (0.7 | %) | | | | 10,456 | | | | (0.1 | %) | | | | 5,006 | | | | 0.8 | % | | | | 15,462 | | | | 0.2 | % | | | | 5,231 | | | | 3.3 | % | | | | 20,693 | | | | 1.0 | % | | | | 5,244 | | | | 4.2 | % | | | | 5,709 | | | | | 5.3 | % | | | 10,953 | | | | | 4.8 | % | | | 5,169 | | | | | 3.3 | % | | | 16,122 | | | | | 4.3 | % |
| Other revenue | | | 52 | | | | (3.7 | %) | | | | 42 | | | | (26.3 | %) | | | | 94 | | | | (15.3 | %) | | | | 55 | | | | 17.0 | % | | | | 149 | | | | (5.7 | %) | | | | 64 | | | | (38.5 | %) | | | | 213 | | | | (18.7 | %) | | | | 37 | | | | (65.1 | %) | | | | 44 | | | | | 4.8 | % | | | 81 | | | | | (45.6 | %) | | | 39 | | | | | (36.1 | %) | | | 120 | | | | | (42.9 | %) |
Total revenue | | | 5,084 | | | | 0.5 | % | | | | 5,466 | | | | (1.0 | %) | | | | 10,550 | | | | (0.3 | %) | | | | 5,061 | | | | 1.0 | % | | | | 15,611 | | | | 0.1 | % | | | | 5,295 | | | | 2.5 | % | | | | 20,906 | | | | 0.7 | % | | | | 5,281 | | | | 2.8 | % | | | | 5,753 | | | | | 5.3 | % | | | 11,034 | | | | | 4.0 | % | | | 5,208 | | | | | 2.8 | % | | | 16,242 | | | | | 3.6 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Selected statistical dataiv | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Mobile voice telephone minutes | | | 1,473 | | | | 15.9 | % | | | | 1,538 | | | | 16.2 | % | | | | 3,011 | | | | 16.1 | % | | | | 1,554 | | | | 20.6 | % | | | | 4,565 | | | | 17.6 | % | | | | 1,580 | | | | 15.2 | % | | | | 6,145 | | | | 16.9 | % | | | | 1,678 | | | | 13.9 | % | | | | 1,726 | | | | | 12.2 | % | | | 3,404 | | | | | 13.1 | % | | | 1,641 | | | | | 5.6 | % | | | 5,045 | | | | | 10.5 | % |
Short Message Service (SMS) (number of messages)(vii) | | | 439 | | | | 50.5 | % | | | | 488 | | | | 41.5 | % | | | | 928 | | | | 45.6 | % | | | | 499 | | | | 30.1 | % | | | | 1,427 | | | | 39.8 | % | | | | 518 | | | | 27.6 | % | | | | 1,944 | | | | 36.3 | % | | | | 558 | | | | 27.1 | % | | | | 583 | | | | | 19.4 | % | | | 1,142 | | | | | 23.1 | % | | | 567 | | | | | 13.6 | % | | | 1,709 | | | | | 19.8 | % |
Mobile services in operation (thousands)iii | | | 6,720 | | | | 14.2 | % | | | | 6,985 | | | | 14.5 | % | | | | 6,985 | | | | 14.5 | % | | | | 7,169 | | | | 13.1 | % | | | | 7,169 | | | | 13.1 | % | | | | 7,604 | | | | 15.8 | % | | | | 7,604 | | | | 15.8 | % | | | | 7,665 | | | | 14.1 | % | | | | 7,983 | | | | | 14.3 | % | | | 7,983 | | | | | 14.3 | % | | | 8,059 | | | | | 12.4 | % | | | 8,059 | | | | | 12.4 | % |
| Broadband Retail subscribers | | | 267 | | | | 57.8 | % | | | | 288 | | | | 53.4 | % | | | | 288 | | | | 53.4 | % | | | | 338 | | | | 61.1 | % | | | | 338 | | | | 61.1 | % | | | | 427 | | | | 77.8 | % | | | | 427 | | | | 77.8 | % | | | | 537 | | | | 100.9 | % | | | | 622 | | | | | 116.2 | % | | | 622 | | | | | 116.2 | % | | | 718 | | | | | 112.4 | % | | | 718 | | | | | 112.4 | % |
| Broadband Wholesale subscribers | | | 172 | | | | 362.5 | % | | | | 220 | | | | 288.9 | % | | | | 220 | | | | 289.0 | % | | | | 281 | | | | 250.5 | % | | | | 281 | | | | 250.5 | % | | | | 379 | | | | 213.4 | % | | | | 379 | | | | 213.4 | % | | | | 495 | | | | 188.6 | % | | | | 611 | | | | | 177.8 | % | | | 611 | | | | | 177.7 | % | | | 761 | | | | | 170.8 | % | | | 761 | | | | | 170.8 | % |
Total Broadband subscribers (thousands)(vi) | | | 439 | | | | 112.6 | % | | | | 508 | | | | 107.8 | % | | | | 508 | | | | 107.8 | % | | | | 619 | | | | 113.5 | % | | | | 619 | | | | 113.5 | % | | | | 806 | | | | 123.2 | % | | | | 806 | | | | 123.2 | % | | | | 1,032 | | | | 135.1 | % | | | | 1,233 | | | | | 142.9 | % | | | 1,233 | | | | | 142.9 | % | | | 1,479 | | | | | 138.9 | % | | | 1,479 | | | | | 138.9 | % |
| Narrowband subscribers (thousands) | | | 1,180 | | | | 8.9 | % | | | | 1,178 | | | | 6.8 | % | | | | 1,178 | | | | 6.8 | % | | | | 1,197 | | | | 5.6 | % | | | | 1,197 | | | | 5.6 | % | | | | 1,194 | | | | 3.1 | % | | | | 1,194 | | | | 3.1 | % | | | | 1,209 | | | | 2.4 | % | | | | 1,201 | | | | | 1.9 | % | | | 1,201 | | | | | 2.0 | % | | | 1,202 | | | | | 0.4 | % | | | 1,202 | | | | | 0.4 | % |
- Retail(v) | | | 8.71 | | | | (3.9 | %) | | | | 8.64 | | | | (3.8 | %) | | | | 8.64 | | | | (3.8 | %) | | | | 8.58 | | | | (3.9 | %) | | | | 8.58 | | | | (3.9 | %) | | | | 8.44 | | | | (4.3 | %) | | | | 8.44 | | | | (4.3 | %) | | | | 8.34 | | | | (4.2 | %) | | | | 8.21 | | | | | (4.9 | %) | | | 8.21 | | | | | (5.0 | %) | | | 8.13 | | | | | (5.2 | %) | | | 8.13 | | | | | (5.2 | %) |
| - Wholesale | | | 1.64 | | | | 20.5 | % | | | | 1.71 | | | | 22.1 | % | | | | 1.71 | | | | 22.1 | % | | | | 1.76 | | | | 21.1 | % | | | | 1.76 | | | | 21.1 | % | | | | 1.84 | | | | 18.4 | % | | | | 1.84 | | | | 18.4 | % | | | | 1.91 | | | | 16.1 | % | | | | 1.98 | | | | | 15.8 | % | | | 1.98 | | | | | 15.8 | % | | | 2.04 | | | | | 15.9 | % | | | 2.04 | | | | | 15.9 | % |
| Basic access lines in service | | | 10.35 | | | | (0.7 | %) | | | | 10.35 | | | | (0.3 | %) | | | | 10.35 | | | | (0.3 | %) | | | | 10.34 | | | | (0.4 | %) | | | | 10.34 | | | | (0.4 | %) | | | | 10.28 | | | | (0.8 | %) | | | | 10.28 | | | | (0.8 | %) | | | | 10.25 | | | | (0.9 | %) | | | | 10.19 | | | | | (1.5 | %) | | | 10.19 | | | | | (1.5 | %) | | | 10.17 | | | | | (1.6 | %) | | | 10.17 | | | | | (1.6 | %) |
| Local calls (number of calls) | | | 2,435 | | | | (3.7 | %) | | | | 2,396 | | | | (3.8 | %) | | | | 4,831 | | | | (3.7 | %) | | | | 2,324 | | | | (3.0 | %) | | | | 7,155 | | | | (3.5 | %) | | | | 2,242 | | | | (5.8 | %) | | | | 9,397 | | | | (4.0 | %) | | | | 2,233 | | | | (8.3 | %) | | | | 2,179 | | | | | (9.1 | %) | | | 4,412 | | | | | (8.7 | %) | | | 2,045 | | | | | (12.0 | %) | | | 6,457 | | | | | (9.8 | %) |
| National long distance minutes | | | 2,193 | | | | (6.5 | %) | | | | 2,150 | | | | (6.9 | %) | | | | 4,343 | | | | (6.7 | %) | | | | 2,128 | | | | (6.6 | %) | | | | 6,471 | | | | (6.7 | %) | | | | 2,049 | | | | (8.0 | %) | | | | 8,520 | | | | (7.0 | %) | | | | 2,002 | | | | (8.7 | %) | | | | 1,975 | | | | | (8.1 | %) | | | 3,977 | | | | | (8.4 | %) | | | 1,890 | | | | | (11.2 | %) | | | 5,868 | | | | | (9.3 | %) |
| Fixed to mobile minutes | | | 1,041 | | | | 7.3 | % | | | | 1,058 | | | | 7.5 | % | | | | 2,099 | | | | 7.4 | % | | | | 1,070 | | | | 8.1 | % | | | | 3,169 | | | | 7.6 | % | | | | 1,057 | | | | 5.8 | % | | | | 4,226 | | | | 7.1 | % | | | | 1,096 | | | | 5.3 | % | | | | 1,110 | | | | | 4.9 | % | | | 2,206 | | | | | 5.1 | % | | | 1,075 | | | | | 0.5 | % | | | 3,281 | | | | | 3.5 | % |
| International direct minutes | | | 165 | | | | (13.4 | %) | | | | 173 | | | | (11.9 | %) | | | | 338 | | | | (12.7 | %) | | | | 161 | | | | (10.7 | %) | | | | 499 | | | | (12.0 | %) | | | | 152 | | | | (11.8 | %) | | | | 651 | | | | (12.0 | %) | | | | 149 | | | | (9.8 | %) | | | | 155 | | | | | (10.2 | %) | | | 304 | | | | | (10.1 | %) | | | 141 | | | | | (12.4 | %) | | | 445 | | | | | (10.8 | %) |
| ISDN access (basic lines equivalents) (thousands) | | | 1,210 | | | | (1.2 | %) | | | | 1,224 | | | | 2.9 | % | | | | 1,224 | | | | 2.8 | % | | | | 1,250 | | | | 4.2 | % | | | | 1,250 | | | | 4.2 | % | | | | 1,288 | | | | 6.2 | % | | | | 1,288 | | | | 6.2 | % | | | | 1,305 | | | | 7.8 | % | | | | 1,318 | | | | | 7.7 | % | | | 1,318 | | | | | 7.7 | % | | | 1,329 | | | | | 6.3 | % | | | 1,329 | | | | | 6.3 | % |
| Pay TV bundling | | | 177 | | | | N/M | | | | | 208 | | | | N/M | | | | | 208 | | | | N/M | | | | | 231 | | | | N/M | | | | | 231 | | | | N/M | | | | | 258 | | | | 103.1 | % | | | | 258 | | | | 103.1 | % | | | | 289 | | | | 63.1 | % | | | | 309 | | | | | 48.6 | % | | | 309 | | | | | 48.6 | % | | | 325 | | | | | 40.7 | % | | | 325 | | | | | 40.7 | % |
| | | Footnotes: |
| |
| (i) | | Fiscal 2004/2005 and its comparative year exclude Trading Post, Kaz Group, PSInet Group, Damovo and Universal Fiscal 2003/2004 and its comparative year exclude Trading Post and asset sales. |
| |
| (ii) | | All percentages relate to growth on prior corresponding period. |
| |
| (iii) | | Mobile Services in Operation(SIOs) are net of deactivated prepaid customers who were outside the recharge only period and reflects recent changes in deactivation policy in Q4 2003/2004. |
| |
| (iv) | | Statistical data is represented in millions unless otherwise stated. |
| |
| (v) | | Retail basic access lines in service have been restated to exclude between 105,000 and 84,000 incontact services. The current period has anexclusion of 85,000 incontact services . |
| |
| (vi) | | Broadband subscriber numbers for 03/04 and 04/05 have been restated to include up to 5000 business subscribers previously overlooked in error. |
| |
| (vii) | | SMS numbers have been restated for 02/03, 03/04 and 04/05 to include up to 20 million messages per quarter of business access manager and online sms previously excluded in error. |
Page 12
| | | |
| Telstra Corporation Limited (ABN 033 051 775 556)
Normalisation Schedule
Year Ended 31 March 2005 | |
This schedule details the adjustments made to the reported results for the nine months ending 31 March 2005 and 2004 to arrive at the underlying business performance.
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| $m | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | Asset / | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Asset / | | | | | | | | | | | | | | | | | Reported | | | | Underlying | | | | | |
| | | | March 04/05 | | | | Investment | | | | | | | | | | | | | | | | | | | Universal | | | Total | | | | March 04/05 | | | | March 03/04 | | | | Investment | | | | | | | Total | | | | March 03/04 | | | | Growth | | | | Growth | | | | Underlying | |
| Fixed to mobile | | | Reported | | | | Sales | | | Trading Post | | | KAZ | | | PSINet | | | Damovo | | | Publishing | | | Adjust. | | | | Underlying | | | | Reported | | | | Sales | | | Trading Post | | | Adjust. | | | | Underlying | | | | % | | | | % | | | | M/ment | |
| Mobiles | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Mobile services | | | | 2,814 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 0 | | | | | 2,814 | | | | | 2,594 | | | | | | | | | | | | | 0 | | | | | 2,594 | | | | | 8.5 | % | | | | 8.5 | % | | | | 220 | |
| Mobile handsets | | | | 283 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 0 | | | | | 283 | | | | | 265 | | | | | | | | | | | | | 0 | | | | | 265 | | | | | 6.8 | % | | | | 6.8 | % | | | | 18 | |
| | | | | | | | | | | | | | | | | |
| Total Mobiles | | | | 3,097 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 0 | | | | | 3,097 | | | | | 2,859 | | | | | | | | | | | | | 0 | | | | | 2,859 | | | | | 8.3 | % | | | | 8.3 | % | | | | 238 | |
| Internet and IP solutions | | | | 975 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 0 | | | | | 975 | | | | | 724 | | | | | | | | | | | | | 0 | | | | | 724 | | | | | 34.7 | % | | | | 34.7 | % | | | | 251 | |
| PSTN Products | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Basic access | | | | 2,531 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 0 | | | | | 2,531 | | | | | 2,405 | | | | | | | | | | | | | 0 | | | | | 2,405 | | | | | 5.2 | % | | | | 5.2 | % | | | | 126 | |
| Local calls | | | | 991 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 0 | | | | | 991 | | | | | 1,148 | | | | | | | | | | | | | 0 | | | | | 1,148 | | | | | (13.7 | %) | | | | (13.7 | %) | | | | (157 | ) |
| PSTN value added services | | | | 188 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 0 | | | | | 188 | | | | | 196 | | | | | | | | | | | | | 0 | | | | | 196 | | | | | (4.1 | %) | | | | (4.1 | %) | | | | (8 | ) |
| National long distance calls | | | | 771 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 0 | | | | | 771 | | | | | 856 | | | | | | | | | | | | | 0 | | | | | 856 | | | | | (9.9 | %) | | | | (9.9 | %) | | | | (85 | ) |
| Fixed to mobile | | | | 1,184 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 0 | | | | | 1,184 | | | | | 1,206 | | | | | | | | | | | | | 0 | | | | | 1,206 | | | | | (1.8 | %) | | | | (1.8 | %) | | | | (22 | ) |
| International direct | | | | 180 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 0 | | | | | 180 | | | | | 204 | | | | | | | | | | | | | 0 | | | | | 204 | | | | | (11.8 | %) | | | | (11.8 | %) | | | | (24 | ) |
| | | | | | | | | | | | | | | | | |
| Total PSTN | | | | 5,845 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 0 | | | | | 5,845 | | | | | 6,015 | | | | | | | | | | | | | 0 | | | | | 6,015 | | | | | (2.8 | %) | | | | (2.8 | %) | | | | (170 | ) |
| Specialised Data | | | | 729 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 0 | | | | | 729 | | | | | 774 | | | | | | | | | | | | | 0 | | | | | 774 | | | | | (5.8 | %) | | | | (5.8 | %) | | | | (45 | ) |
| ISDN (Access and calls) | | | | 671 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 0 | | | | | 671 | | | | | 701 | | | | | | | | | | | | | 0 | | | | | 701 | | | | | (4.3 | %) | | | | (4.3 | %) | | | | (30 | ) |
| Advertising and Directories | | | | 1,202 | | | | | | | | | (113 | ) | | | | | | | | | | | | | | | (8 | ) | | | (121 | ) | | | | 1,081 | | | | | 1,006 | | | | | | | | | (8 | ) | | | (8 | ) | | | | 998 | | | | | 19.5 | % | | | | 8.3 | % | | | | 83 | |
| Intercarrier services | | | | 852 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 0 | | | | | 852 | | | | | 829 | | | | | | | | | | | | | 0 | | | | | 829 | | | | | 2.8 | % | | | | 2.8 | % | | | | 23 | |
| Solutions management | | | | 679 | | | | | | | | | | | | | (272 | ) | | | | | | | (8 | ) | | | | | | | (280 | ) | | | | 399 | | | | | 364 | | | | | | | | | | | | | 0 | | | | | 364 | | | | | 86.5 | % | | | | 9.6 | % | | | | 35 | |
| HK CSL | | | | 559 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 0 | | | | | 559 | | | | | 544 | | | | | | | | | | | | | 0 | | | | | 544 | | | | | 2.8 | % | | | | 2.8 | % | | | | 15 | |
| Telstra Clear | | | | 462 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 0 | | | | | 462 | | | | | 427 | | | | | | | | | | | | | 0 | | | | | 427 | | | | | 8.2 | % | | | | 8.2 | % | | | | 35 | |
| Offshore Revenue | | | | 184 | | | | | | | | | | | | | | | | | (51 | ) | | | | | | | | | | | (51 | ) | | | | 133 | | | | | 85 | | | | | | | | | | | | | 0 | | | | | 85 | | | | | 116.5 | % | | | | 56.5 | % | | | | 48 | |
| Inbound calling products | | | | 341 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 0 | | | | | 341 | | | | | 357 | | | | | | | | | | | | | 0 | | | | | 357 | | | | | (4.5 | %) | | | | (4.5 | %) | | | | (16 | ) |
| PayTV | | | | 192 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 0 | | | | | 192 | | | | | 106 | | | | | | | | | | | | | 0 | | | | | 106 | | | | | 81.1 | % | | | | 81.1 | % | | | | 86 | |
| Customer premises equipment | | | | 167 | | | | | | | | | | | | | | | | | | | | | (39 | ) | | | | | | | (39 | ) | | | | 128 | | | | | 138 | | | | | | | | | | | | | 0 | | | | | 138 | | | | | 21.0 | % | | | | (7.2 | %) | | | | (10 | ) |
| Payphones | | | | 92 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 0 | | | | | 92 | | | | | 108 | | | | | | | | | | | | | 0 | | | | | 108 | | | | | (14.8 | %) | | | | (14.8 | %) | | | | (16 | ) |
| Other sales & service | | | | 568 | | | | | | | | | | | | | (2 | ) | | | 0 | | | | 0 | | | | | | | | (2 | ) | | | | 566 | | | | | 433 | | | | | | | | | | | | | 0 | | | | | 433 | | | | | 31.2 | % | | | | 30.7 | % | | | | 133 | |
| | | | | | | | | | | | | | | | | |
Sales revenue | | | | 16,615 | | | | | 0 | | | | (113 | ) | | | (273 | ) | | | (51 | ) | | | (48 | ) | | | (8 | ) | | | (493 | ) | | | | 16,122 | | | | | 15,470 | | | | | 0 | | | | (8 | ) | | | (8 | ) | | | | 15,462 | | | | | 7.4 | % | | | | 4.3 | % | | | | 660 | |
Other revenue | | | | 288 | | | | | (168 | ) | | | 0 | | | | 0 | | | | 0 | | | | 0 | | | | 0 | | | | (168 | ) | | | | 120 | | | | | 486 | | | | | (276 | ) | | | 0 | | | | (276 | ) | | | | 210 | | | | | (40.7 | %) | | | | (42.9 | %) | | | | (90 | ) |
| | | | | | | | | | | | | | | | | |
Total revenue | | | | 16,903 | | | | | (168 | ) | | | (113 | ) | | | (273 | ) | | | (51 | ) | | | (48 | ) | | | (8 | ) | | | (661 | ) | | | | 16,242 | | | | | 15,956 | | | | | (276 | ) | | | (8 | ) | | | (284 | ) | | | | 15,672 | | | | | 5.9 | % | | | | 3.6 | % | | | | 570 | |
Page 13
| | | |
| Telstra Corporation Limited (ABN 033 051 775 556)
Product reconciliation to align comparative figures with the reported format
Nine Months Ended 31 March 2005 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | Reported | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | previously | | | | Reported | | | | | | | | | | | | | | | | | | | | | | | |
| | | | released | | | | New Hierarchy | | | | | | | | | | | | | | | | | | | | | | | |
| | | | Mar-04 | | | | Mar-04 | | | | Movement | | | | | | | | | Amount | | | | | | | | | Amount | |
| | | | $m | | | | $m | | | | $m | | | | Included | | | | $m | | | | Excluded | | | | $m | |
| | | | | | | | | | | | | | | | | | | | | | |
| Mobile services | | | | 2,583 | | | | | 2,594 | | | | | 11 | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
| Mobile handsets | | | | 265 | | | | | 265 | | | | | — | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
| Total Mobiles | | | | 2,848 | | | | | 2,859 | | | | | 11 | | | | CDMA Wholesale Domestic Resale | | | | 11 | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
| Internet and IP solutions | | | | 713 | | | | | 724 | | | | | 11 | | | | Wholesale Access Other (incl HDSL) | | | | 10 | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | Wholesale Internet and Data Other | | | | 1 | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
| PSTN products | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
| Basic access | | | | 2,405 | | | | | 2,405 | | | | | — | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
| Local calls | | | | 1,148 | | | | | 1,148 | | | | | — | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
| PSTN value added services | | | | 196 | | | | | 196 | | | | | — | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
| National long distance calls | | | | 856 | | | | | 856 | | | | | — | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
| Fixed to mobile | | | | 1,206 | | | | | 1,206 | | | | | — | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
| International direct | | | | 204 | | | | | 204 | | | | | — | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
| Total PSTN products | | | | 6,015 | | | | | 6,015 | | | | | — | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
| Specialised Data | | | | 762 | | | | | 774 | | | | | 12 | | | | Wholesale ATM | | | | 12 | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
| ISDN Products | | | | 698 | | | | | 701 | | | | | 3 | | | | | | | | | | | | | | Microlink Rental Semi Permanent Circuits | | | | (3 | ) |
| | | | | | | | | | | | | | | | | | | | | | |
| Advertising and Directories | | | | 1,014 | | | | | 1,006 | | | | | (8 | ) | | | | | | | | | | | | | Yellow Pages Direct | | | | 8 | |
| | | | | | | | | | | | | | | | | | | | | | |
| Intercarrier services | | | | 863 | | | | | 829 | | | | | (34 | ) | | | | | | | | | | | | | Wholesale ATM | | | | 12 | |
| | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | CDMA Wholesale Domestic Resale | | | | 11 | |
| | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | Wholesale Access Other (incl HDSL) | | | | 10 | |
| | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | Wholesale Internet and Data Other | | | | 1 | |
| | | | | | | | | | | | | | | | | | | | | | |
| Solutions management | | | | 350 | | | | | 364 | | | | | 14 | | | | eBusiness Solutions | | | | 14 | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
| Hong Kong CSL | | | | 544 | | | | | 544 | | | | | — | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
| TelstraClear | | | | 427 | | | | | 427 | | | | | — | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
| Various controlled entities (excluding HK CSL & TClear) | | | | 134 | | | | | — | | | | | (134 | ) | | | | | | | | | | | | | Offshore services revenue | | | | 85 | |
| | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | HFC Cable TV | | | | 35 | |
| | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | eBusiness Solutions | | | | 14 | |
| | | | | | | | | | | | | | | | | | | | | | |
| Offshore services revenue | | | | — | | | | | 85 | | | | | 85 | | | | Offshore services revenue | | | | 85 | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
| Inbound calling products | | | | 357 | | | | | 357 | | | | | — | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
| Pay TV bundling | | | | — | | | | | 106 | | | | | 106 | | | | Pay TV Bundling | | | | 106 | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
| Customer premises equipment | | | | 138 | | | | | 138 | | | | | — | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
| Payphones | | | | 108 | | | | | 108 | | | | | — | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
| Other sales & service | | | | 499 | | | | | 433 | | | | | (66 | ) | | | Microlink Rental Semi Permanent Circuits | | | | (3 | ) | | | Pay TV Bundling | | | | 106 | |
| | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | HFC Cable TV | | | | 35 | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | Yellow Pages Direct | | | | 8 | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
Sales revenue | | | | 15,470 | | | | | 15,470 | | | | | — | | | | | | | | | | 279 | | | | | | | | | | 279 | |
| | | | | | | | | | | | | | | | | | | | | | |
| Other revenue | | | | 486 | | | | | 486 | | | | | (0 | ) | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
Total revenue | | | | 15,956 | | | | | 15,956 | | | | | (0 | ) | | | | | | | | | 279 | | | | | | | | | | 279 | |
Page 14
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| | | | | |
| | TELSTRA CORPORATION LIMITED | | |
| | | | | |
| | 
/s/ Douglas Gration | | |
| | | | | |
| | | | |
| | Name: Douglas Gration | | |
| | Title: Company Secretary | | |
| | | | | |
| | Date: 20 April 2005 | | |
