Industry News
Tools
Typography
  • Smaller Small Medium Big Bigger
  • Default Helvetica Segoe Georgia Times

Australia’s leading telecommunications company Telstra has reported a slump in first half profit - as the combination of increased competition in the market and a shift towards digital have had a significant impact. Its fixed-line and mobile businesses both took a big hit due to the aforementioned factors above, with net profit after tax for the first-half to December 31st also plummeting a sharp 14.4% to AUS$1.79 billion ($US1.38 billion) from the previous period twelve months ago.

The repercussions of this for Telstra has been felt on the stock exchange with the bleak financial report sending shares prices tumbling down to 4.43% AUS$4.96 in mid-table trade in Sydney. Chris Weston, IG Markets chief strategist attempted to dissect Telstra’s failings and stated it as a ‘weak’ result for the Australian colossus.

Weston said, “It’s a weak result, you’ve got revenue and underlying profit all missing (market expectations) by a decent chunk. The implied volatility in a stock like Telstra is so low that this is as big a miss as you are going to get.”

Revenue for services such as fixed-line and mobile fell 4.7% and 8.7% respectively for this period. Overall sales revenue also decreased by 3.4% to AUS$12.79 billion. Telstra also disclosed an interim dividend of 15.5 AUS cents. Despite the poor nature of the financial results reported by the organization, Telstra chief executive Andrew Penn attempted to portray a positive light on reports – declaring the telco had performed well in a highly competitive market.

Penn said, “Data volumes have increased and intense competition on pricing across fixed, bundles, mobile, data and IP has had an impact. Those are in parallel with the acceleration of the rollout of (the National Broadband Network) which, over the longer term, will have a negative impact on EBITDA (earnings before interest, taxes, depreciation and amortization) of AUS$2-3 billion."

The NBN, or national broadband network, aims to connect most Australian homes to superfast Internet over the next few years, replacing Telstra's existing copper network.

Pin It

The advancement of technology has unlocked numerous possibilities and facilitated the exponential growth of data exchange, not only in Asia but across the globe. Securing digital information and processing data quickly have become among the most essential factors when it comes to dealing with large amounts of data worldwide.

Read more: Using Quantum Networks to Improve Digital Communication in Southeast Asia

Indonesia, with its sprawling archipelago and rapidly urbanizing population, faces significant challenges in its transportation infrastructure. The integration of 5G technology offers a transformative opportunity to develop Smart Transportation Systems (STS) that promise to enhance mobility, reduce congestion, and promote sustainable urban growth.

Read more: 5G-Enabled Smart Transportation Systems in Indonesia

While flash calling can be a convenient way to convey a message or signal urgency without engaging in a full conversation, it also has the potential to be misused or cause harm in certain situations.

Read more: Market Leader, Vox Solutions, Combats Flash Calls and Artificial Traffic in APAC

Fixed Wireless Access (FWA) meets rising global demand for wireless connectivity, enabling 5G for rapid, cost-effective, scalable, and dependable connectivity that catalyzes digital transformation across Asia.

Read more: Cradlepoint: Driving 5G Adoption in Asia Through Fixed Wireless Access

During Mobile World Congress (MWC 2024), Toni Eid, Founder of Telecom Review Group and CEO of Trace Media International, engaged in an exclusive discourse with Saleem Alblooshi, CTO of du, and Eric Zhao, Vice President and CMO of Huawei Wireless Solution to share their perspectives on the progress of the 5G industry, particularly the commercial launch of 5G-Advanced (5G-A or 5.5G).

Read more: du and Huawei Collaborate to Advance 5.5G Journey

Category Articles