Telstra (ASX:TLS) is a provider of telecommunications and information products and services, arguably best known as Australia’s dominant telco company.

Despite its troubles in recent years, TLS is a staple holding among retail investors and is still widely considered a blue chip stock.

Its principal activities are the provision of telephone lines; national local, and long distance, and international telephone calls; mobile telecommunications; data; internet and on-line; wholesale; telephone directories; and pay TV.

Today, TLS reported a 16.8% decline in FY11 net profit to $3.23 billion, although the result topped analyst expectations of a $3.09 billion profit.

Total revenue grew 0.7% on-year, whilst EBITDA fell 12.4%, matching TLS’ previous guidance.  A final dividend of 14 cents was declared, bringing the full year dividend to 28 cents.

TLS forecast a similar full year dividend in FY12, but this time was expecting low single digit growth in revenue and EBITDA.

The group based its forecast on the recent improvement in customer satisfaction as well as initiatives to simplify the company.

TLS has been one of the shares to buy today following the release of its results.

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Telstra (TLS) is a provider of telecommunications and information products and services, arguably Australia’s dominant telco company.  TLS has also long considered among the market’s blue chip stocks.

Its principal activities are the provision of telephone lines; national local, and long distance, and international telephone calls; mobile telecommunications; data; internet and on-line; wholesale; telephone directories; and pay TV.

TLS has been one of the shares to sell almost since the T2 float, independent of economic conditions, as customers have been shifting away from spending on landline products.

On 26 November, the Australian Senate has passed a bill to split TLS into separate retail and wholesale networks.

TLS will be required to give up parts of its existing copper-wire network in order to make way for the rollout of a fibre-optic network.  In return, the group will receive $11 billion in compensation.

CEO, David Thodey, said the compensation will be used to help fund acquisitions, pay down debt and/or initiate a share-buyback.

The bill will now head to the lower house for final approval.

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Telstra (TLS) is a provider of telecommunications and information products and services, arguably best known as Australia’s dominant telco company.

Its principal activities are the provision of telephone lines; national local, and long distance, and international telephone calls; mobile telecommunications; data; internet and on-line; wholesale; telephone directories; and pay TV.

TLS has historically been considered among the blue-chip stocks due to its market cap and generally high dividend yield.

However, recent troubles have seen TLS become one of the shares to sell.  Its stock price has sunk to all-time lows as speculation mounts that poor earnings are likely to see its dividend cut.

On 29 September, TLS reiterated its FY11 earnings guidance, stating that it still expects revenue to be flattish and that it will comfortably be able to fund a 28 cent dividend.

TLS plans to spend $1 billion in order to grow its market share and improve customer service – a strategy designed to reinvigorate revenue growth.

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Telstra (TLS) is Australia’s largest telecommunications provider and is a major mover on the ASX. Its main activities include the provision of; local and long distance telephone calls, mobile phone services, broadband access, search and information services, and the Foxtel cable service.

TLS has reported a 4.7% slump in FY10 net profit to $3.9 billion, which was in line with analyst estimates, although sales revenue declined 2% from a year ago.

Revenue dropped the most at TLS’s fixed line (PSTN) division, which continues to see an exodus of customers migrating to its competitors’ wireless services.

Most worrying however was the group’s forecast for flattish sales growth in FY11, indicating that its plans to transition away from fixed line services to wireless broadband offerings are going to take time.

TLS declared a final dividend of 14 cents per share, which was also in line with market consensus.

Australian stock price for TLS plunged 9.5% after its weak sales forecast.

Current Australian shares to buy are iiNet Ltd.

iiNet Limited (IIN) has announced it will buy out fellow ISP Netspace for $40 million. The deal appears to be a smart move by IIN, making it one of the shares to buy.

The acquisition will be 100% debt funded, and is expected to be completed by the end of next month.

The acquisition will increase IIN’s exposure in its key markets of Victoria, NSW, and Tasmania. Adding Netspace will grow IIN by about 20%, and boost its market share from 12.4% to 15%.

IIN expects the acquisition to generate over $70 million in revenue, and to add to earnings from next financial year.

This doesn’t even take into account the potential for synergies to boost the bottom line. Given the similarities between the businesses, synergies should be significant.

In terms of shares to buy, IIN soared 7% on the day the deal was announced.  Such a strong rise likely means the market has given the deal a tick of approval.

Telstra is Australia’s largest telecommunications provider, with its main activities including the provision of; local and long distance telephone calls, mobile phone services, broadband access, search and information services, and the Foxtel cable service.

Telstra’s recent troubles are a major reason why it is currently one of the shares to sell.

Currently, it is involved in a fight with the Federal government over the breakup of its wholesale and retail businesses, and this is causing much uncertainty among investors.

It is this uncertainty that is contributing to the downward pressure on Telstra’s stock price.

The Federal government has postponed debate on breaking up Telstra until later this week.

In other news, Telstra has successfully completed a EUR1 billion bond issue.

The bond was around six times oversubscribed, which represents a successful foray into the debt market by Telstra.

The successful raising of such a large amount of capital is seen as a vote of confidence in Telstra among fixed-income investors.

Telstra’s share price has recovered somewhat from recent lows, however it is still in an overall downward trend, and the performance of the stock warrants its status as one of the shares to sell.