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.
Learn more with a free report!