Share To Buy Telstra Limited (TLS)

telstra logoTelstra Corporation Limited (TLS) is a full service domestic and international telecommunications provider and is without question the dominant telco in Australia.

The company provides telephone exchange lines to homes and businesses, supplying local, long distance and international telephone calls and supplying mobile telecommunications services. TLS also provides data, internet, on-line services and directory services.

TLS has five key business segments:

>>Telstra Consumer and Country Wide, which is responsible for servicing metropolitan, regional, rural and remote parts of Australia with a full range of products and services.
>>Telstra Wholesale, which provides a wide range of wholesale products and services to the Australian domestic market.
>>Telstra Business is responsible for serving the unique needs of Australia’s small to medium enterprises (SMEs).
>>Telstra Enterprise and Government unit is responsible for providing innovative Information and Communications Technology (ICT) solutions to large corporate and government customers in Australia and New Zealand.
>>Other, which includes all division that are not covered above and includes; Telstra Operations, Sensis and Telstra International Group.

Key Points

FY13 Results:

>>Revenue over the year grew by 1.9% to $26 billion.
>>Net profit for the year came in at $3.9 billion a 12.9% increase on the prior year’s result. The profit increase was ahead of consensus estimates of $3.69 billion.
>>The strong results continue to be driven by a lead mobile growth with revenue rising by six per cent to $9.2 billion.
>>The mobile division added 1.3 million subscribers for the year, which is likely the result of glitch-plagued Vodafone Australia whose network infrastructure has become overstretched.
>>Telstra continued to build momentum in its Network Applications and Services (NAS) portfolio, with revenue increasing 17.7% for the year.
>>The group returned a dividend of 28 cents per share fully franked dividend for FY13.


The groups FY13 results were solid and showed impressive growth for a company of its size.

TLS’s is committed to stabilise its core businesses remains, but we have noted an increase focus on some of its underdeveloped sub divisions, in particular Network Applications and Services.

We like the move as the product compliments its other offerings, whilst has relatively lower capital outlay requirements.

TLSs current businesses still continued to benefit from previous network upgrades, whilst a new focus on its underdeveloped business will see continued growth for its earnings and its share price.

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