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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