Telstra 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:

 
FY12 Results

The groups’ FY12 results revealed low, but stable growth. EBITDA was $10.2 billion, a 2.1% increase on the prior year’s result on a guidance basis. Revenue over the year climbed 1.3%, to $25.4 billion.

TLS’s mobile division, which accounted for over 30% of entire group’s EBITDA, continues to be one of the company’s strongest contributors. The Mobile division reported an EBITDA of $3.12 billion, an 18.4% increase on the prior year’s result.

The group’s margins in this division also grew over the year from 33%, to an impressive 36% in FY12.

Investor day – strategy

The group’s investor day focused on the medium/long-term strategy and positioning of TLS. A few of the key points we gleamed from the presentation in regards to th core/mature business’s fixed lines, mobiles and internet:

 
The group plans to extract growth out of the less mature segments such as the Network Applications and Storage, Mobile Broadband or Foxtel.

Investor day – Decrease in Capex

A real positive announcement to come out of the investor day was the targeting of a lower capex/sales ratio.

TLS set it will target a capex/sales ratio of 14% in the medium-term, down from the 15% it has forecasts for FY13. This is most likely a result of the group’s involvement in the NBN, which is likely to be less capital intensive than its current network.

Looking ahead

TLS’s FY12 results showed the type of consistent growth we have come to expect. The investor update was a realistic approach to the business, with TLS understanding that it needs to protect its mature business rather than strive for unrealistic growth.

TLS is currently trading on a forecast yield (28c for FY13) of over 6.1%, fully franked, or 8.7% on a pre-tax basis. This yield, while not as attractive as before, is still likely to be enticing to investors given the low interest rate environment.

The aim of a lower capex/sales ratio is also good news as the high capital intensive nature of the business has always been a concern to market pundits. Overall we expect a solid result from TLS for the 1H13 and this should translate to further share price growth.

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Qantas Will Create First Low Cost Hong Kong Airline

Qantas Airways Limited (QAN) operates domestic and international airlines under the widely known Flying Kangaroo banner.

These airline operations are complemented by extensive holiday travel activities, catering facilities for QAN services and external customers, ground handling of baggage and freight, and engineering and maintenance services. QAN offers both premium and discount airlines.

S&P/ASX 200 stock Qantas Airways announced that it will create Hong-Kong’s first low-cost carrier.

Jetstar Hong Kong will be formed with joint venture partner Eastern Airlines with the aim of cornering the fast-growing Chinese market.

The initiative comes as the airline continues of expanding outside its home country to reduce costs and position itself to tap into the growing Asian economies.

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Qantas Airways (ASX:QAN) operates domestic and international airlines under the widely known Flying Kangaroo banner. These airline operations are complemented by extensive holiday travel activities, catering facilities for QAN services and external customers, ground handling of baggage and freight, and engineering and maintenance services.

Qantas updated the stock market today on its expected profit.   The company guided for 1H FY12 profit of $140-$190 million, from $417 million a year earlier.

Qantas said that the recent industrial action will cost approximately $194 million for the first half.

A company spokesman has also denied media speculation that it has shelved a planned Asia-based premium carrier.

Qantas’ passenger numbers for October showed a 1.8% decline compared to the previous year.

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Qantas Airways Limited (ASX:QAN) is one of the world’s leading airlines and an Australian icon.

On top of its standard domestic and international flights, QAN also owns budget airline Jetstar, regional airline QantasLink and related travel businesses Qantas Flight Catering.

Although some still consider QAN as a blue chip stock, its huge share price fall since the GFC has taken away a lot of its lustre.

Today QAN resumed flights after the Fair Work Tribunal ordered the termination of industrial action by its workers.

The carrier sensationally grounded its entire fleet on Saturday in response to the strikes, forcing the government to intervene in the crisis.

Qantas and its workers now have 21 days to resolve their dispute otherwise the Tribunal will impose a resolution of its own.

Following the tribunal’s decision, QAN has been one of the best performers in the Australian share market today.

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Qantas Airways Limited (ASX:QAN) is one of the world’s leading airlines and an Australian icon.

On top of its standard domestic and international flights, QAN also owns budget airline Jetstar, regional airline QantasLink and related travel businesses Qantas Flight Catering.

Although some still consider QAN as a blue chip stock, its huge share price fall since the GFC has taken away a lot of its lustre.

Today, QAN said it would plan to ground additional aircraft due to the ongoing strikes.

The group will ground two Boeing 767s, resulting in the loss of 20,000 seats.  The total hit to capacity has now reached 88,000 seats.

Qantas has not ruled further grounding of aircraft in response to the strikes.

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Qantas (ASX:QAN) is one of the world’s leading airlines, an Australian icon and is still seen as one of the market’s blue chip stocks.

On top of its standard domestic and international flights, QAN also owns budget airline Jetstar, regional airline QantasLink and related travel businesses Qantas Flight Catering.

Today Qantas announced a new international strategy in attempt to turn its fortunes around.

QAN will launch two new airlines servicing Asia.  One airline will be a Japanese low-cost carrier, with the other to be a new premium carrier.

1000 job cuts were also announced, although QAN’s unions warned that they will resist the plans.

The stock market was happy with the announcement, sending QAN shares up more than 1% so far.

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Qantas (QAN) is one of the world’s leading airlines, an Australian icon, and is considered among the market’s blue chip shares.

On top of its standard domestic and international flights, QAN also owns budget airline Jetstar, regional airline QantasLink and related travel businesses Qantas Flight Catering.

On 23 November, QAN advised that it plans to resume Airbus A380 flights from this Saturday, but only certain routes that don’t require the aircraft using full thrust.

The decision to restore flights follows an engine inspection program carried out in the wake of this month’s emergency landing in Singapore.

The initial flights will operate on routes between Australia and the UK.

QAN shares edged up 0.4%, making it one of the few gainers in the stock market on the day of its update.

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Virgin Blue Holdings (VBA) is one of Australia’s low cost (budget) airlines, whose main competitor is Qantas (QAN).

Although the majority of its operations are domestic, it has established international operations under the Pacific Blue and Polynesian Blue brands.

On October 11, VBA announced that the recent problems with its ticketing system will impact pre-tax profit by $15 million – $20 million.

VBA advised that it will actively pursue all avenues to recover the cost, and that prior to the outage, had seen trading conditions improve compared to the same period last year.

In fact, VBA has been one of the hot stocks in recent months, surging from a low of 28 cents in late August, to be currently trading around 47 cents.

VBA slumped 3.2% on the day of the announcement, making it one of the worst performers in the Australian stock market.

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Qantas (QAN) is one of the world’s leading airlines, an Australian icon, and is widely considered among the blue chip stocks in the Australian stock market.

On top of its standard domestic and international flights, QAN also owns budget airline Jetstar, regional airline QantasLink and related travel businesses Qantas Flight Catering.

According to the Australian Financial Review, QAN may be in talks to buy West Australian charter airline, Network Aviation.

Network Aviation offers services to fly-in-fly-out workers in remote mining towns.

QAN may pay more than $30 million for the acquisition in attempt to tap into Australia’s current mining boom.

Virgin Blue Holdings (VBA) us a budgeted full service airline carrier and offers holiday packages.

VBA has stated that the ACCC knocked back its request to form a trans-Tasman alliance with Air New Zealand.

The regulator was of the view that the alliance would reduce competition in the trans-Tasman market.

The bad news for VBA follows yesterday’s decision by US regulatory authorities to block its proposed tie-up with Delta Airlines.

Both decisions are a massive blow in VBA’s attempts to steal market share from Qantas (QAN), with its share price sinking another 7% on Friday.

QAN, on the other hand, jumped 2.4% due to the removal of another of its competitive threats.

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