Telstra results on track to meet 2010 targets

15.02.2007
Ovum research director David Kennedy, said Telstra is on track to achieve its 2010 targets following the release of its half yearly earnings which show a better than expected result.

Telstra Thursday announced earnings before interest and tax (EBIT) ahead of guidance for the half year ended 31 December 2006 - a decline of 15.7 per cent or A$546 million (US$426.6 million) to $2.9 billion, better than the expected 17 to 20 percent fall detailed in the T3 prospectus.

Profit after tax was $1.7 billion, down $430 million or 20.1 per cent on the prior corresponding half year. As expected, these results were affected by transformation costs and other one-off factors that will be more than made up in the second half.

Telstra CEO Sol Trujillo, said the telco is only 13 months into a five year transformation.

"However, with 47 months to go, we have reached the pivot point, with positive earnings growth to recommence in the second half," Trujillo said.

"We are on or ahead of our transformation plan on all fronts. Our financial performance is ahead of guidance. We are winning where it matters - in 3G, broadband and digital online offerings.