Telstra profits from growing mobile, data and internet business

By Phil Boeyen, ShareChat Business News Editor

Wednesday 30th August 2000

Aussie telco Telstra has posted an A$3.7 billion net profit, a lift of 5.5% on last year's result.

Sales rose 5.9% to $18.6 billion, led by continued strong growth in newer businesses such as mobiles, data and internet services, intercarrier/wholesale and managed services, which the company says now contribute 53 percent of sales revenues.

The company's pre-abnormal profit was $4.043 billion, 16% higher than last year.

CEO, Ziggy Switkowski, says the full year results show Telstra is operating successfully in an intensely competitive market, and that the telco had achieved its goals to capitalise on existing domestic business and international markets, and to identify new growth sectors.

"It was a year of hard won achievements where the second half result was a real improvement as the company took significant action to meet the demands of its customers, confront the competitive challenges and reposition itself in an increasingly globalised environment."

Dr Switkowski says the company had seized a number of growth opportunities during the year including the rollout of CDMA, mobile data rollouts, expansion into New Zealand through Telstra Saturn, announcing the launch of ADSL, and e-commerce initiatives. He adds that the alliance with PCCW is expected to create a strategic platform for Asia-Pacific growth.

The Telstra Board has declared a final fully franked dividend of 10 cents per share and installment receipt, taking ordinary dividends for the year to 18 cents compared with 17 cents in the previous year.

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