Telstra Corporation Ltd
Appointment of Company Secretary: Telstra Corporation Ltd (ASX: TLS) has lately announced the appointment of Sue Laver, Deputy Group General Counsel, as Company Secretary. The appointment will be effective from February 2018.
Investments and Guidance: TLS is investing up to a $3 billion incremental capex over three years to June 30, 2019 and has the new dividend policy with slashed dividend (with 2017-18 full year dividend pay-out cut by 30 per cent to yield 22 cents per share.). The total capex (including spectrum) over three years to FY 19 is expected to exceed $15 billion. The company has also deployed $750 million of strategic investment till 30 June. At the same time, TLS is reducing its core fixed cost to less than $1.5 billion. Moreover, TLS in FY 18 expects the total income to be in the range of $28.3 billion to $30.2 billion and EBITDA is expected to be in the range of $10.7 billion to $11.2 billion.
FY18 Guidance (Source: Company Reports)
Meanwhile, TLS stock has fallen 20.79 per cent in three months as on November 16, 2017 and is trading at a decent price to earnings level. The group has been on the downswing lately with increasing competition in the sector while challenges are being thrown up from the rollout of the National Broadband Network (NBN). A part of the market still believes that it might be good to invest in the stock at the undervalued level. On the other side, nbn full roll-out between 2020 and 2022 can dig holes in Telstra’s pocket by impacting earnings of up to $3 billion a year.
Market Position (Source: Company Reports)
Nonetheless, the market majorly is still convinced about its resilient balance sheet and market leading position in many segments. For instance, TLS has about 50 per cent of the pie of broadband market and corporate telecommunications each, and mobile market slice also sits around 50 per cent. Further, the group has some key products and purchases like Spectrum that are thought to be important with respect to the competitive position of the group. We believe it might be better to wait and watch the stock price movement given the current set of developing trends in the industry before gaining more exposure to the stock.
Disclaimer
The advice given by Kalkine Pty Ltd and provided on this website is general information only and it does not take into account your investment objectives, financial situation or needs. You should therefore consider whether the advice is appropriate to your investment objectives, financial situation and needs before acting upon it. You should seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) as necessary before acting on any advice. Not all investments are appropriate for all people. Kalkine.com.au and associated pages are published by Kalkine Pty Ltd ABN 34 154 808 312 (Australian Financial Services License Number 425376). The information on this website has been prepared from a wide variety of sources, which Kalkine Pty Ltd, to the best of its knowledge and belief, considers accurate. You should make your own enquiries about any investments and we strongly suggest you seek advice before acting upon any recommendation. Kalkine Pty Ltd has made every effort to ensure the reliability of information contained in its newsletters and websites. All information represents our views at the date of publication and may change without notice. To the extent permitted by law, Kalkine Pty Ltd excludes all liability for any loss or damage arising from the use of this website and any information published (including any indirect or consequential loss, any data loss or data corruption). If the law prohibits this exclusion, Kalkine Pty Ltd hereby limits its liability, to the extent permitted by law to the resupply of services. There may be a product disclosure statement or other offer document for the securities and financial products we write about in Kalkine Reports. You should obtain a copy of the product disclosure statement or offer document before making any decision about whether to acquire the security or product. The link to our Terms & Conditions has been provided please go through them and also have a read of the Financial Services Guide. On the date of publishing this report (mentioned on the website), employees and/or associates of Kalkine Pty Ltd do not hold positions in any of the stocks covered on the website. These stocks can change any time and readers of the reports should not consider these stocks as advice or recommendations.