Tesltra results: Autohome divestment boosts profit 35%

Morgans Financial Limited

Telstra reported an impressive headline result with reported profit surging 36% to A$5.8bn. However, this included a ~A$2bn gain on the divestment of AutoHome; continuing profits were down 7% YoY to A$3.8bn. Operating cash flow and free cash flow grew strongly and allowed TLS to increase the final dividend to 15.5cps fully franked. Mobile EBITDA was up 3.2% YoY. NAS and Global connectivity reported 112% and 88% YoY EBITDA growth, respectively. Negatives were; fixed EBITDA declined 4.5% YoY, and Data & IP EBITDA declined 5.5%. FY16 included the divestment of AutoHome, so we’ve rebased our FY16 forecasts on updated numbers. We’ve incorporated TLS's guidance for CapEx at 18% of revenue. The net result is our free cash flow forecast declines 3.4% in FY17. On a like-for-like basis, we now forecast 4% normalised EPS growth for FY17. Read the full story for more detail, including our analyst rating: (VIEW LINK)

Morgans Financial Limited

Morgans is Australia's largest national full-service retail stockbroking and wealth management firm, with more than 300,000 clients, 500 authorised representatives and 850 staff, operating from offices in all states and territories. As well as...


No areas of expertise

ASX:TLS August 2016 Reporting Season


Please sign in to comment on this wire.