What next for Telstra

Intelligent Investor

Independent Financial Research

What next for Telstra? Mobile has been the major driver of Telstra's recent performance. In the five years to 2013 mobile revenues increased by 47% (8% a year), while earnings before interest, tax, depreciation and amortisation rose 86% (13% a year) as the EBITDA margin expanded from 30% to 38%. With about 16m mobile 'services in operation' (SIOs) at 31 Dec 2013, Telstra had 52% of the market compared to 31% for Optus and 17% for Vodafone Hutchison Australia (VHA). By spreading its infrastructure investment over more customers, Telstra delivers a better network and can spread its marketing costs across a bigger base, enabling it to increase market share and earn higher margins. That's no mean feat. But as good as this business is, there are two major problems First, it's extremely capital intensive and second, growth options are limited. Read the full blog post here: (VIEW LINK)


Intelligent Investor
Independent Financial Research

Intelligent Investor is an independent financial research service with a 14-year history of beating the market. Our value investing approach empowers Australians to make more informed decisions to build their long-term wealth. We off structural...

Expertise

No areas of expertise

I would like to

Only to be used for sending genuine email enquiries to the Contributor. Livewire Markets Pty Ltd reserves its right to take any legal or other appropriate action in relation to misuse of this service.

Personal Information Collection Statement
Your personal information will be passed to the Contributor and/or its authorised service provider to assist the Contributor to contact you about your investment enquiry. They are required not to use your information for any other purpose. Our privacy policy explains how we store personal information and how you may access, correct or complain about the handling of personal information.