TELSTRA SHARE PRICE - A SAD HISTORY
2018 LATEST FINANCIAL RESULTS
Source: Telstra Annual Report 2018
Continuing Operations 2018 2017 2016 2015 2014
Total Income $29,042m $28,205m $27,050m $26,112m $26,296m
Profit $ 3,529m $ 3,874m $ 3,832m $ 4,114m $ 4,549m
Dividends per share 22.0c 31.0c 31.0c 30.5c 29.5c
Continuing Operations 1 2018 2017 2016 2015 2014
Total income excluding $29,042m $28,205m $27,050m $26,112m $26,296m
excluding finance income
EBITDA 2 $10,121m $10,679m $10,465m $10,533m $11,135m
EBIT 3 $ 5,651m $ 6,238m $ 6,310m $ 6,559m $ 7,185m
Profit for the period from $ 3,529m $ 3,874m $ 3,832m $ 4,114m $ 4,549m
continuing operations
Profit for the period from $ -m $ -m $ 2,017m $ 191m $ -204m
discontinued operations 4
Profit from continuing and $ 3,529m $ 3,874m $ 5,849m $ 4,305m $ 4,345m
discontinued operations
Dividends declared per 22.0c 31.0c 31.0c 30.5c 29.5c
share (cents)
Total assets $42,870m $42,133m $43,286m $40,445m $39,360m
Gross debt $15,368m $16,218m $16,009m $14,962m $16,048m
Net debt $14,739m $15,280m $12,459m $13,566m $10,521m
Total equity $15,014m $14,560m $15,907m $14,510m $13,960m
Capital expenditure 5 $ 4,717m $ 4,606m $ 4,045m $ 3,589m $ 3,661m
Free cashflow $ 4,695m $ 3,496m $ 5,926m $ 2,619m $ 7,483m
Earnings per share (cents) 30.0c 32.5c 47.4c 34.5c 34.4c
Dividend payout ratio (%)6 73% 95% 65% 88% 86%
Notes:
1.Represented the Autohome Group being classified as a discontinued operation.
2.Operating profit before interest, depreciation and amortisation and income tax expense. EBITDA is used as a measure of financial performance by excluding certain variables that affect operating profits but which may not be directly relate to all financial aspects of the operations of the company. EBITDA is not a measure of operating income, operating performance or liquidity under A-IFRS. Other companies may calculate EBITDA in a different manner to us.
3.EBITDA less depreciation and amortisation.
4.Profit/(loss) for the year from discontinued operations for FY15 and FY16 included both Sensis and Autohome Group results, while FY14 and FY13 only included Sensis results.
5.Capex is defined as additions to property, equipment and intangible assets including capital lease additions, excluding expenditure on spectrum, measured on an accrued basis. Excludes externally funded capex.
6.Dividend payout ratio from continuing and discontinued operations. Dividend payout ratio from continuing operations FY16: 98%
BUSINESS UNIT RESULTS
Source: Telstra Annual Report 2018
Total external income FY18 FY17 Change
Telstra Consumer and Small Business $14,683m $14,722m -0.3%
Telstra Enterprise $ 8,249m $ 8,108m 1.7%
Telstra Wholesale $ 2,737m $ 2,837m -3.5%
Telstra Operations $ 1,217m $ 1,151m 5.7%
All Other $ 2,156m $ 1,387 55.4%
Total Telstra segments $29,042m $28,205 3.0%
MOBILE CUSTOMERS
Source: Telstra Annual Report 2018
2016 17.2m
2017 17.4m
2018 17.7m
LABOUR COSTS
Source: Telstra Annual Report 2018
Labour
Total labour expenses decreased by 4.2 per cent or $224 million to $5,157 million. Redundancy costs decreased by 47.9 per cent or
$150 million resulting from higher restructuring related costs in FY17, while labour substitution costs decreased by 6.1 per cent or
$59 million due to a reduction in labour outsourcing. Salary and associated costs decreased by $9 million or 0.2 per cent.
Total full time staff and equivalents (FTE) remained steady at 32,293, with an increase in domestic FTE offset by an offshore
reduction.
Operating expenses FY18 FY17 Change
Labour $ 5,157m $ 5,381m -4.2%
Goods and services $ 8,758m $ 7,671m 14.2%
Other expenses $ 4,984m $ 4,506m 10.6%
Total operating expense $18,899m $17,558m 7.6%
Staff FTE 32,293 32,293 0%
CEO REMUNERATION
Source: Telstra Annual Report 2018
The report shows a pay reduction. However a later table exposes more income.
Fixed Non Monet EVP/STI STI LTI TOTAL
2017 Andrew Penn $2,325k $ 9k $1,486k $349k $ 0k $3,745k
2018 Andrew Penn $2,374k $ 5k $1,103k $263k $1,039k $5,208k
Salary EVP NonMon Super Leave Shares Rights TOTAL
2018 $2,354k $1,103k $ 5k $ 20k $ 59k $ 672k $ 305k $4,518k
2017 $2,305k $1,486k $ 9k $ 20k $ 57k $ 464k $1,319k $5,660k
Maximum potential EVP opportunity for Andy Penn in 2018 is $9,560,000.
EVP Executive Variable Remuneration Plan
STI Short Term Incentive