1min read
PREVIOUS ARTICLE Reporting season analysis NEXT ARTICLE 2 Stellar IPOs to Watch - 1 Tourism, 1 Biotech

REPORTING SEASON: Telstra (TLS)

Brought to you by CommSec

Figure 1: Telstra 3 month chart

Telstra, Australia’s largest telecommunications company & the local market’s sixth biggest stock, has posted a slightly lower than expected (market forecasts) profit of $1.59b for the 1H (July-Dec 2012).

Profit still rose by 8.8% while revenue edged higher by 1%. TLS added 607,000 domestic mobile customers to take its total client base to 14.4 million.

Its mobile division continues to make up a big chunk of the telco’s sales (around 36% of total revenue).

The shift from its fixed business to mobile continues with a 4% fall in revenue for fixed which was counteracted by a 4.6% rise in mobile sales.

One of Telstra’s most attractive features for investors is its dividend (yield).

TLS has paid out at least a 14 cent a share distribution to eligible shareholders each 6 months for the past 7 years. Based on its current share price, this is a return of around 6% per year.

A 14c/share dividend will be paid to eligible shareholders on 22 March. The Telco hasn’t changed its guidance for 2O13.

TLS shares have improved by 4.8% so far in 2013, adding to 2012’s 31% rise.

 

You can see all of CommSec’s reporting season analysis by clicking here.

Steven Daghlian, Market Analyst,