REPORTING SEASON: Telstra (TLS)
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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.