Australia's largest telecommunications provider Telstra Corporation Ltd on Friday reiterated its full year financial guidance, and predicted a lift in customer numbers but a fall in earnings for its first half.
Chief executive David Thodey told Telstra's annual general meeting the telco still expected earnings before interest, tax, depreciation and amortization (EBITDA) to fall by a high single- digit percentage in 2010/11.
Revenue will be flat, while the customer base will increase, he said.
"I currently expect our half-year results will show higher customer numbers, a low double digit decline in EBITDA as a result of increased redundancy costs in the first half," Thodey said.
"The company remains strong and in an excellent position to capitalize on the emerging market opportunities," he said.
Negotiations on the national broadband network (NBN) remain " critically important", Thodey said, with the company keen to see talks progress as quickly as possible.
Chief financial officer John Stanhope said that it may take months for the legislation to pass through parliament, but Telstra still expects to hold a meeting for shareholders to vote on the issue by mid-2011.
Chairman Catherine Livingstone said, "In the short-term we need to do more to protect shareholder value, because your board is very concerned by Telstra's undervalued share price."
The share price has fallen to record lows due to the company's lack of growth in revenue and profits, the uncertainty surrounding the NBN, and a devaluation of incumbent telecom stocks globally, Livingstone said.
