Current
(TLS)
Protracted negotiations taking their toll
The longer negotiations with the government and NBN continue the greater will be the impact on revenue and earnings. Top line management is being distracted from the pressing issues involving three key operations - PSTN, Mobile and Sensis. In all three key areas revenue is under significant pressure making the achievement of margin guidance increasingly difficult. At present Telstra is seen as an easy target by competitors and they are collectively making inroads into market share.
The accelerating decline in PSTN revenue caused TLS to miss both 1H10 revenue and earnings guidance and the downgrade to FY10 revenue guidance from low single digit growth to a low single digit decline.
Mobiles, which was the largest single contributor to 1H10 group sales revenue, with $3.62bn representing almost 30% is also under pressure. Clearly TLS continues underperform in smartphones as Optus and Vodafone capture share by linking with the successful iPhone handset.
Sensis revenue is also being pressured. Yellow ? revenue, which represented 57% of total Sensis advertising and directories revenue in 1H10, fell 4.4% and the downward trend is accelerating at least in part to Google aggression.
Read Report.. » | Company Profile.. »
Previous
(QAN)
Freight and economy traffic picking up
The airline industry warily upgraded its CY10 global forecasts due to passenger and freight demand recovering faster than expected.
Air freight volumes have recovered about two-thirds of their fall. International economy passenger revenues have regained about half of their fall from the CY08 peak to be down by only about 10%.
Read Report.. » | Company Profile.. »
(WOW)
Margins to the fore
While 1H10 sales growth in Australian Food & Liquor (F&L) may have disappointed WOW restored confidence with NPAT at the upper end of expectations, a solid overall margin performance and a surprise $400m on-market share buy-back.
Increasing sales and widening margins continue to drive earnings growth.
Read Report.. » | Company Profile.. »
(CSL)
Growing demand for plasma derived products
1H10 NPAT is up 23% to $617.4m and up 32% in constant currency, beating market expectations of $590m.
The strong result led CSL to say it now expects the FY10 result to be at the upper end of its guidance, which using current exchange rates is expected to be between $970m and $1,070m.
Read Report.. » | Company Profile.. »
(CBA)
Dividend disappoints as CBA prepares for prudential reform
CBA reported 1H10 cash NPAT of $2,943m, up 39% on pcp and 15% on 1H09. The result was in line with the guidance of 15 January. Comparatives were proforma, assuming a full six-month contribution from BankWest in 1H09.
EPS increased 46% on pcp, or 23% on 2H09, to 185.1c
The interim dividend was 120c fully franked, up 7c.
Read Report.. » | Company Profile.. »
© Copyright Huntleys' Investment Information Pty. Limited (HII) (a wholly owned subsidiary of Aspect Huntley Pty Limited), 2006. All rights reserved. Australian Financial Services Licence no. 240892. No material may be reproduced, except as allowed by the Copyright Act, without the prior written approval of HII. Some of the material provided by HII is copyright and is published under licence from ASX Operations Pty Limited ACN 004 523 782 ("ASXO").
DISCLAIMER: While the above-mentioned advice and information are based on information, which HII consider reliable, its accuracy and completeness cannot be guaranteed. This report is made without consideration of any specific clients investment objectives, financial situation or particular needs. Accordingly, the client should, before acting on the advice, consider the appropriateness of the advice, having regard to the client's objectives, financial situation and needs. Those acting upon such information do so entirely at their own risk. For a copy of HII's Financial Services Guide, please go to http://www.aspecthuntley.com.au/FSG or phone HII on (02) 9256 8000 to request a copy.
DISCLOSURE: The directors and associated persons or entities of HII may have an interest in the securities discussed in this report.
