REG - Telstra Corp. Ld - Prelim. info re FY14 Income Statements <Origin Href="QuoteRef">TLS.AX</Origin>

TelstraAnnouncement

06/09/2014 14:42

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RNS Number : 0443M
Telstra Corporation Ld
11 July 2014 
 
 11 July 2014     The ManagerRNS  Telstra Corporation LimitedOffice of the Company Secretary Level 41                                                                              
                                  242 Exhibition Street                                                                                                                            
                                  MELBOURNE VIC 3000                                                                                                                               
                                  AUSTRALIA General Enquiries            61 8 8308 1721Facsimile                          61 3 9632 3215 Email:companysecretary@team.telstra.com   
 
 
ELECTRONIC LODGEMENT 
 
Dear Sir or Madam 
 
Preliminary unaudited accounting treatment for divestments and other
information relating to Telstra's FY14 Income Statement 
 
During the year Telstra completed a number of corporate transactions. The
purpose of this note is to provide information to market participants on the
preliminary unaudited accounting treatment of these, as well as other
information related to Telstra's FY14 results which will be released on 14
August 2014. 
 
1.     On 28 February 2014, Telstra completed the divestment of 70 per cent of
its directories business for $454 million. Consistent with disclosure in
Telstra's FY14 half-year results, the Sensis Group will be reported as a
discontinued operation. The FY14 NPAT for the discontinued business in the
eight months to 28 February 2014 was a loss of $204 million. This includes the
loss on sale of $150 million, of which $100 million was included in the FY14
half-year income statement and an operating loss of $54 million reflecting the
seasonal nature of the business. 
 
2.     On 14 May 2014, Telstra completed the sale of its 76.4% interest in
Hong Kong mobiles business CSL for US$1.99 billion. As previously announced
the FY14 results will include the profit on sale of approximately $561
million, subject to completion accounts and audit.  The operating results for
CSL for the period 1 July 2013 to 30 April 2014 will be consolidated in
Telstra's FY14 results.   The CSL unaudited operating results at the end of
April include income of $1.05 billion and EBITDA of $261 million. 
 
3.     During the year the IPO of Autohome was completed. Following the IPO
Telstra holds 63.2% of the issued capital of Autohome.  The accounting book
value of Telstra's investment in Autohome in Telstra's consolidated financial
statements is $310 million. The market capitalisation of Telstra's
shareholding based on the Autohome share price at 10 July 2014 is $2.4
billion.  In accordance with accounting standards Telstra does not revalue its
investment in Autohome to market value as Autohome is a subsidiary which is
consolidated in Telstra's financial statements. 
 
4.     During the year Telstra ceased operations in the Octave investment in
China and commenced liquidation of the legal entities in the Octave Group. In
the FY14 results Telstra will record a write off of $98 million from the
foreign currency translation reserve associated with this investment. 
 
5.     Telstra's detailed product and expense reporting hierarchy is unchanged
from the FY14 half-year results. 
 
Yours faithfully 
 
Damien Coleman 
 
Company Secretary 
 
This information is provided by RNS
The company news service from the London Stock Exchange