REG - Telstra Corp. Ld - TLS revises FY19 guidance for nbn Corp Plan 2019

TelstraAnnouncement

06/09/2018 07:05

RNS Number : 9262Z
Telstra Corporation Ld
05 September 2018
 


 
 
 
 
 




6 September 2018
 
 
The Manager
 
RNS


Office of the Company Secretary
 
Level 41
242 Exhibition Street
MELBOURNE VIC 3000 AUSTRALIA
 
General Enquiries   03 8647 4838
Facsimile 03 8600 9800




 
  
ELECTRONIC LODGEMENT
 
 
 
 
Dear Sir or Madam
 
Telstra revises FY19 guidance for nbn Corporate Plan 2019
 
In accordance with the Listing Rules, I attach a market release for release to the market. Yours faithfully
Yours faithfully,
Sue Laver,  Company Secretary
 
 
 
 
 
 
 
 
 
 
Telstra Corporation Limited
ACN 051 775 556
ABN 33 051 775  556

 

 
 
MARKET RELEASE
 
 
 
Telstra revises FY19 guidance for nbn Corporate Plan 2019
·      Modest FY19 guidance reductions due to updated nbn Corporate Plan
·      Guidance unchanged outside updated nbn rollout assumptions
·      Changes expected to be financially positive to Telstra over the full nbn rollout
 
Thursday 6 September 2018 - Telstra today revised FY19 guidance based on the nbn co Corporate Plan 2019 released on 31 August 2018.
 
Telstra's FY19 guidance included an assumption that the nbn rollout and migration in FY19 would be broadly in accordance with management's current best estimates and may be updated for any material changes, including after taking account of the nbn Corporate Plan 2019 when it was published.
 
The nbn Corporate Plan 2019 includes lower than previously estimated premises declared Ready for Service (RFS) and premises activated for FY19. This has the effect of deferring Per Subscriber Address Amount (PSAA) receipts from nbn in FY19 into future periods. This will be partly offset in FY19 by the natural hedge 

including benefits from lower nbn costs to connect (C2C), lower network payments to nbn and retained wholesale EBITDA.
 
While the lower volumes impact Telstra's outlook for FY19, it is anticipated these changes will be financially positive to Telstra over the full rollout due to the effects of the natural hedge.
 
The revised FY19 guidance assumes operating earnings are otherwise unchanged. The net impact and revised FY19 guidance is as follows:
 




Measure


Previous FY19 Guidance


FY19 Guidance Updated1


Change
(nbn rollout impact)




Total income2


$26.5b to $28.4b


$26.2b to $28.1b


$0.3b reduction




EBITDA excluding restructuring costs


$8.8b to $9.5b


$8.7b to $9.4b


$0.1b reduction




Net one-off nbn DA receipts less nbn net C2C3


$1.8b to $1.9b


$1.5b to $1.7b


$0.2b reduction




Capex


$3.9b to $4.4b


$3.9b to $4.4b


No impact




Free cashflow


$3.1b to $3.6b


$3.1b to $3.6b


Immaterial impact




 
Guidance range details by measure
 
Income: reduced by $0.3 billion including lower PSAA receipts, partly offset by higher wholesale legacy income.
 
EBITDA: reduced by $0.1 billion including the net one-off impact, partly offset by improved recurring impacts from lower nbn network payments and higher wholesale legacy wholesale income.
 
Net one-off nbn DA receipts less nbn net C2C: reduced by $0.2 billion including delayed one-off PSAA receipts (associated with lower expected in year nbn disconnection volumes), partly offset by lower cost to connect expenses. We have also widened the guidance range by $100 million.
 
Media contact: Steve Carey, +61 (0) 413 988 640
Email: media@team.telstra.com
Investor contact: Ross Moffat, +61 (0) 475 828 700
Email: investor.relations@team.telstra.com
 
Ref number: 121/2018
 
 
 
1 This guidance assumes wholesale product price stability and no impairments to investments or core assets, and excludes any proceeds on the sale of businesses, mergers and acquisitions and purchase of spectrum. The guidance also assumes the nbn™ rollout and migration in FY19 is broadly in a

ccordance with the nbn Corporate Plan 2019. The guidance is provided on the basis of AASB15. Capex is measured on an accrued basis and excludes expenditure on spectrum and externally funded capex.
2  Excluding finance income.
3  "net one-off nbn™ DA receipts" is defined as net nbn one off Definitive Agreement receipts (consisting of PSAA, Infrastructure Ownership and Retraining).




This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.
 
END
 
 
MSCLFFSFAIIEIIT