Capital allocation strategy review

In November 2016 we announced our intention to review our capital allocation strategy over a 6-12 month period
We said we would take into account:
• nbn™ receipts
• balance sheet structure and settings
• longer term capex requirements post rollout of the nbn
• investment decisions including M&A criteria
• returns to shareholders including dividends, buy-backs and other forms of returns
Since November 2016 we consulted with our shareholders and have now completed the capital allocation strategy review
Overwhelming and consistent feedback from our shareholders highlighted the importance of retaining a strong balance
sheet through the nbn transition period and against the backdrop of a competitive operating environment

FY18 guidance1
Measure..... FY17...... FY18
GUIDANCE
Total income $28.2b $28.3b to $30.2b
EBITDA $10.7b $10.7b to $11.2b
Net one-off nbn DA receipts less nbn net C2C $1.3b $2.0b to $2.5b
Capex $4.6b $4.4b to $4.8b
Free cashflow $4.3b $4.4b to $4.9b

1. Underlying earnings is defined as NPAT from continuing operations excluding net one-off nbn receipts (as defined in footnote 2).
2. “net one-off nbn receipts” is defined as net nbn one off Definitive Agreement receipts (consisting of PSAA, Infrastructure Ownership and Retraining) less nbn net cost to connect less tax.
3. Return subject to no unexpected material events, assumes nbn™ rollout is broadly in accordance with the nbn Corporate Plan 2017 and receipt of associated one-offs, and is subject to Board discretion having regard
to financial and market conditions, business needs and maintenance of financial strength and flexibility consistent with Telstra’s capital management framework.
4. Capex excludes expenditure on spectrum, measured on an accrued basis. Capex excludes externally funded capex.
5. This guidance assumes wholesale product price stability and no impairments to investments, and excludes any proceeds on the sale of businesses, mergers and acquisitions and purchase of spectrum.
The guidance also assumes the nbn™ rollout is broadly in accordance with the nbn Corporate Plan 2017.

courtesy of Bell Direct
========================================================================================
( DYOR )

i hold TLS

as best i can work out , the buy-backs are cancelled , and the estimates regarding the NBN are flawed ( courtesy of the NBN rollout actual performance )

will some bigger funds start dumping/short-selling ???

( i have a top-up order in the market at $3.40 )