Telstra revises FY19 guidance for nbn Corporate Plan 2019

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    • 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
    FY19 Guidance
    (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
    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.

    courtesy of Bell Direct

    ( DYOR )

    i hold TLS

    i think you could probably factor in extra negative adjustments to come later , looking back at the NBN's history of missing deadlines and guidelines

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