Telstra updates FY20 guidance for NBN Co’s Corporate Plan 2020

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    Monday 2 September – Telstra has today updated its FY20 guidance1, following the release of NBN Co’s
    Corporate Plan 2020 last Friday.
    Telstra’s FY20 guidance provided to the market on 15 August 2019 was predicated on NBN Co’s previous
    Corporate Plan 2019 and assumed the nbn rollout and migration in FY20 would be broadly in accordance
    with the 2019 plan.
    NBN Co’s Corporate Plan 2020 provided updated information regarding their outlook for FY20, including a
    reduction in the total number of premises forecast to be connected during FY20 from 2 million to 1.5
    million.
    This change materially impacts the guidance Telstra provided on Total Income, Underlying EBITDA and
    the amount of included in-year nbn headwind, Net one-off DA receipts less nbn net cost to connect and
    Free cashflow after operating lease payments. This change has also led Telstra to update its FY20 cost
    reduction target from $660 million to $630 million.
    Telstra no longer anticipates FY20 being the year of peak nbn headwind and now estimates this will occur
    in FY21.
    The changes to forecast activations in NBN Co’s Corporate Plan 2020 also has the effect of deferring Per
    Subscriber Address Amount (PSAA) receipts from NBN Co in FY20 into future periods. This will be partly
    offset by the natural hedge including benefits from lower nbn costs to connect (C2C), lower network
    payments to NBN Co and retained wholesale EBITDA.

    courtesy of Bell Direct
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