Telstra Corporation Revises FY2018 Guidance for nbn

Telstra today revised FY18 guidance as a result of the impact of nbn co’s announcement that it would cease sales on hybrid fibre co-axial (HFC) technology for six to nine months from 11 December 2017, as well as nbn co’s Corporate Plan 2018.

Telstra also reaffirmed it expects FY18 total dividend to be 22 cents per share fully franked including ordinary and special, in accordance with its dividend policy announced in August 2017.

Telstra’s FY18 guidance included an assumption that the nbn rollout would be broadly in accordance with the nbn Corporate Plan 2017. nbn co subsequently issued its Corporate Plan 2018 on 31 August 2017. This change reduced the number of brownfields Ready For Service (RFS) premises and included a reduction of 200,000 brownfield activations in FY18 relative to the previous Corporate Plan, which has a negative impact on Telstra’s expected FY18 Per Subscriber Address Amount (PSAA) and one-off Infrastructure Services Agreement (ISA) ownership receipts.

While this change impacted Telstra’s financials, the impact did not result in Telstra’s outlook falling outside of its guidance range. However, with the addition of the delays from the nbn cease sale of HFC announced earlier this week, Telstra’s outlook is now outside of the guidance range and has been updated accordingly.


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