Top Telco Telstra Corporation
(ASX:TLS) has slashed its guidance for sales revenue in fiscal 2010.
The company says it now expects sales revenue for the 2010 financial year to be flattish compared to fiscal 2009.
This compares to the Telco’s previous guidance for sales revenue to grow in the low single digits.
Telstra says the major drivers of the lower than expected growth are the strength in the Aussie dollar, tough operating conditions in Hong Kong, strong domestic competition and an accelerated move to wireless-only homes which is impacting revenue in PSTN and fixed broadband products.
However the company maintained its forecast for earnings to grow in the low single digits and says it remains confident of achieving its 2010 free cashflow target of $6 billion.
Telstra earned net profit after tax of over $4 billion in fiscal 2009.
