Telstra
(ASX:TLS) is expected to announce weak revenue and a decline in profit this morning, and may outline plans to further cut costs to reverse its decline in profit margins.
The forecast is for a 1.9 per cent fall in revenue to $24.8 billion, with earnings of $10.84 billion before tax and amortisation.
The dividend is not expected to change.
A fall $222 million drop in revenue from fixed telephones in the first half of the 2009-10 financial year is likey to be a contributing factor.
Since then the company has released the T-box and T-hub to try to turn fixed-line revenue around.
Still, analysts are expecting a 6-8 per cent decline in the number of fixed-telephone customers, but they think recent price cuts in BigPond internet prices may have enticed more fixed-broadband customers.
Looking at Telstra’s net profit results, the telco posted just over a $4 billion profit in 2009.
