Telstra Corporation Ltd
(ASX:TLS) has forecast a fall in earnings for the first half of the 2011 financial year, but expects customer numbers will increase.
Speaking at its annual general meeting CEO David Thodey told investors EBITDA is expected to decline by a high single-digit percentage in the year ahead, while revenue is likely to be flat.
Telstra shares dropped to record lows this week, amid uncertainty over the National Broadband Network and a sell-off of the telco’s shares by the Future Fund.
However the telco says negotiations over the proposed $11 billion deal with NBN Co are progressing well, with a draft agreement possibly to be penned before the year is out.
Chairman Catherine Livingstone has confirmed that Telstra is committed to maintaining its fully franked 28 cent dividend in the 2011 year and beyond.
Telstra fell from a profit of $4.08 billion last year to $3.94 billion in the 2010 financial year.
