Telstra lowers FY18 guidance by $700m from NBN hit

Company News

by Kathy Skantzos

Telstra (ASX:TLS) has revised its FY2018 guidance by $700 million after a setback from the National Broadband Network (NBN) rollout affected by the NBN corporate plan, including a cease of sales of HFC (hybrid fibre co-axial) technology.

The new guidance is in the range of $27.6 billion to $29.5 billion. Earnings (EBITDA) guidance has also reduced $600 million to a range of $10.1 billion to $10.6 billion.

Telstra said the biggest impact would be from its ownership receipts from the NBN, with a delay of up to nine months for the issues to be ironed out.

Telstra’s previous guidance was based on the assumption the NBN rollout would be in accordance with the NBN’s 2017 corporate plan, however the 2018 corporate plan issued on 31 August 2017 included changes which have negatively impacted its expected financials.

The telco reaffirmed it expects an FY2018 total dividend of 22 cents per share fully franked.

Shares in Telstra (ASX:TLS) are trading 0.58 per cent lower to $3.41.
 

Kathy Skantzos

Finance News Network
Kathy presents the Market Outlook and ASX company news. She joined FNN in September 2017. She has been in print and online journalism for over 9 years. She also worked in corporate communications.