Telstra trims profit forecasts for FY19

Company News

by Rachael Jones

Telstra (ASX:TLS) have revised their FY19 guidance based on the NBN Corporate Plan released on 31 August 2018.

The earlier guidance included the assumption that more houses and businesses would be ready for the NBN service. Telstra have now been forced to declare their revenue would be $300 million lower than previously forecast. It now expects income in the range of $26.2 billion to $28.1 billion.

EBITDA has been reduced by $100 million.

While the lower volumes impact Telstra’s outlook for FY19, it is anticipated these changes will be financially positive to Telstra over the full rollout due to the effects of the natural hedge.

Shares in Telstra (ASX:TLS) closed 0.66 per cent lower to $3.02.

Rachael Jones

Finance News Network
Rachael comes to FNN after working for Fairfax Media covering international breaking news, including the global economy and politics. She joined FNN in February 2018. She has reported on Australia’s finance news for various organisations since 2000 and has also interviewed a number of key business players, including Bill Gates. Rachael has also worked across a number of countries, including the UK and the US.