Australia's unemployment rate rose to 3.7 per cent in July, surpassing most economists expectations. It comes as the local sharemarket is trading lower despite a flurry of earnings reports from some of Australia's biggest companies. Follow live.
Where has Telstra's massive profit come from? Have they sold off a chunk on the business, or is it genuine improvements?Good question Todd, and I'll be able to bring you some more expert insights once we start getting the initial commentary from analysts who live and breathe telecommunications.
But a quick initial impression is that it's probably mainly down to cost-cutting, although there could be some price increases in the mix boosting margins. Off a 5.4% rise in "total income", basically revenue, the telco has managed to generate a 9.6% rise in underlying EBITDA .When a company's profit is growing faster than its revenue that means its, either from reduced costs or price increases — although price rises that don't result in losing customers would show up in headline revenue growth as well.
Digging a bit deeper into the results announcement, Telstra increased its mobile revenue by 8.3%, but the number of retail mobile services only rose 1.7%, so it's— basically revenue minus the cost of providing the service —, with the majority of that improvement coming in the second half . Telstra itself notes that average revenue per user for postpaid customers rose from $48.53 to $51.15Pre-paid mobile saw a 16.5% surge in revenue, with a 9.4% rise in ARPU.Although margins to bigger businesses and wholesale to other telcos fell slightly.on the $500 million on the net fixed costs it planned to take out of the business over the two financial years from FY 2023 to FY 2025.
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