TelstraClear has released its financial results for the six months ending on 31 December 2011, which show a reduction in revenue and an increase in capital expenditure. TelstraClear says it had a total income of $339 million (compared with $353 million in the same period 2010), against operating expenses of $270 million (compared with $291 million in 2010).
Earnings before interest, tax, depreciation, and amortisation (EBITDA) were $69 million, while earnings before interest and taxation (EBIT) came to $1 million.
In a statement released by the company, CFO Alex Ball says the company is pleased with the results inspite of significant challenges in 2011.
"Given the current economic conditions, highly competitive telecommunications market, and recent natural disasters, we're pleased with the financial results," says Ball.
He attributes the revenue reduction on the impact of the general economy and higher levels of bad and doubtful debt. The expenditure increase was mainly due to the investment in rebuilding Christchurch's network infrastructure following last year's earthquakes, Ball says.
TelstraClear standalone financial results for half-year ended 31 December:
Total income $339m (2011) $353m (2010) -4 percent change
Operating expenses (excluding depreciation and amortisation) $270m (2011) $291m (2010) -7.2 percent change
EBITDA $69m (2011) $62m (2010) +11.3 percent change
Depreciation and amortisation $68m (2011) $70m (2010) -2.9 percent change
EBIT $1m (2011) -$8m (2010)
Capital expenditure $37m (2011) $36m (2010) +2.8 percent change
EBITDA margin on sales revenue 20.4 percent (2011) 17.6 percent (2010) +2.8 percent change