Telstra is expecting little to no sales growth in 2009/10, off the back of a higher local currency and stronger competition.
In a statement, Melbourne-based Telstra said the strength of the Australian dollar, tough operating conditions in Hong Kong, and strong domestic competition driven by ULL (unconditional local loop) growth and very competitive mobile offers had forced the cut in forecast revenue.
“Following the continuation of trends seen in the second half of fiscal 2009, Telstra now expects sales revenue in fiscal year 2010 to be flattish compared to fiscal year 2009,” the company said. “We expect negative sales revenues in the first half of the fiscal year for the reasons above.”
Shares in Telstra slipped 12 cents, or 3.38 percent, to $3.43 as of 12.58pm AEDT today from yesterday’s four-month high close after the company cut the previous guidance of low single-digit growth.