Australia's Telstra sees sharp upturn after weak first half

0 Comments | AFP, November, 2006

SYDNEY (AFP) — Australian telecom giant Telstra expects 37-40 percent growth in earnings before interest (EBIT) in the six months to June 2007 after a weak first half, the company's annual general meeting has been told. The current fiscal year will see the largest transformation for the troubled telco, chairman Donald McGauchie said Tuesday.

"As a result, we expect our first-half (to December 2006) EBIT to fall by 17 to 20 percent. However, we expect EBIT to grow in the second half in the range of 37-40 percent," he told shareholders. "Provided there are no further material adverse regulatory outcomes and we continue to be successful in implementing our transformation strategy, we expect our free cash flow to improve in fiscal 2008 compared with fiscal 2007." McGauchie said...