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Telstra sees profit plunge 40% for full year

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Image: Asha Barbaschow/ZDNet

Telstra has once again pinned the National Broadband Network (NBN) as the cause of a drop in profitability, claiming it is responsible for AU$600 million in negative earnings before interest, tax, depreciation, and amortisation (EBITDA).

In its results released on Thursday, Telstra said the cost to it from the NBN was now AU$1.7 billion in total, and that it has only seen half of the impact.

Overall for the company, revenue was down 3.6% to AU$27.8 billion compared to last year, EBITDA shrunk 21.7% to AU$8 billion, and net profit was cut by 40% to AU$2.1 billion.

Excluding costs from job cutting, Telstra said its EBITDA was down 11.4% to AU$9.4 billion.

“While the reported financial trends in FY19 were challenging, underlying trends are expected to improve over the course of FY20,” the company said.

Broken down by division, Telstra’s infrastructure arm InfraCo recorded AU$4.95 billion in revenue, a drop of AU$489 million, and EBITDA of AU$3.2 billion, down AU$163 million. Mobile grew revenue by 1.6% to AU$10.5 million, while EBITDA fell 8.7% to AU$3.58 billion.

Fixed-line saw revenue drop by 9.4% to AU$5.2 billion, and EBITDA fall by AU$500 million to AU$790 million. Data and IP had a 7.7% revenue drop to AU$2.4 billion, while EBITDA shrank 9% to AU$1.49 billion. Network services reported a 4% revenue drop to AU$3.48 billion while EBITDA fell 9.3% to AU$331 million.

The telco’s global connectivity business experienced a 8.3% increase in revenue to AU$1.7 billion, and a AU$37 million increase in revenue to AU$330 million.

Telstra is forecasting revenue of AU$25.7 billion to AU$27.7 billion for next year, with EBITDA between AU$7.3 billion to AU$7.8 billion, restructuring costs of AU$300 million, and NBN one-off payments of between AU$1.6 billion to AU$2 billion, with the government-owned network to cut Telstra’s EBITDA by between AU$800 million to AU$1 billion.

“We have made good progress on our commitment to remove hierarchies and silos and have redesigned our organisation from the ground up. We have already removed three management layers and are on track to reduce up to four management layers in the organisation,” Telstra CEO Andy Penn said.

“Around 75% of the net 8,000 direct workforce role reductions we announced as part of our T22 strategy have now been identified. We have also made progress creating 1,500 new roles in areas like cybersecurity and software engineering.”

Total restructuring costs for the year totalled AU$800 million.

See also: Telstra2022: Key takeaways from Telstra’s new strategy

Over recent weeks, NBN and Telstra have engaged in a round of finger pointing over which company is responsible for money disappearing from which company’s balance sheet.

In July, NBN struck out at Telstra’s complaints that the connectivity virtual circuit (CVC) charge that NBN puts on bandwidth needed to be scrapped and wholesale prices to be cut by AU$20.

Penn said at the time it was unprofitable for retailers to resell the NBN at current prices.

“An industry where wholesale prices result in zero margins for the downstream retail providers is unsustainable,” Penn said.

“It will result in higher retail prices, reduced competition and retail providers looking for ways to bypass the NBN altogether — which is bad for customers and bad for the industry.”

NBN CEO Stephen Rue hit back describing the wholesale price debate as “the industry gnashing about NBN Co’s pricing model”.

Rue said it should be remembered that NBN is serving the entire country, and it is not just about capital costs, but also the ongoing costs required to keep it running.

“Let’s not forget that the sum of all NBN Co payments to Telstra was around AU$2 billion this year,” Rue said.

“Our Corporate Plan points to a continuing payment to Telstra for access to ducts, dark fibre and facilities of AU$1 billion annually from FY21, representing 20% of forecast revenues, and continuing for decades after the build is completed.

“This has an obvious impact on wholesale prices.”

In explaining the results on Thursday, Penn said the NBN payments do not leave the company better off, saying Telstra’s results prove this point, and rejected calls that the telco was the reason behind high wholesale prices.

“These payments to Telstra have actually helped keep the cost of the NBN down,” Penn said. 

“Without access to our very extensive network — all the exchanges, fibre, ducts, pits and pipes — NBN Co would have had to build this infrastructure from scratch at a higher cost and longer build time.”

Telstra said it had reached an agreement to sell three of its data centres in Europe and Asia for AU$160 million to private equity group I-Squared Capital, the owners of Hong Kong telco Hutchison. The deal is expected to be completed in the first half of fiscal year 2020, and will see Telstra make AU$110 million on the sale.

In terms of customers, the telco added 378,000 postpaid services in the year to June 30, with its total customers now sitting at 8.2 million. Total wholesale mobile services is now over 1.2 million thanks to virtual operators adding 230,000 services this year.

The telco added 659,000 NBN customers during the year.

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Here’s How Long A Tesla Model Y Battery Will Actually Last

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Many of us have found ourselves at the side of the road waiting for someone to arrive with a gas can to fill our empty tank. Pushing your gasoline-powered engine too far when the gauge is reading “E” will do that. And like pushing your luck with these types of vehicles, you’ll find yourself in a similar situation with an all-electric model if you aren’t planning your journey with care, requiring roadside assistance or an emergency charging solution.

The Tesla Model Y is equipped with a long-range battery that will last you a full day on the road in the vast majority of situations. If you are driving the Performance Model Y, this vehicle will carry you an average of 303 miles on a full charge, according to Tesla. Should you be considering the Long-Range Model Y, you can expect the battery to last longer, getting 330 miles on the same charge. 

By charging the EV overnight when you are finished, you’ll have a fully charged battery to begin your day, assuming you have a home charger. And if you are running low on juice, you’ll find over 35,000 Tesla Supercharging Stations around the world, around 1,400 of which are in the United States, according to the latest data from Scrape Hero. Plug your Model Y into one of these spots and Tesla says on its website that you can expect to get around 200 miles of range after 15 minutes of charging.

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The Most Luxurious Features Of Leonardo DiCaprio’s $1.5 Million Motorhome

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The features inside DiCaprio’s trailer are over-the-top, to say the least. It is 53-feet-long with four slide-out sections that can extend from 400 to 700 square feet at the touch of a button (via The Sun). According to Rovsek, it is the largest and most luxurious motorhome in the entire fleet.

It comes equipped with two fireplaces (in case one was not enough), and state-of-the-art technology including seven TV screens throughout the entire trailer. The motor home features mirror-covered ceilings and heated marble floors in the bathrooms, living room, and kitchen. It also features a wine bar and heated marble floors, according to Bloomberg Quicktake.

Surprisingly, the crown jewel in this upscale trailer is not the lounge area or the master bedroom. Instead, it is a custom-designed £40,000 walk-in shower. The shower was reportedly made with recycled glass and took craftsmen two weeks to install (via The Sun). 

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Here’s The Easiest Way To Scan Your Android Phone For Viruses

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There’s a common misconception about smartphones, and it’s a dangerous one: many people believe they don’t need to worry about viruses, spyware, and malware when they’re using a phone. If only that were true! Unfortunately, there are tons of smartphone viruses out there, and it’s more important than ever to try to protect yourself. After all, it’s not uncommon for our phones to hold access to some of our most private data, including passwords, messages, and even bank accounts. If you want to stay safe, it’s a good idea to scan your phone with an antivirus app.

You might often hear about various computer hacks and exploits, but when it comes to smartphones, things are usually pretty quiet — but that’s not due to a lack of malicious software. According to AVTest, the number of Android malware is steadily growing. In 2021, the company registered 3.28 million instances of Android-specific malware, and there might very well be many more in reality. Even if you’re normally careful, it’s important to go the extra mile if you want to secure your phone alongside some of your most important data.

Remember that even phones that come with various protective measures from the get-go, such as the Samsung Galaxy handsets, can become compromised. If you already have an antivirus app on your phone, make sure to use it regularly. However, if you don’t or you do but you’re looking to switch to something else, read on to see some of the options available.

Popular antivirus apps for Android

Much like there are plenty of viruses that affect Android phones, there are also lots of antivirus apps that might seem great at first glance. However, upon closer inspection, some of them are riddled with ads and don’t actually do much to help you stay protected. When you search for the right app to suit your needs, some of them will be free and some will require an upfront payment or a monthly subscription. Here are some of the most popular options (based on download numbers and ratings) for you to explore.

  • BitDefender for Android: You can use the free version of this app that will passively protect your phone as well as allow scanning for viruses, but you can also pay to use the full-fledged version that expands the security and adds VPN access.
  • Avast One Essential: Avast is a well-known antivirus company in the PC space, but it also has a popular Android app. You can use the app for free to receive virus protection and a small amount of VPN bandwidth, but there’s a premium option too — and, unfortunately, the app will constantly remind you of that fact.
  • Norton 360: This is yet another PC giant that made its way to Android. Norton doesn’t offer a free version of its app, but if you’re willing to pay for it, you will get a number of features, including an ad blocker and a Wi-Fi analysis tool. The app costs $14.99 per year for the first year and then goes up to $30 per year.
  • Kaspersky for Android: This is a solid antivirus option even if you use the free version, but unfortunately, you only get real-time protection if you pay $15 per year for the premium version.

Pick the app that best suits your needs, download it from the Google Play Store, and install it onto your Android smartphone or tablet.

How to use antivirus software on Android

Each of the apps mentioned above should provide you with enough protection to not have to worry about Android viruses too much. Whether you chose a paid or a free version, you will have access to a tool that will scan your phone for malicious software. You should do this periodically. Doing so every couple of weeks is a safe approach, especially if you use your phone often. Make it a habit to always run a scan if you accidentally find yourself clicking a link that doesn’t seem all too trustworthy, too. We’ll now give you a quick rundown of what to do with your new antivirus app.

  1. Pick your app and install it through the Google Play Store. 
  2. You will most likely have to register an account to use the app.
  3. If you are picking a paid option, pay for your chosen service.
  4. Each of the apps will offer to scan your phone as the first step after set-up. This will check all of the apps on your phone and your storage for viruses.
  5. Once the scan is concluded, you can review the results. If any viruses were found, you’ll be told where they were. Remove all of them through the app.
  6. Go into the app settings and look for options to set up regular scanning. Depending on the app, you may also be offered real-time protection, which will run in the background as you use your phone.

Make sure to repeat these scans every so often. After you’ve had the chance to familiarize yourself with the free version of the antivirus product, you might want to consider upgrading. In the case of BitDefender and Avast, it’s most likely going to be worth it — especially if you want to regularly use a VPN and don’t already subscribe to one.

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