Telstra has reported a lower-than-expected first half profit and reaffirmed earnings guidance for the full year amid what it describes as a difficult macroeconomic backdrop.
Australia's largest telco said net profit for the six months to December 31, 2011 rose 22.9 per cent to $1.468 billion compared to the prior corresponding period.
The result was below market consensus of $1.518 billion.
'Results for the first half of the year were in line with our expectations despite the difficult macro economic backdrop,' Telstra said in a statement on Thursday.
Earnings before interest, tax, depreciation and amortisation (EBITDA) rose 3.7 per cent to $4.75 billion, which was lower than market consensus of $4.819 billion.
Telstra said earnings guidance for low single digit revenue and EBITDA growth for the full 2011/12 year, as well as a 28-cent fully franked dividend, was unchanged.
Telstra said it added 958,000 mobile customers in Australia during the half, signed up 106,000 fixed broadband customers and 166,000 T-Box and T-Hub services.
'Last year we recorded one of our best years for customer growth,' Telstra chief executive David Thodey said in a statement.
'This momentum has continued into the first half of fiscal 2012.'
The fixed line business, however, continued to struggle, shedding 136,000 customers and a nine per cent decline in revenue to $2.49 billion.
Telstra reaffirmed its intention to consider a broader capital management strategy after implementation of its national broadband network agreements and the Australian Competition and Consumer Commission's (ACCC) approval of its structural separation undertaking.
The company said it was close to finalising the NBN transaction.
Telstra said sales revenue from its directories business Sensis declined by 24 per cent in the first half to $528 million.
Last year, Telstra said Sensis was underperforming and announced a three-year plan to arrest the slide in revenue and earnings and to cope with the loss of advertisers from its printed directories.
In November, Telstra said Sensis revenues so far in 2011/12 had been lower than anticipated and the business was expected to suffer a percentage decline in the high teens over the full year, with margins compressed.
Sensis, as well as Telstra's Bigpond, IPTV, Foxtel and Trading Post, have been consolidated into one division called Telstra Digital Media.
Telstra on Thursday said Sensis's first-half result was impacted by the upfront costs of the restructuring and an acceleration in the decline of its Yellow Pages print revenue as the market evolved more rapidly than expected.
'Since launching the strategy in March 2011, it has made progress in restructuring its operations to adapt to the challenges of the directories market,' Telstra said in its first half results.
Telstra said Sensis's first-half results were also impacted by the movement of the recognition of the Perth Yellow Pages book to the second half.
Senior Telstra executives were due to speak with analysts and media later on Thursday.
