Telstra results analysis 2000-2001

Synopsis

Telstra’s profit for 2000/2001 was a huge success. Telstra will deliver a $1.2 billion dividend to the Australian government. However, the profit was made despite an overall fall in sales revenues of 3.4%. It included several non-sales non-recurring windfalls of around $1 billion. The profits are not due to increasing business, but to continuing costs cutting, and there comes a time when this well runs dry. Despite its present wealth, Telstra has failed to invest this wealth wisely and there are currently no signs that this will change. Whilst making disastrous investments overseas, it is squeezing investments in its local network, an area that has been responsible for delivering the company’s positive results for a hundred years.