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FINANCIAL REPORT ON TELSTRA CORPORATION LTD
ACC 303
By: ATIT NEUPANE
Executive Summary
In this analysis we will consider a listed company of the Australian stock exchange to discuss and evaluate the share price of the past two years and how the share prices were impacted by the various news and events during this time. For this we have taken a telecommunication company Telstra Corporation Ltd. which is the largest telecommunication and Network Company providing mobile, broadband, television and fixed lines services across Australia. The other competitors of Telstra are Welcomm Communication Ltd, 3U Holding AG, Anywhere Sim and Lebara. With the telecommunication industry in Australia already mature, all the telecom operators are converting their networks to 5G services. Hence, telecom operators are trying to replace NBN speed network with the newly introduced 5G service. Here we have tried to analyse how Telstra shares performed from 1st January 2018 till 1st December 2019 depending on various media news and company events and information. For this we have taken monthly historical share price from yahoo finance and tried to analyse the returns for these 2 years. Based on the results we found that there was rarely any change in the share price of Telstra and it is currently in consolidation phase.
Table of Content
Introduction………………………………………………………………….Pg 1
Analysis………………………………………………………………………Pg 1 to 4
Conclusion………………………………………………………………........Pg 5
Recommendations…………………………………………………………….Pg 5
Appendix………………………………………………………………...........Pg 5 & 6
(i) Appendix 1.1
(ii) Appendix 1.2
References………………………………………………………………..........Pg 7
Introduction
Telstra Corporation Ltd. is an Australian network and communication company providing its network via telephone, mobiles, internet and television. It is the largest telecommunication company in Australia and is a listed company on the Australian Stock exchange. The company was founded on 1st July 1975 and presently managed by Chairman Andy Penn. The company was initially formed in 1901 by Post master General’s department in Australia. The company wants to revamp its network from 4G to 5G and become the leader in the telecommunication industry in Australia. We will discuss the performance of the company based on its share price for the past two years which are controlled by various information and news.
Analysis
The above chart is the Telstra Corporation Ltd. share price per month for a period of two years from 1st January, 2018 till 1st December 2019. We will analysis the share price on a monthly basis and link it with the various company events and information that have impacted the share prices to rise and fall.
We can observe there has been a fall in the share price each month from 1st January 2018 till 1st July 2018. Although during this period there were major events which have impacted the share price of Telstra.
On 2nd February 2018, Telstra declared to make noncash impairment of $273 million of the goodwill of Ooyala which they acquired in 2012 with a stake of 9% and in 2014 they bought Ooyala’s 98% of the stake.
On 15th February 2018, Telstra declared its financial results for the 31st December 2017 half yearly. On the same day it declare dividend of AUD$ 0.11000000 or 11% per share. The dividend was much lesser than the dividend it declared 17th August 2017 at 0.15500000. This impacted the potential investors and the shareholders of the company.
On the same day there was a media release in which Telstra declared that there was a increase of 5.9% in its Net Income but the EBITDA was hit badly and was down by -2.5% in 2018 compared to the same period in the previous year. This has impacted the Net profit after tax which was made positive by impairing the Goodwill of Ooyala. Also, the Earnings per...