Telstra Corporation is expected to report a double-digit increase in first half profit as the telco grows market share, particularly in mobile, and keeps costs in check.
Market expectations were for Telstra to report net profit of $1.518 billion for the six months to December 31, 2011, according to consensus forecasts.
If the result prints in line with market expectations, it would be up 27 per cent from the $1.194 billion net profit achieved in the prior corresponding period.
Telstra was scheduled to release its first half results on Thursday.
In terms of company guidance, Telstra said in November last year it was on track to achieve low single digit percentage growth in total revenue and earnings before interest, tax, depreciation and amortisation (EBITDA).
Telstra also reaffirmed previous guidance for a 28 cents per share full year dividend.
“We do not anticipate any change to FY12 guidance,” CBA equities analysts Alice Bennett, Nathan Burley and James Xavier said in a research note.
Mr Thodey said at the telco’s investor day in November, there had been a shift in the mix of growth expected in 2011/12.
The company’s directories business Sensis had experienced lower than expected takeup of digital products, he said, while the mobile, fixed broadband and network-based applications and services had performed better than expected.
Investors were also keen to hear more from the nation’s largest telco regarding the recent Federal Court decision which gave the green light for rival Optus to continue to offer its TV Now service.
The decision from Justice Stephen Rares, has according to some media experts put in doubt Telstra’s $153 million, five-year deal for the online and mobile rights for Australian Football League (AFL) matches.
The service gave Optus customers the ability to record free-to-air programs, such as AFL games, and watch them on a slight delay.
AFL chief executive Andrew Demetriou said the league would appeal the judgement to protect its broadcast rights.
“We will do everything in our power, everything, to make sure that we protect our content, because that’s what it is, it’s ours,” Mr Demetriou said on February 2.
Mr Demetriou said Telstra had indicated it would honour the five-year agreement.
Telstra closed up four cents at $3.38.