'On Track' Telstra Revs Up Media Biz
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Hello Digital: Telstra launch media arm as revels in its September quarter growth spurt. Telstra has enjoyed “strong” sales momentum and is on track to achieve its guidance of low single digit percentage growth in total revenue and EBITDA, CEO David Thodey said today.


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Speaking at its annual update for institutional investors today, Mr Thodey said the September quarter saw the telco grow its mobile and fixed broadband customer base.

But the real news was the launch of Telstra ‘Digital Media’ business, which will see BigPond, Trading Post, IPTV, FOXTEL and Sensis, all shoved into one single unit as it looks to expand this lucrative content sector.

Telstra are also pumping $100 million to upgrade its media infrastructure to deliver “broadcast-quality video streaming services over any device” on the web.

This move will increase focus, drive new opportunities and better utilise its matrix of media assets.

“As digital media and video content continues to grow it is important that we build network infrastructure to meet this demand.  We will also continue to integrate this content, making it available to our customers across multiple channels including mobiles, tablets, home entertainment systems and the internet,” Mr Thodey said.

Digital Media will be headed by Rick Ellis, former chief executive of Television New Zealand.

“I am delighted that Rick Ellis, a media executive with vast experience and strong networks, will be leading our media strategy,” Mr Thodey said.

Telstra is also  making”substantial progress” implementing its strategy first unveiled more than a year ago: to add customers, improve customer satisfaction, target opportunities in Asia, part of its $1bn ‘Telstra New’ makeover strategy.

“Our strategy is unchanged and our focus remains on execution. Already our customers are reporting higher satisfaction levels as we make the business less complex and easier to deal with,” Mr Thodey said.

And its service is improving, with 28% fewer incoming calls to customer call centres, and 70% more self-service transactions online.

 

Thodey noted there had been a shift in the mix of growth expected in fiscal 2012, including rapid fall of Sensis and Yellow print directories due to lower than expected take-up of digital products by SMEs.  

However, mobiles, fixed broadband and network services were on the up, offsetting poor performance elsewhere.

“Our strong performance in core and growth businesses, coupled with strong mobile profitability and productivity improvements, means Telstra remains on track to meet guidance for fiscal 2012,” Thodey concluded.