Customer advocacy pays off for Telstra with strong first-half result

ASX-listed telco chalks up hundreds of thousands of new retail fixed bundle and mobile customers in the first half of the 2016 financial year

An ongoing commitment to customer advocacy has seen Telstra chalk up hundreds of thousands of new retail fixed bundle and mobile customers in its first-half, its CEO says.

The ASX-listed telco released its financial results for the six months to 31 December 2015 today, announcing a 9.1 per cent rise in total income to $14.2bn. Reported EBITDA increased by 1.7 per cent to $5.4bn, and net profits rose just under 1 per cent to $2.1bn. The results include operating results from Pacnet, which Telstra acquired in April last year. Excluding Pacnet, Telstra saw a 7.3 per cent rise in total income to $14bn.

The telco added 235,000 domestic retail mobile services in the six-month period, to 16.9 million, along with 121,000 retail fixed broadband customers and 163,000 retail fixed bundle customers.

In a statement, Telstra CEO, Andrew Penn, reiterated customer advocacy as the single most important driver of the telco’s strategy, and said it would only be achieved through world-class customer service, technology, networks and delivery.

The half-year results reflect the emphasis on customer, along with efforts to drive value and growth from core businesses, and creating value for shareholders, he said.

As a result of its customer experience efforts, Telstra said its Net Promoter System (NPS) result was three points higher than in the first half of FY2015. The telco also delivered 1.6 million customer rewards via its Telstra Thanks customer loyalty program during the first half, an increase of 20 per cent year-on-year.

Other productivity-led customer metrics noted in the telco’s financial result included a decline in overall inbound call volumes of 7 per cent, a lift in first-call resolution rates from 81 to 83 per cent year-on-year, and rise in online self-service assurance interactions from 150,000 to 1 million between first-half 2015 and first-half 2016.

“Our results have been achieved against increased mobile competition and acceleration in the National Broadband Network multi-technology model roll out,” Penn said. “We have continued to innovate and develop products and services to meet changing customer preferences and expectations in our fixed and mobile businesses.”

Recent network enhancements include extension of Telstra’s 4G footprint nationally for more reliable services, as well as the launch of its first voice over LTE services in September, which have seen been taken up by 130,000 customers. Telstra Air, a roaming connectivity service, also saw significant customer subscriber growth.

“We are actively working to simplify our business, drive down costs and help our customers experience what technology can do for their lives and businesses,” Penn added.

In his presentation to the market, Penn also acknowledged Telstra’s network outage last week, which impacted about 15 per cent of mobile customers for about two hours and has been attributed to human error. As compensation, the telco offered a free data day to customers on its mobile network (Sunday) and saw a record-breaking 2000TB of data consumed across the network in a single day.

“Customer advocacy is our number one priority as a company. It is my number one priority,” Penn continued. “That means our customers are at the heart of everything we do.

“I personally spend time every day reviewing customer feedback. While I am encouraged that the number of complaints we receive is reducing, I know we still have much to do.”

On the mobile front, key financial results for Telstra included a 3.7 per cent increase in mobile revenue to $5.5bn, as well as 80,000 new post-paid handheld customers and reduced mobile churn rates (10.7 per cent). Telstra also reported mobile network data growth of 42 per cent, as well as 118,000 new BNB connections, lifting total subscriber figures to 329,000.

As a result, Telstra left its guidance for the full-year 2016 unchanged, which includes mid-single digit income and EDBITA growth.

Follow CMO on Twitter: @CMOAustralia, take part in the CMO conversation on LinkedIn: CMO ANZ, join us on Facebook: https://www.facebook.com/CMOAustralia, or check us out on Google+: google.com/+CmoAu

Join the CMO newsletter!

Error: Please check your email address.
Show Comments

Supporting Association

Blog Posts

Behaviour change, by design

​We’re living in an age of unprecedented change. We experience with Oculus Rift, invest with Acorns, consume video through Hyper, tune into Pandora and navigate with Waze.

Glen Jeffreys

Head of UX, Deepend Group

Chat bots: How to use them commercially right now

I’m sure that many of you out there have heard a lot about chat bots (aka messaging bots) recently, and the fact that they are here to stay is pretty evident by now.

Deniz Nalbantoglu

Managing director, Webling-Interactive

Top tips to uncovering consumer insights for business innovation

An in-depth understanding of consumers sits at the heart of what we all need to do, but we know it’s not always easy to uncover insights that will unlock a true innovation opportunity.

Matt Whale

Managing director, How To Impact

There is a new digital capture tool called QuickTrials app (www.quicktrials.com) that allows people who conduct Field Trials to collect t...

Quick Trials

How a new digital and data strategy for agriculture is helping farmers innovate

Read more

Recommendation engine is a great example of AI / ML.

Francis Kim

Chat bots: How to use them commercially right now - Big data delivery - CMO Australia

Read more

This new logo is offensively bad! And stop flashing it at us in between points on the television coverage. Trying to subliminally program...

Simon

Tennis Australia unwraps new brand identity for Australian Open

Read more

Thanks, Nadia. It was so interesting blog for me because it helps me able to understand well on the basics of business and marketing conc...

MichaelBGreen

3 ways marketers can raise their executive influence

Read more

Having been to the AO on Wednesday for the first time in a number of years I was very impressed with the new branding. The event has evol...

Naomi

Tennis Australia unwraps new brand identity for Australian Open

Read more

Latest Podcast

More podcasts

Sign in