Telstra reports strong financials, NPS lift

ASX-listed telco's CEO says strategic and episodic Net Promoter Scores have increased, proof that its customer experience efforts are working

Telstra CEO Andrew Penn
Telstra CEO Andrew Penn

A lift in episodic as well as strategic Net Promoter Scores (NPS) is proof Telstra is acting on its number one objectives of putting customers first, CEO, Andy Penn, claims.

The ASX-listed telco Telstra reported strong results for the financial year, with total income up 4.3 per cent to $28.2 billion, or 5.9 per cent excluding regulatory changes. EBITDA also increased 2 per cent to $10.7bn on a reported basis and 4.5 per cent on a guidance basis, bringing net profits after tax to $3.9bn.

Following a dip in its NPS results in the first half, Telstra CEO, Andrew Penn, said he was pleased to report both numbers increased in its full-year results. Strategic NPS was up 6 points over the past six months, although flat compared to June 2016, while episodic NPS was up 2 points over the past six months and 3 points compared to this time last year.

Penn highlighted mobile as a strong segment, noting a modest increase in mobile services revenues over the second half, along with a reduction in post-paid handheld churn. Total mobile revenue however was down 0.2 per cent to $10.1bn, although mobile EBITDA margins held at a solid 43 per cent. New mobile services were up 218,000, including 169,000 post-paid handhelds.

Telstra reported continued customer growth across all key segments, with retail fixed broadband services up 312,000 and retail bundles up 224,000. Today, nearly 90 per cent of the telco’s retail fixed broadband customers are on a bundle. The percentage of those on an entertainment bundle grew by over 50 per cent over the last year 12 months to represent one-third of all bundles.

NBN was another solid performer, and Telstra added 676,000 new connections over the past year, bringing its line-based NBN market share to 52 per cent.

“We have delivered against our guidance and strategy in the context of a highly competitive and dynamic market,” Penn said during his presentation.

Telstra is investing $3 billion of incremental capex as part of efforts to improve the customer experience through a network upgrades as well as digitisation of systems and interactions.

Network infrastructure has been the core focus of early investment, prompted by a number of high-profile service failures last year. About $750m has been sent so far on extending Telstra’s 4GX rollout, laying the foundation for a 5G network, improving resiliency and redundancy, and improving ADSL speeds to better cope with video content.

Total capex over the three years to June 2019 is expected to exceed $15 billion, delivering an annual financial benefit of at least $500m by FY21, the company stated.

New products on offer to customers include a programmable network for enterprise clients, and Telstra TV2 for retail customers, a single device that allows users to search free to air TV, catch-up and streaming services. Penn said a TV mobile app to accompany the device will also give users a linked experience at home or while mobile and personalise based on each customer’s usage patterns.

“In media, Telstra TV has now reached almost 1 million customers with a very high NPS and strong activation and usage rates,” he commented. “This is transforming the media experience in the home and we are about to dial it up again.”

Penn also noted the work done to reposition the Telstra brand under its ‘brand 3.0’ initiative headed by Joe Pollard.

“When asked about Telstra as a provider of world-leading technology solutions, Telstra’s brand perception increased 8 per cent, 10 per cent and 27 per cent respectively in consumer, SME and enterprise over the last 12 months,” he said.

Moving forward, Telstra’s list of priorities include extending its Belong Mobile offering to the price sensitive market, keeping up with digital disruption, and capitalising on the rapid rollout of the NBN.

Penn also flagged adtech as an area of growth among Telstra’s technology innovation efforts, and noted its ventures arm invested more than $300m in 45 technology startups. Its Muru-D accelerator, meanwhile, has helped launch 77 new businesses.

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 newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.
Show Comments

Blog Posts

Building a human-curated brand

If the FANG (Facebook, Amazon, Netflix, Google) sector and their measured worth are the final argument for the successful 21st Century model, then they are beyond reproach. Fine-tuning masses of algorithms to reduce human touchpoints and deliver wild returns to investors—all with workforces infinitesimally small compared to the giants of the 20th Century—has been proven out.

Will Smith

Co-founder and head of new markets, The Plum Guide

Sustainability trends brands can expect in 2020

​Marketers have made strides this year in sustainability with the number of brands rallying behind the Not Business As Usual alliance for action against climate change being a sign of the times. While sustainability efforts have gained momentum this year, 2020 is shaping up to be the year brands are really held accountable for their work in this area.

Ben King

CSR manager & sustainability expert, Finder

The trouble with Scotty from Marketing

As a Marketer, the ‘Scotty from Marketing’ meme troubles me.

Natalie Robinson

Director of marketing and communications, Melbourne Polytechnic

It's a pretty interesting article to read. I will learn more about this company later.

Dan Bullock

40 staff and 1000 contracts affected as foodora closes its Australian operations

Read more

If you think it can benefit both consumer and seller then it would be great

Simon Bird

Why Ford is counting on the Internet of Things to drive customer engagement

Read more

It's a good idea. Customers really should control their data. Now I understand why it's important.

Elvin Huntsberry

Salesforce CMO: Modern marketers have an obligation to give customers control of their data

Read more

Instagram changes algorithms every time you get used to them. It really pisses me off. What else pisses me off? The fact that Instagram d...

Nickwood

Instagram loses the like in Australia; industry reacts positively

Read more

I tried www.analisa.io to see my Instagram Insight

Dina Rahmawati

7 marketing technology predictions for 2016

Read more

Latest Podcast

More podcasts

Sign in