Telstra results for the year ended 30 June 2013

Thursday, August 8th, 2013
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168,000 T-BOXs sold this FY; 512,000 sold to date

MELBOURNE, Australia — Telstra Corporation Limited has released its financial results and annual report for the year ended 30 June 2013.

TV revenue, which includes Premium Pay TV and IPTV, remained stable at $666 million. The decline in the number of customers on the premium service was offset by growth in IPTV, namely T-Box® sales and Foxtel on T-Box® offerings.

Premium PayTV, where FOXTEL premium services are resold through Telstra, was down 1.2% to $595m. Paylite includes the more strategically important revenues from bundling T-BOX and FOXTEL in conjunction with BigPond Movie services. During the year we sold a further 168,000 T-Boxes bringing the total units in the market to more than half a million and in May we launched our entertainment bundles which we expect to support future growth. These initiatives helped grow revenue from Paylite up 11.3% to $71m offsetting the reduction in Premium PayTV.

                            FY12     FY13  Growth
                         -------  -------  ------
PayTV                      $666m    $666m    0.0%
 Premium(1)                $602m    $595m   -1.2%
 Paylite(2)                 $64m     $71m   11.3%

1. Premium PayTV revenue comprises FOXTEL from Telstra sales
2. Paylite revenue comprises sales of T-BOX, FOXTEL on T-BOX and BigPond Movies services

Services in operation (SIOs):

                                    Half year ended  Jun 13 vs Jun 12  Jun 13 vs Dec 12
                       ----------------------------  ----------------  ----------------
                       Jun 2013  Dec 2012  Jun 2012   Change   Change   Change   Change
                         ('000)    ('000)    ('000)   ('000)        %   ('000)        %
                       --------  --------  --------  -------  -------  -------  -------
Pay TV bundling SIOs        500       507       501      (1)    (0.2)      (7)    (1.4)

T-Hub® Sales*               519       456       360      159    44.2        63     13.8
T-Box® Sales*               563       456       388      175    45.1       107     23.5

* Units sold are life to date.

Foxtel

FOXTEL had its first full year including the acquisition of Austar. Revenue was up 3.9% to $3.1bn compared to 2012 on a proforma basis. This was supported by a 3.4% increase in subscribers to 2.5m, largely due to improvements in churn rates which were down 2 percentage points to 14.2%. We also saw good growth in IP subscribers.

                         FY12(1)     FY13  Growth
                         -------  -------  ------
Revenue                  $2,955m  $3,071m    3.9%
Total subscribers(2)      2,399k   2,481k    3.4%
Churn                      16.2%    14.2%    -2pp

1. Proforma Foxtel + Austar after eliminations
2. Commercial subscribers reported on a residential equivalent subscriber basis