Telstra tour 2012


Telstra Corporation (ASX: TLS) chief executive David Thodey and chief financial officer Andrew Penn start the 2012 retail investor update tour in Sydney today, to be followed by dates in Darwin, Adelaide, Melbourne and Brisbane between today and Wednesday 26th.

The presentation highlights just how much we are all using networked connections today quoting some seriously mind-boggling figures such as:

  • 20 billion SMS worldwide a day
  • 300 billion emails worldwide a day
  • 45 hours of video content uploaded to YouTube a minute
  • 140,000 web searches a minute
  • More phones than people in the world by 2016
  • Data traffic set to increase 400% over the same period

On Telstra’s figures, the world is creating 1,700 TB of data per minute which, if we tried to use compact discs to store it all, would take a stack that grew at 1,350 kilometres an hour and circled three-quarters of the Earth every day!

Telstra emphasises that this growth creates opportunities for it with the expansion of the 4G mobile network and a renewed focus on customer satisfaction. Telstra recently said that it expects to cover two-thirds of Australia’s population by 2013 to put it well ahead of rivals Optus, owned by Singapore Telecommunications (ASX: SGT), and Vodaphone, half-owned by Hutchinson Telecommunications (ASX: HTA).

On the financial front, the headline numbers all showed growth and the $0.28 dividend payout continues to be maintained. The growth in the business is identified as coming from broadband, international, pay TV, and, above all, mobile where an amazing 13.8 million of us are Telstra customers.

Foolish takeaway

Telstra grew profits by 5.4% in the year which should well received by retail investors and re-assure them that the 7% plus yield is fully maintainable.

The additional 1.6 million mobile customers indicates that customer satisfaction is growing and the ever spreading use of more capable products such as the new iPhone 5 should see data volumes and revenues continue on their upward path.

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Motley Fool contributor Tony Reardon owns shares in Telstra. The Motley Fool‘s purpose is to help the world invest, better. Take Stock is The Motley Fool’s free investing newsletter. Packed with stock ideas and investing advice, it is essential reading for anyone looking to build and grow their wealth in the years ahead. Click here now to request your free subscription, whilst it’s still available. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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