Shareholders in mobile and internet services provider Telstra Corporation Ltd (ASX: TLS) won't be happy to here the telco warn that the mounting mess at the NBN Company could impact its profits more-than-expected in FY 2018.
It's the NBN Company's decision to cease sales of hybrid fibre co-axial (HFC) technology "for six to nine months from 11 December 2017" that Telstra claims may impact its "outlook for FY18".
It's being reported that the HFC halt may delay the substantial payments Telstra is due to receive from the NBN Co. in compensation for having its copper network of internet connectivity replaced by the NBN's fibre network.
Credit Suisse recently reported that around 18 per cent of Telstra's market cap is held by SMSF investors, who favour the stock for its supposed defensive nature and reliable income streams.
However, the stock's 33% share price drop over 2017 and plunging dividends will leave much of the SMSF army high, dry, and unimpressed over the rollout of the NBN network.
Telstra now plans to payout just 22 cents per share in dividends over fiscal 2018 and its pipedreams to monetise its NBN payments for a greater rate of return have also been shot down by the NBN itself.
Telstra shares are down 1% to $3.45 in lunchtime trade, while NBN bashed-up junior rivals TPG Telecom Ltd (ASX: TPM) and Vocus Group Ltd (ASX: VOC) have advanced 1% and 3% respectively.
