ASX 200 down 0.4%: Xero sinks, Telstra hit with $50m fine

Telstra Corporation Ltd (ASX:TLS) and Xero Limited (ASX:XRO) shares are among the movers and shakers on the ASX 200 on Thursday…

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At lunch on Thursday, the S&P/ASX 200 Index (ASX: XJO) is on course to record another decline. The benchmark index is currently down 0.4% to 7,016.6 points.

Here's what is happening on the market today:

A share market investment manager monitors share price movements on his mobile phone and laptop

Image source: Getty Images

Xero sinks following full year results

The Xero Limited (ASX: XRO) share price is sinking following the release of its full year results. For the 12 months ended 31 March, Xero reported an 18% increase in revenue to NZ$848.8 million and a 39% jump in EBITDA to NZ$191.2 million. This compares to the market consensus estimate of NZ$854 million and NZ$228 million, respectively. In addition to this revenue and earnings miss, weakness in the tech sector is also likely to be weighing on its shares.

Telstra hit with $50 million fine

The Telstra Corporation Ltd (ASX: TLS) share price is trading broadly flat today despite being dealt a $50 million penalty by the Federal Court. This penalty was in relation to its treatment of Indigenous customers in rural and remote parts of Australia. This follows the telco giant previously admitting that it had acted unconscionably towards 108 customers across five Telstra-branded stores, by selling them phone plans that they could neither afford nor understand.

Pro Medicus contract win

The Pro Medicus Limited (ASX: PME) share price is trading higher today after announcing a major new contract win. The healthcare technology company has signed an 8-year deal with The University of Vermont Health Network worth $14 million. The deal will see Pro Medicus provide a unified diagnostic imaging platform that will run across its network. This replaces the existing multiple legacy PACS platforms that are currently being used.

Best and worst ASX 200 performers

The best performer on the ASX 200 today has been the Ausnet Services Ltd (ASX: AST) share price with a 4% gain. This morning analysts at Goldman Sachs put a buy rating and $2.15 price target on its shares. The worst performer has been the Xero share price with a 7% decline following its results release.

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of and recommends Pro Medicus Ltd. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Xero. The Motley Fool Australia owns shares of and has recommended Telstra Limited. The Motley Fool Australia has recommended Pro Medicus Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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