Question 1

How quickly is the 5G network expanding and is there actual consumer demand?

Accepted Answer

Telstra has already deployed 2,250 sites reaching 44% of the Australian population, with a target to hit 75% coverage by the end of FY21. Market demand is evident as the network is currently adding 40,000 new 5G devices every week.

Question 2

What is the financial roadmap for maintaining current dividend levels?

Accepted Answer

To support the 16-cent dividend policy, the company is targeting an underlying EBITDA of $7.5-$8.5 billion by FY23, up from $7.4 billion in FY20. This strategy relies on a disciplined 12% Capex to Sales ratio and a return to growth in the Enterprise segment by FY22.

Question 3

What does the corporate restructure mean for infrastructure assets?

Accepted Answer

The business will be split into InfraCo Fixed, InfraCo Towers, and ServeCo to better commercialize core assets. A primary objective is to increase the mobile tower tenancy ratio from the current 1.34 to a more competitive 1.5-1.6 range.

Question 4

Is the expansion into the energy sector supported by consumer data?

Accepted Answer

Market research confirms that 33% of consumers would consider a mobile-utility bundle, providing a clear pathway for revenue diversification. This entry into energy is a key component of the strategy to bridge the gap to the FY23 EBITDA targets.

FY20 Investor Day – Telstra counting on its 5G leadership to improve revenues and margins

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