The big telco announced last week it has written down by $273 million the value of Ooyala, its US-based intelligent video business, to zero despite substantial efforts over the past 18 months to improve the business performance.
Despite the dampener on the results from the Ooyala disaster, Telstra CEO Andy Penn said today the company was pleased with the strong performance for the half year but acknowledged this was achieved in a highly competitive market with increased competition for mobile and fixed services.
Releasing its half year results today, the big telco also cut dividends to 11 cents a share from 15.5 cents while reporting an increase in subscriber numbers on mobile and fixed.
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Telstra chief executive Andrew Penn at Thursday's results announcement.
“We need to do more and do faster. We have a deeper sense of great urgency and we’re stepping up against competition. We are absolutely focused on cost reduction and we will always continue to do more.
“We will accelerate our strategic investment program to build platforms for the future.”
Including the Ooyala impairment, Telstra reported total income for the six months to the end of December was up 5.9%, EBITDA was down 2.5%, and NPAT was down 5.8%.
The telco reported the interim ordinary dividend represents a 71% payout ratio on underlying earnings excluding impairment, and the interim special dividend a 58% payout ratio on the net one-off NBN receipts in the half.
And, it says the interim dividend, to be paid on 29 March 2018 will distribute $1.3 billion to shareholders.