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Australian telecommunications giant Telstra Corp. posted its best annual profit ever Thursday of 4.45 billion Australian dollars ($3.4 billion) as the government finalized plans to sell off its majority stake.
Australia's largest telco reported an eight percent rise in net profit for the year ending June 30, better than analysts' expectations of a A$4.3 billion ($3.3 billion) outcome.
Underlying sales revenue rose 3.7 per cent to A$21.50 billion ($16.4 billion) in the year.
Prime Minister John Howard will meet with the new head of Telstra, Sol Trujillo, late Thursday in the national capital Canberra where the privatization plans were expected to be discussed in detail.
Trujillo, who became Telstra's chief executive on July 1, has complained that the government regulates the former telecom monopoly too tightly, saying it stifles competition and innovation.
The Cabinet will next week consider the government's proposal to sell its 51.8 percent Telstra stake, worth more than 30 billion Australian dollars ($23 billion), in what would be the most expensive privatization in Australia's history.
Telstra also warned earnings are likely to decline this fiscal year as it faces stiff competition from local rivals of global telecoms companies like Vodafone PLC.
The company's chief financial officer John Stanhope said the latest result was driven mainly by growth in its broadband, cell phone, advertising and directories business, which helped offset a decline in fixed-line earnings.
"Underlying sales revenue for the year grew broadly in line with industry growth, which was a key goal for the company and we delivered on our commitment to reward shareholders by maximizing cash returns," Stanhope said in a statement.
Trujillo said new sources of revenue and further cost cuts would be needed to drive earnings growth in the future.
Federal Communications Minister Helen Coonan said Telstra's profit outlook for the current fiscal year wasn't exactly rosy.
"It's clear that ... the fixed-line is under some sort of pressure but then there are other profit centers and most modern telecommunications companies have to look at new markets," she told reporters. "I think that's what Telstra will do."
She said it is possible the government will introduce legislation to sell its stake in Telstra into parliament this month.
Trujillo would not comment on a newspaper report Thursday that he is taking to Howard a A$5 billion plan ($3.8 billion), including government funding, to upgrade to improve the nation's telecommunications infrastructure.
Trujillo said he would not comment on what he plans to say in Canberra as a matter of "respect and protocol."
"I just want to see us have a very constructive conversation about where we can meet the needs of our customers," he told reporters.
"We are looking for ways to service our customers, wherever they may be, consistent with the desires of the public policy makers," he added.
Australian telecommunications giant Telstra Corp. posted its best annual profit ever Thursday of 4.45 billion Australian dollars ($3.4 billion) as the government finalized plans to sell off its majority stake.
Australia's largest telco reported an eight percent rise in net profit for the year ending June 30, better than analysts' expectations of a A$4.3 billion ($3.3 billion) outcome.
Underlying sales revenue rose 3.7 per cent to A$21.50 billion ($16.4 billion) in the year.
Prime Minister John Howard will meet with the new head of Telstra, Sol Trujillo, late Thursday in the national capital Canberra where the privatization plans were expected to be discussed in detail.
Trujillo, who became Telstra's chief executive on July 1, has complained that the government regulates the former telecom monopoly too tightly, saying it stifles competition and innovation.
The Cabinet will next week consider the government's proposal to sell its 51.8 percent Telstra stake, worth more than 30 billion Australian dollars ($23 billion), in what would be the most expensive privatization in Australia's history.
Telstra also warned earnings are likely to decline this fiscal year as it faces stiff competition from local rivals of global telecoms companies like Vodafone PLC.
The company's chief financial officer John Stanhope said the latest result was driven mainly by growth in its broadband, cell phone, advertising and directories business, which helped offset a decline in fixed-line earnings.
"Underlying sales revenue for the year grew broadly in line with industry growth, which was a key goal for the company and we delivered on our commitment to reward shareholders by maximizing cash returns," Stanhope said in a statement.
Trujillo said new sources of revenue and further cost cuts would be needed to drive earnings growth in the future.
Federal Communications Minister Helen Coonan said Telstra's profit outlook for the current fiscal year wasn't exactly rosy.
"It's clear that ... the fixed-line is under some sort of pressure but then there are other profit centers and most modern telecommunications companies have to look at new markets," she told reporters. "I think that's what Telstra will do."
She said it is possible the government will introduce legislation to sell its stake in Telstra into parliament this month.
Trujillo would not comment on a newspaper report Thursday that he is taking to Howard a A$5 billion plan ($3.8 billion), including government funding, to upgrade to improve the nation's telecommunications infrastructure.
Trujillo said he would not comment on what he plans to say in Canberra as a matter of "respect and protocol."
"I just want to see us have a very constructive conversation about where we can meet the needs of our customers," he told reporters.
"We are looking for ways to service our customers, wherever they may be, consistent with the desires of the public policy makers," he added.