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Is it a time to buy Telstra?

Team Veye | 04 Jan 2018 ASX - TLS
Is it a time to buy Telstra?

Telstra Corporation Ltd

Telstra Corporation Ltd (ASX: TLS) has revised FY18 guidance due to the impact of nbn co’s announcement that it would cease sales on hybrid fibre co-axial (HFC) technology for six to nine months from 11 December 2017, as well as nbn co’s Corporate Plan 2018.

 

TLS stock lost over 28.1% in 2017 but recovered over 7.2% in the last four weeks.

The nbn rollout would reduce the number of brownfields Ready for Service (RFS) premises and included a reduction of 200,000 brownfield activations in FY18 relative to the previous Corporate Plan, which has a negative impact on TLS’s expected FY18 Per Subscriber Address Amount (PSAA) and one-off Infrastructure Services Agreement (ISA) ownership receipts.

However, TLS has reaffirmed that it expects FY18 total dividend to be 22 cents per share fully franked including ordinary and special, as per the dividend policy announced in August 2017. We Give a BUY at $ 3.68

 

Updated FY 18 Guidance (source: Company Reports)

 

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