Australia’s Telstra profit slumps on competition

SYDNEY

Australia’s dominant telecommunications company Telstra Thursday reported a surprise slump in first-half profit with its fixed-line and mobile businesses taking a hit amid increased competition and a shift towards digital.

Net profit after tax for the six months to December 31 fell 14.4 per cent to Aus$1.79 billion (Dh5.07 billion; $1.38 billion) from the previous corresponding period. The figure sent Telstra’s share price tumbling 4.43 per cent to Aus$4.96 in midday trade in Sydney. “It’s a weak result ... you’ve got revenue and underlying profit all missing (market expectations) by a decent chunk,” IG Markets chief strategist Chris Weston said. (AFP)