Telstra Clear earnings more than double

TelstraClear says consumers do not like to give up their broadband access even in a recession and that has helped it more than double annual earnings before interest and tax.

The subsidiary of Australia's Telstra reported ebit of $18 million in the year to June 30, up from $7.5m in the same period last year. Revenue increased 2.8 per cent to $703m.

Earnings before interest, tax, depreciation and amortisation (ebitda) rose 6.7 per cent to $159m. The Ebitda margin was 23 per cent.

The company did not release a net profit figure but said it would be up on last year. It also did not make any profit forecasts.

The strong result in the depths of a recession was put down to near 20 per cent growth in the consumer segment revenue and control of costs.

The company had got "a lot smarter about connection costs," Dr Freeth said. It had also cut travel costs and had been "tight on staff numbers".

Capital expenditure fell to $96m from $113m last year.

"The earnings result were a little bit stronger than we expected for the year," said chief executive Allan Freeth.

"When we entered the start of the financial year we had greater aspirations for the revenue line. It became clear that was going to become very difficult," he said.

The consumer business has settled into a "rhythm of growth", he said.

"We have been pleasantly surprised at the robustness of this (broadband) segment in the residential market.

"People aren't prepared to give up their broadband. It seems to be a very important part of their lifestyle," he said.

Freeth said Telstra was happy with the trend in the New Zealand business.

"They would clearly like to see a higher return," he said.

Telstra posted a 10.3 per cent rise in annual net profit and refined its guidance for 2009/10 earnings, as it prepared for an extended period of slow economic growth, AAP reported.

Telstra, now headed by David Thodey, who grew up in New Zealand, reported net profit for the year ended June 30 of A$4.073 billion ($5.11b), up from A$3.692b in the previous year.

"Telstra faces significant challenges in the coming year, but we are well positioned to face those challenges," said Thodey.

- NZPA