Telstra annual Report Review Essay Example

City and State Where Institution is Located

This report is disseminated to the company’s shareholders. However, other stakeholders such as the management, potential investors, debtors and creditors as well as regulatory authorities may also find it useful. The report is disseminated through the various shareholders official addresses and is also found in the company’s website where it can be downloaded.

The above people find the financial information since they need to gauge whether the company is operating at a profit or at losses since their returns from the company depend on the company’s ability to make profits. The shareholders are interested in knowing whether the company will be able to pay them dividends from their investments, the government and regulatory authorities are interested in compliance and taxes, potential investors are interested in knowing whether the company is profitable so that they can guarantee themselves of returns on their investments while lenders and creditors on the other hand are interested in knowing whether the company will be able to meet its financial obligations from the results of its operations. On the other hand, customers may be interested in knowing whether the company will continue operating in the long run so that it can continue offering them its services.

Information offered in the report

The report offers information regarding the business that the company is involved in, the company’s purpose, values, vision, strategy and the overall view of the company’s operations in its introduction. The report then gives the Chairman and CEO’s message to the shareholders in which they give the overview of the company’s operations as well as the achievements of the company during the year or the financial period. The report also outlines changes in the executive in which the former CEO David Thodey leaves the company and Andrew Penn becomes the new CEO for the company. The third section reviews the company’s strategy and performance with the fourth section outlining Telstra’s material business risks. The outlook section gives the results and operations overview in which the performance of 2015 is compared to the previous performance with the company’s differing segments performance being analyzed. The report also contains a sustainability section in which the company outlays its social and environmental strategy and initiatives during the reporting period. The report then gives its corporate governance practices through the board of director’s report. The remuneration report outlines how the company’s directors and senior management teams are remunerated. The financial report outlines the company’s financial statements and hence its financial performance during 2015 with comparative figures for the year 2015. The notes to the financial statements outlines the policies used by the company in arriving at the financial statements while explaining the figures contained in the financial statements. The last major section is the shareholder section in which the company’s major shareholders as well as their shareholding are outlines.

Company’s successes or failures

In 2015, Telstra recorded a number of successes. This included paying $4.7 billion in dividends and share buy backs to shareholders which was a 3.4 percent increase from the previous year figures. The company recorded a 1.2 percent growth in total income which resulted from growth in all of the company’s major segments. The company also increased customer advocacy with the company’s criteria (Net Promoter system-NPS) improving by five points over the previous year. The company also recorded a 664,000 retail mobile customers increase and a 189,000 retail fixed broadband customers increase during the year and also invested half a billion dollars for its mobile network aimed at expanding mobile coverage of its 4G network which covers 94 percent of the Australian population with a target of 99 percent coverage. The company also launched a number of products including its new 4GX™ network. The company also switched on Australia’s largest Wi-Fi network. The company also made a number of acquisitions during the year including Pacnet limited in a bid to expand the business while establishing a joint venture with Telkom Indonesia and improved on its CSR strategy by decreasing carbon emission by 1.3 percent while data loads on its network increased by 36 percent. However, the company’s EBIT declined by 3.5 percent.

Recommendations and suggestions regarding business activities

The recommendations and suggestions made regarding business activities for the upcoming year include improvement of customer advocacy, driving value from the core where recommendations were made regarding investing in improvement of the service quality offered to customers and building new growth businesses. The projections from last year were largely achieved. Telstra achieved continued low single digit income growth although the projected growth in EBITDA was not achieved as a negative growth was achieved. The projections on free cash flow were also achieved. In addition, the above recommendations were also achieved. The company thus reported slightly improved profitability and hence increased dividends to shareholders.

Emphasis on Waste reduction

The report indirectly mentions waste reduction through its environmental leadership strategy in which the company seeks to be more proactive and strategic in its approach to the environment by identifying and minimizing material environmental impacts of its operations, working with suppliers to reduce the impacts of the products and services the suppliers provide and considering the environment whenever the company develops its own products and services. In 2015, the company does report a significant drop in carbon emissions from its activities as mentioned above.

References:

Telstra.com.au, 2017, Annual reports, Retrieved on 25^th May 2017, from;

https://www.telstra.com.au/aboutus/investors/financial-information/reports