THE NEWS WRAP: Telstra on track for $3.6 billion profit
Telstra has reported it is on track to reach a full-year profit of more than $3.6 billion, after adding 607,000 customers to its mobile networks in an otherwise weak mobile phone market.
The telecommunications giant also announced that it has lifted its first half-year profit by nearly 9% to $1.6 billion, with 1.5 million devices now using the company’s LTE/4G mobile network, representing 13% of its post-paid customers and 17% of its mobile broadband customers.
However, the news is not entirely rosy for the company, which reported a 10.8% revenue decline off its copper network and a massive 12.5% fall in its Yellow Pages/Sensis business.
NAB set for $6 billion profit
NAB is set to report a record $6 billion profit, breaking seven quarters of flat earnings to report a 4% increase in first-quarter cash profit to $1.45 billion.
The result was boosted by improved retail margins following mortgage repricing and the fall in wholesale funding costs.
During the announcement, no update was given on a potential exit from its struggling UK operations.
News Corp downgrades outlook
News Corporation’s chief financial officer David DeVoe has announced total operating income for the media conglomerate is now expected to grow in the "mid to high single digits", down from the low double-digit percentage growth the company had previously expected.
The media giant blames underperforming Australian assets, its Sky Italia pay television service and its Fox television network in the US for the downgrade.
Overall, News Corp reported that revenue grew by 5% to $US9.43 billion for the second quarter, while adjusted operating income rose 5% to $US1.66 billion, ahead of a proposed split that would see the media conglomerate’s broadcasting and publishing assets separated.
In New York, the S&P500 was 0.351% lower at 1506.81. The Aussie dollar was down to $US102.84 cents.