Telstra Corp., Australia’s biggest phone company, cut its sales forecast for fiscal 2010, citing a strong currency, rivalry for mobile phone services and a greater take-up of wireless-only homes.
“Following the continuation of trends seen in the second half of fiscal 2009, Telstra now expects sales revenue to be flattish compared to fiscal year 2009,” the company said in a statement today.
Telstra reiterated its prediction for “low single-digit growth” in 2010 earnings before interest, tax, depreciation and amortisation and EBIT and maintained its forecast free cashflow target of A$6 billion.
Tough operating conditions in Hong Kong are also weighing on revenue, it said.
The shares were unchanged at $4.43 and have gained 10% in the past three months. The ASX-listed shares were at A$3.55 yesterday.