TLS

[Snoopy]

I need to make a formal apology. That post I made yesterday above on this Telstra thread? I think it was one of the worst posts I have ever read on Sharetrader. It was long rambling, boring and repetitive. I couldn't even read it through straight myself without taking a break in the middle. And I am the author! My only excuse is that it was basically a text dump from analyst question time. So I do put a little blame on the analysts for being so repetitive and unimaginative with their questions. Here is my summary for those that didn't read the referred to post (which I guess is almost all of you).

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Network, Application & Services Business Unit

A sub section of the 'Fixed -Enterprise' i.e. government and business, market 'NAS' has suffered a notable fall in profitability. But we have to remember that total Telstra revenue for FY2023 was $23.245 billion while total NAS revenue at $2.834billion represented only just over 12% of that total. Part of the problem is that 'legacy voice revenue' has been thrown into the NAS total. As legacy voice revenue is in perpetual decline, it kind of tarnishes the NAS 'bucket' with a negative vibe as each year starts.

But smart software applications supplied my Telstra do have a future, in particular around the core functions of 'security' and functionality and integration 'with the cloud', and even help integrating AI where Telstra has some internal experience. Big projects have really stalled. But this is a response to macroeconomic headwinds and is not a signal that Telstra should leave that business space, or that competitors are taking market share. Not all growth will be organic. Some will be by acquisition e.g Versent, a Melbourne based company that provides expertise across cloud, security, data, digital, and identity and access management. The acquisition also includes Versent subsidiary Stax, which provides an AWS cloud self-management platform.

Telstra is committed to NAS cost cutting but it would be bad faith with the workforce right now to spell that out in job cuts. Yet if there are not enough sackings, and there will be an adjustment on the work capability side, there will certainly be slashings in other budget areas to meet those cost cutting targets.

Don't fret about NAS. We are coming back!

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SNOOPY