Telstra widening seek for growth opportunities

Australia's Telstra Corp. (TLSYY, TLS.AU) will seek growth opportunities separate from its recent A$11 billion ($11.4 billion) national broadband network deal with the government, Chief Executive David Thodey said Sunday.

"It is very important to continue to look at growth opportunities," he said in an interview with the Australian Broadcasting Corp. "Any growth, be it organic or inorganic, needs to be put against some financial parameters...about being EPS-accretive in two years, return investment better than a whack over the three-year period and also be better than any on-market share buyback."

He added the company is targeting opportunities in Asia, media, and network applications and services.

Telstra last week told investors it expected to generate up to A$3 billion in excess free cash over the next three years. It also confirmed guidance for fiscal 2012 of low single-digit growth in revenue and earnings before interest, tax, depreciation and amortization, and that it would pay a 28-cents-a-share dividend in 2012 and 2013.

Under a 10-year deal with government-owned NBN Co., Telstra will receive payments for customers disconnected from its own copper-based network and transferred to NBN's fiber-optic one, as well as for leasing Telstra infrastructure.

April 22, 2012

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