Revenue for Telstra’s IT business up by a third

Telstra has reported revenue of $1.3 billion for its Network Applications and Services business for the first half of FY16, representing growth of almost 33 per cent on the previous corresponding period.

Telstra’s NAS business includes managed network services, collaboration, cloud, unified communications, security services, and software-as-a-service solutions for enterprise and government customers.

Pacnet, the network-as-a-service provider acquired by Telstra last year contributed $35 million to NAS revenue for the six months ending 31 December 2015. It was the first full half in which Pacnet contributed to Telstra’s revenue.

The telco reported growth of 44.2 per cent in NAS industry solutions, led by NBN commercial works. Managed network services grew by 28.9 per cent, and Telstra reported that unified comms revenue was up 15.5 per cent.

Overall Telstra reported revenue of $14.2 billion for the half, up 9.1 per cent.

EBITDA was up 1.7 per cent to $5.4 billion and net profit after tax up was 0.8 per cent to $2.1 billion.

Telstra reported a net addition of 235,000 retail mobile services in the half, bringing its total to 16.9 million. Mobile revenue was up 3.7 per cent to $5.5 billion.

“Our results have been achieved against increased mobile competition and acceleration in the NBN multi-technology model roll out,” Telstra CEO Andrew Penn said in a statement.

“We have continued to innovate and develop products and services to meet changing customer preferences and expectations in our fixed and mobile businesses.”

Copyright © 2016 IDG Communications, Inc.

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