Westpac reports pleasing profit results, Sydney Attractions playing hard to get for Village Roadshow. But first to Telstra.
This morning Telstra lifted its 2008 profit forecast and its long-term growth estimates. Telstra is two years into a five-year overhaul to cut costs, boost margins and reduce dependence on shrinking revenue from fixed-line phones. The company increased its full-year earnings before interest and tax forecast to a rise of 5-7 percent in fiscal 2008, from 3-5 percent forecast back in August. It said then it was being conservative because of regulatory uncertainty. Telstra posted its strongest profit result in 2005.
The full report is available at the following video and audio links.
Westpac this morning beat forecasts with a 9 percent rise in second half cash profit helped by strong business lending, and said momentum was strong this year. Australia's fourth biggest lender did not give a specific earnings outlook for the current year but outgoing Chief Executive David Morgan said he was confident the bank can continue to deliver strong results for shareholders. Westpac said it was confident of delivering solid growth in a robust domestic economy, while demand for credit was expected to remain high. Westpac, Australia's oldest bank, reported cash profit of $1.829 billion for April-September, up from $1.678 billion from a year ago. Westpac has managed increasing net profit results for the last 3 years.
Sydney Attractions Group, which yesterday received an increased take over offer from Village Roadshow, has told its shareholders to say no to the revised offer. Sydney Attractions says Village Roadshow's new offer, which comprises a cash component of $6.50 per share and a 5 cents dividend, is too low and says that by accepting the offer they risk only receiving $5.96 per share. But Village's chief executive officer Graham Burke said that Sydney Attractions was misleading shareholders. He says that if achieve 35 per cent shareholder acceptance, shareholders will get their $6.50. Sydney Attractions Group posted a significantly lower profit result in 2007 compared to the previous years.
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