Australia's Telstra annual profits down 17

Australia's dominant telecom company Telstra said its annual net profits dropped 17 percent percent to Aus$3.23 billion (US$3.27 billion), but flagged a better year ahead. The company's profit for the year to June 30 was down from Aus$3.88 billion in the previous corresponding period, but was better than analyst expectations. Revenue increased by 0.7 percent to Aus$25.09 billion, in line with previous guidance, while earnings were Aus$10.15 billion, down 6.4 percent from the previous year. "We have seen the company return to revenue growth and expect the momentum across the business to continue in 2012," chief executive David Thodey said on Thursday. Telstra forecast low single digit revenue and earnings growth in the 2011/12 financial year. "We have always acknowledged the need to translate our 2011 initiatives into tangible financial benefits, so we are pleased with the results in the second half of this year and expect that momentum to continue in 2012," Thodey added. The company said it had seen one of its best years ever for customer growth, with an extra two million mobile customers. Thodey added that Telstra had retained or grown market share in major products over the year, with the benefits evident in an improved financial performance in the second half. "We continue to invest in innovative products and services and this differentiation is increasingly being recognised by our customers," he said.