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Ally Selby (Livewire Markets): Last up, we have old faithful Telstra, which has a dividend yield of around 4 per cent. Neil, I will stay on you. Is it a buy, hold or sell?

 

Neil Margolis (Merlon Capital): Telstra is a sell for us. I mean, I think that they are paying 16 cents, and the sustainable dividend I think is only around eight cents. There is still lots of unsustainable elements to their earnings from obviously government payments, from copper ... there are still a few copper earnings. It is possible they could gauge more on the mobile side, and make more money there. That is one upside risk. But standing away from the detail, the company has almost $15 billion in debt. So it has got a market value of equity and debt of close to $60 billion. And that generates about $3 billion in pretax earnings, and it could generate less. So, it is a sell for us.

 

Ally Selby (Livewire Markets): Telstra has not been that kind to shareholders over the past few years ... its share price is down around 33 per cent over the past five. Don, over to you; is it a buy, hold or sell?

 

Don Hamson (Plato): It is a buy from us, at the moment. I understand what Neil says, but they are actually making some good pricing decisions in their mobile. Just actually got a great price for selling half of their towers. And they are going to return that capital to shareholders in one form or another. So for us, it is a buy, actually. But it is probably more a trading buy than necessarily a long term buy.

 

 

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Telstra is set to acquire Australian patient management software company MedicalDirector. Telstra and owner, private equity firm Affinity Equity Partners, signed a deal over the weekend after an auction run by investment bank Jefferies. MedicalDirector was formerly owned by ASX listed Healius (formerly Primary Health Care), before it was sold to Affinity for $155 million in 2016. The deal is expected to be worth more than $350 million.

 

The deal will see MedicalDirector join the Telstra Health unit, which provides IT and software services to health and aged care groups in Australia including government-run services and private providers.

MedicalDirector is the second biggest provider of in practice software to GPs in Australia. The company says about 23,000 clinicians use MedicalDirector to deliver more than 80 million consults a year. The software includes practice management, clinical health records, billing, reporting and referral management functions.

............

 

The deal confirms a significant change in Telstra thinking about the role it can play in the health and health services market in Australia. Only a few years ago, shareholders expected the unit would be tossed out as part of CEO Andy Penns T22 strategy, as he searched for ways to simplify the group and realise value for shareholders.

 

However, Telstra has since changed its tune. It told shareholders at its annual general meeting last October that Telstra Health could be a significant contributor to the size and success of Telstra as a whole, and more recently said digitisation in healthcare technologies would be a strong tailwind for Telstra Health.

 

Telstra Health reported 17 per cent revenue growth in the six months to December 31 and was forecast to be EBITDA positive in the 2021 financial year, which would be a first for the unit.

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Telstra Health to acquire MedicalDirector

09 August 2021: Telstra today announced that Telstra Health has entered into a binding agreement to

acquire leading GP clinical and practice management software company MedicalDirector for an enterprise

value of A$350 million.

1

Telstra Health Board Chair Brendon Riley said the acquisition of MedicalDirector was a key step in Telstra

Health’s vision to create a connected and improved digital health experience for all.

“MedicalDirector is a modern clinical and practice management solution that supports GPs and other

medical specialists to focus on providing high quality care and reducing time on paperwork and

administration. It supports consultations by medical practitioners through a comprehensive patient medical

record, including electronic prescriptions, options for virtual consultations, patient care plans, real time

alerts about drug safety and drug interaction, and a range of other functionalities,” Mr Riley said.

“GPs play a central role in connecting to every part of the health and aged care systems, and practice

management is an incredibly important addition for Telstra Health in providing quality solutions and

supporting them to deliver care. Telstra Health has transformed substantially over the past five years and

this announcement reflects its continuing maturity as a business and its importance as part of Telstra’s

long-term growth strategy. It also reflects its continued growth into a global business, including

strengthening our existing presence in the UK where MedicalDirector has been establishing itself in recent

years.”

MedicalDirector has been trusted by healthcare practitioners for over 25 years, providing software as a

service and innovation to the healthcare industry, including across electronic health records, patient and

practice management, billing, scheduling, care coordination, medicines information and clinical content. Its

SaaS solutions support general practitioners and other specialists and pharmacies in the Australian

healthcare industry. It currently supports approximately 23,000 medical practitioners and is used to deliver

more than 80 million consultations a year.

Telstra Health’s Managing Director, Professor Mary Foley AM, said the acquisition supported Telstra

Health’s vision to be a leading partner to the health and aged care sectors.

“Patient care journeys move back and forth across home, clinics, hospitals, aged-care and pharmacies.

This acquisition helps realise our vision to connect and co-ordinate across the continuum of care, enabling

smoother experiences for those who need it and provide it.”

“Digital solutions support operational efficiency and effectiveness and help clinicians and other care

providers solve some of the complex problems they face in the delivery of care.”

“We will significantly increase investment in MedicalDirector to provide medical practitioners with the best

digital solutions, across desktop and cloud, to support the future delivery of primary health care.

“I am excited about the opportunity to continue to grow MedicalDirector, combining its sophisticated

solutions with Telstra Health’s clinical and health system capabilities, including our expert team of medical

practitioners (including GPs), health information managers and other health experts.”

MedicalDirector’s CEO, Matthew Bardsley, said “The team here at MedicalDirector are very excited about

this announcement today. The ability to bring our knowledge, trusted industry leading products and our

team to support the vision of Telstra Health is recognition of the great business we have built.

We look forward to working with Telstra Health to help support the critical work of the healthcare industry

through innovation and technology, never more so important than right now. Thank you to all of our

customers who are on the front line providing critical services during this pandemic. Together with Telstra

 

Health, we will continue to provide you with all the support we can to help keep all Australians safe at this

time.”

MedicalDirector is being acquired from funds advised by Affinity Equity Partners, with the transaction

expected to complete in Q1 FY22.

The acquisition of MedicalDirector follows Telstra Health’s recent announcement that it will acquire a

majority stake in global healthcare organisation PowerHealth as part of its global growth strategy.

 

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can see TLS go over 4 bucks in near term , frrom TA point of view ----kepp eye on 3.84, hope it can hit through it!!

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Telstra announces $1.35b on-market share buy-back

William McInnes

 

Telstra has announced it will return up to $1.35 billion to shareholder as part of an on-market share buy-back, distributing up to 50 per cent of the net proceeds from its InfraCo Towers transaction.

 

“When we launched T22, we committed to establishing a standalone infrastructure business unit for three reasons: to give transparency of those assets, to bring a harder commercial edge to how we operationalise them, and to create optionality with a view to maximising shareholder value,” said Telstra chief executive Andy Penn.

 

“This share buy-back is a clear demonstration of how we are creating additional long-term value for our shareholders.”

 

The purchase of shares is likely to commence after September 16.

 

The on-market share buy-back will be conducted in the ordinary course of trading over 12 months.

 

The exact amount and timing of the on-market buy-back will be dependent on market conditions, and Telstra may investigate other forms of return if required.

 

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Telstra total income falls 11.6pc to $23.1b, maintains dividend

William McInnes

 

Telstra has maintained its dividend despite a fall in total income, saying the 2021 financial year was a “turning point” in its financial trajectory.

 

The company reported an 11.6 per cent fall in total income to $23.1 billion for the 2021 financial year while profit rose 3.4 per cent to $1.9 billion.

 

The group’s net tangible assets per security rose to 62.7¢, up from 59.4¢ a year earlier.

 

“2021 was a really significant year for Telstra. We delivered results in line with guidance and we are seeing the focus and discipline on T22 pay off,” said Telstra chief executive Andy Penn.

 

“It represents a turning point in our financial trajectory. Our second half underlying EBITDA was up on the first half, and our guidance for FY22 underlying EBITDA is $7.0-7.3 billion, which represents mid to high single digit growth. FY21 NPAT and EPS were up 3.4 per cent and 2 per cent respectively.

 

“We are clearly building financial momentum and I am very pleased to be able to say that our underlying business will return to full-year growth in FY22.

 

“We have confidence because we see strong performance in our mobile business, continued discipline on our cost reduction target, green shoots in some of our growth businesses and a diminishing impact from the nbn.”

 

Telstra declared a final dividend of 5¢ a share and a special dividend of 3¢ a share, consistent with its distributions from the last few years.

 

The company said it was expecting total income for the 2022 financial year to be between $21.6 billion and $23.6 billion. It said it expected underlying EBITDA to be between $7 billion and $7.3 billion.

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https://www.sharecafe.com.au/2021/08/12/lea...ues-resurgence/

 

At the close the shares were up 3.6% at $3.97 after touching $4 in trading. The last time the shares were at that level was in July, 2017.

 

The shares hit their most recent low of $2.65 last October but have climbed steadily since then and are up around 50% in the past 10 months or so.

 

Helping the recovery yesterday was the confident assertion from CEO Andy Penn that the company would be back to peak performance in the current 2022 financial year.

 

That takes the total for the year to 16 cents a share, as well as the buyback of $1.4 billion.

 

 

This share buy-back is a clear demonstration of how we are creating additional long-term value for our shareholders,” Mr Penn said.

 

“We have transformed Telstra to become a simpler, more digitally enabled and leaner business,” Mr Penn said.

 

=========================

 

good ramping!! :lol:

i will trial up my stops to 3.81. to see how high it can go. TLS is out of long term down trend. as they said " every dog have it's day" :lol:

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  • 2 weeks later...

3.84 .... support ? or target? TLS pushed below that level at open and now it appears to be a ceiling... But this is only the first few hours.

 

 

I was pleased to see $4.00 hold up, for at least 24 hours, last week. One calculation I think needs to be included is the franking; there are so many yield harvesters playing the game now; when an 8c divi is stripped on the ex day, then there is generally another 3/7 of that amount in the drop.... rebound back to normal seems to occur in a few days, when things settle.

 

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you are right about franking credit nipper :P

 

8 cps ff means 8 cps plus 30% of 8cps franking credit = 11 cps, when it go x--divy that is how much it likely to drop

as TLS have habit to drop a lot more after x-divy , that is wny i think the last support level is 3.71ish for the near term. just rough study from the chart.

 

see how it goes today!!

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.... some more divided opinion on Telstra.. Which is why it continues to bounce around under $4.. In fact almost all the telecoms sector is unrewarding, in that there is constant regulatory change, tech upgrades an competition. And the tilt towards data, being ICT. I expect to see much more corporate activity in the second tier telcos (and there are a lot of them)

Ally Selby: Hello, and welcome to Livewire Markets and Buy Hold Sell. I am Ally Selby, and today we are discussing [] quality companies with resilient cash flows and further earnings upside on the horizon, and to do that, we are joined by, Rhett Kessler from Pengana and Stuart Welch from Alphinity.

Ally Selby: First up, we have national treasure Telstra, which has seen its share price rise around 27 per cent over the past 12 months. Rhett, I might start on you. Is it a buy, hold or sell?

Rhett Kessler (BUY): It is a buy for us. It is one of our largest holdings in the portfolio. We like the fact that the two main assets are the mobile phone network, and lets face it, mobile data is the new oxygen. I have four kids. Try and take it away from them.

So, that is a very good business, and they are obviously good engineers because they have got the best network, and they are very good marketers because they managed to get a 15 to 20 per cent premium for the same data that their competitors sell.

The other bit we really like is the fact that it has got an inflation protected arrangement with the NBN, where it rents the infrastructure on a CPI contract. So my view is inflation is coming and that gives a really nice kicker to earnings if it does turn up.

Ally Selby: Also, a kicker for earnings is Telstra has just announced two new partnerships with the Aussie government. Stuart, over to you. Is Telstra a buy, hold or sell?

Stuart Welch (SELL): It is a sell for us. So I think the share prices got quite excited and trended up after they did a deal to sell some of their mobile phone towers.

They are pretty lofty prices, and we may hear more about asset sales at their investor day. That is not too far away, but for us, now that the NBN existential threat is behind it, it is back to being predominantly a mobile phone operator.

And although they are the best network in the country with the widest reach and the most spectrum, it is a pretty mature space. And so from our perspective, we see better opportunities elsewhere.

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