Summary: Telecommunications giant Telstra recently reported a decline in cash flow in the December half. But the company used cash reserves for shareholder dividends, to reduce debt and to fund operations, and has forecast a lift in the second half.
Key take-out: Telstra generated $4 billion of after-tax free cash flow over 2012, and its investments in working capital will generate double-digit returns in profitability and cash flow.
Key beneficiaries: General investors. Category: Income.