The bottom line on Telstra’s cash flow

Suggestions that Telstra’s cash flow has been constrained are totally wide of the mark.

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.


{{ twilioFailed ? 'SMS Code Failed to Send…' : 'SMS Code Sent…' }}

Hi {{ user.FirstName }}

Looks like you've already taken a free trial

Please enter your payment details

We have sent you a code via SMS to {{user.DayPhone}}

please enter this code below to activate your membership

We cannot send you a code via SMS to {{user.DayPhone}}

If you didn't receive SMS code please

SMS code cannot be sent due to: {{ twilioStatus }}

Please select one of the options below:

Looks you are already a member. Please enter your password to proceed

Please untick this box when using a public or shared device

Verify your mobile number to unlock a FREE trial

Please sign up for full access

Updating information

Please wait ...

  • Mastercard
  • Visa

The email address you entered is registered with InvestSMART.

Please login or select "Don't know password"

Please untick this box when using a public or shared device

Register as a new member

(using a different email)

Related Articles