Australian telecommunications company Telstra has reported record year-end profits of A$4.04 billion (US$2.3 billion), despite increased competition in its home market as deregulation makes its presence felt.
Telstra reported revenue of A$18.6 billion for the year ended June 30, 2000, 5.9 percent higher than for the previous year.
The rise in revenue was due to strong growth in newer businesses such as mobile, data and Internet services, intercarrier/wholesale services and managed services, which now contribute 53 percent of sales revenue, former monopoly carrier Telstra said in a statement issued Wednesday.
The figures show Telstra is operating successfully in an intensely competitive market, while accelerating its transformation into a modern, customer service-focused communications company, according to Chief Executive Officer Ziggy Switkowski.
In its domestic market, Telstra now faces competition from neighboring Telecom New Zealand Ltd., which acquired Australia's third-largest telecommunications company, AAPT Ltd., during the year.
In response, Telstra has set up a joint venture called Telstra Saturn Ltd. in New Zealand and won a license to operate basic telecommunications services in Singapore's newly deregulated market through a joint venture with local company DataOne Asia Pte. Ltd.
Most notably, Telstra and Hong Kong Internet company Pacific Century CyberWorks Ltd. (PCCW) recently formed a partnership to create joint ventures in Internet backbone capacity, data center services and wireless communications and content. Telstra, one of the few cash-rich telecommunications vendors in the region, will invest approximately $3 billion in the PCCW venture.