Analysis: Seven items of note in Telstra's annual report

 

IT administrative costs down, software development rises.

Telstra yesterday released its 2011 annual report [pdf], a 233-page tome of financial data and analysis sprinkled with interesting footnotes and casual project mentions.

The report included interesting detail on administrative IT costs, software development and IT staffing arrangements.

There were also details of National Broadband Network and carbon tax exposure assessments that found the light of day.

iTnews has summarised the best seven of these casual mentions below:

  1. Telstra reported a year-on-year 18.2 percent reduction in IT costs listed under general and administration expenses. It attributed the reduction “to renegotiated licence fees with IT vendor managers and PC lease agreements".
  2. Savings were also achieved by “the renegotiation of contracts with external suppliers and the conversion of expenses for IT professionals to labour costs as they moved to permanent staff".
  3. Telstra noted a rise in capital expenditure on software assets, which it put down to continued IT investment under the telco’s “business simplification strategy”. It is not until detailed intangible asset breakdowns that the investment becomes clear. The telco reports that as at June 2011, it “had software assets under development amounting to $593 million (2010: $392 million)".
  4. Software “additions” in the past financial year helped increase the telco’s amortisation expenses by 10.9 percent or $99 million.
  5. The telco’s board has set itself a series of diversity goals for fiscal year 2012. They include  bringing another woman onto the board for a total of three and having “50 percent female representation” in its 2013 graduate intake.
  6. Telstra said it would assess its exposure to the carbon tax once the system is ironed out by the Government. “Based on the information currently available, it appears unlikely that Telstra will be directly liable under the system to purchase emission permits,” the telco noted. “However, Telstra may experience an indirect cost impact from the system as a result of the impacts on electricity prices and other parts of Telstra's supply chain.”
  7. The annual report surfaces Telstra’s estimates for the service life of particular parts and equipment in its network. This year’s service life re-assessment saw depreciation expenses rise $79 million, after they went down $124 million the year prior. The report also reveals details of an assessment “on the impact on service lives that the NBN may have”, in reference to the potential future requirement by NBN Co or the Government to “accelerate... depreciation or... retirement” of Telstra’s assets. The outcome of the assessment was that “minimal” impact was expected.

Copyright © iTnews.com.au . All rights reserved.


Analysis: Seven items of note in Telstra's annual report
 
 
 
Top Stories
Frugality as a service: the Amazon story
Behind the scenes, Amazon Web Services is one lean machine.
 
Negotiating with the cloud email megavendors
[Blog post] Lessons from Woolworths’ mammoth migration.
 
Qld govt to move up to 149k staff onto Office 365
Australia's largest deployment, outside of the universities.
 
 
Sign up to receive iTnews email bulletins
   FOLLOW US...

Latest VideosSee all videos »

The great data centre opportunity on Australia's doorstep
The great data centre opportunity on Australia's doorstep
Scott Noteboom, CEO of LitBit speaking at The Australian Data Centre Strategy Summit 2014 in the Gold Coast, Queensland, Australia. http://bit.ly/1qpxVfV Scott Noteboom is a data centre engineer who led builds for Apple and Yahoo in the earliest days of the cloud, and who now eyes Asia as the next big opportunity. Read more: http://www.itnews.com.au/News/372482,how-do-we-serve-three-billion-new-internet-users.aspx#ixzz2yNLmMG5C
Interview: Karl Maftoum, CIO, ACMA
Interview: Karl Maftoum, CIO, ACMA
To COTS or not to COTS? iTnews asks Karl Maftoum, CIO of the ACMA, at the CIO Strategy Summit.
Susan Sly: What is the Role of the CIO?
Susan Sly: What is the Role of the CIO?
AEMO chief information officer Susan Sly calls for more collaboration among Australia's technology leaders at the CIO Strategy Summit.
Meet the 2014 Finance CIO of the Year
Meet the 2014 Finance CIO of the Year
Credit Union Australia's David Gee awarded Finance CIO of the Year at the iTnews Benchmark Awards.
Meet the 2014 Retail CIO of the Year
Meet the 2014 Retail CIO of the Year
Damon Rees named Retail CIO of the Year at the iTnews Benchmark Awards for his work at Woolworths.
Robyn Elliott named the 2014 Utilities CIO of the Year
Robyn Elliott named the 2014 Utilities CIO of the Year
Acting Foxtel CIO David Marks accepts an iTnews Benchmark Award on behalf of Robyn Elliott.
Meet the 2014 Industrial CIO of the Year
Meet the 2014 Industrial CIO of the Year
Sanjay Mehta named Industrial CIO of the Year at the iTnews Benchmark Awards for his work at ConocoPhillips.
Meet the 2014 Healthcare CIO of the Year
Meet the 2014 Healthcare CIO of the Year
Greg Wells named Healthcare CIO of the Year at the iTnews Benchmark Awards for his work at NSW Health.
Meet the 2014 Education CIO of the Year
Meet the 2014 Education CIO of the Year
William Confalonieri named Healthcare CIO of the Year at the iTnews Benchmark Awards for his work at Deakin University.
Meet the 2014 Government CIO of the Year
Meet the 2014 Government CIO of the Year
David Johnson named Government CIO of the Year at the iTnews Benchmark Awards for his work at the Queensland Police Service.
Q and A: Coalition Broadband Policy
Q and A: Coalition Broadband Policy
Malcolm Turnbull and Tony Abbott discuss the Coalition's broadband policy with the press.
AFP scalps hacker 'leader' inside Australia's IT ranks.
AFP scalps hacker 'leader' inside Australia's IT ranks.
The Australian Federal Police have arrested a Sydney-based IT security professional for hacking a government website.
NBN Petition Delivered To Turnbull's Office
NBN Petition Delivered To Turnbull's Office
UTS CIO: IT teams of the future
UTS CIO: IT teams of the future
UTS CIO Chrissy Burns talks data.
New UTS Building: the IT within
New UTS Building: the IT within
The IT behind tomorrow's universities.
iTnews' NBN Panel
iTnews' NBN Panel
Is your enterprise NBN-ready?
Introducing iTnews Labs
Introducing iTnews Labs
See a timelapse of the iTnews labs being unboxed, set up and switched on! iTnews will produce independent testing of the latest enterprise software to hit the market after installing a purpose-built test lab in Sydney. Watch the installation of two DL380p servers, two HP StoreVirtual 4330 storage arrays and two HP ProCurve 2920 switches.
The True Cost of BYOD
The True Cost of BYOD
iTnews' Brett Winterford gives attendees of the first 'Touch Tomorrow' event in Brisbane a brief look at his research into enterprise mobility. What are the use cases and how can they be quantified? What price should you expect to pay for securing mobile access to corporate applications? What's coming around the corner?
Ghost clouds
Ghost clouds
ACMA chair Chris Chapman says there is uncertainty over whether certain classes of cloud service providers are caught by regulations.
Was the Snowden leak inevitable?
Was the Snowden leak inevitable?
Privacy experts David Vaile (UNSW Cyberspace Law and Policy Centre) and Craig Scroggie (CEO, NextDC) claim they were not surprised by the Snowden leaks about the NSA's PRISM program.
Latest Comments
Polls
Which bank is most likely to suffer an RBS-style meltdown?





   |   View results
ANZ
  21%
 
Bankwest
  9%
 
CommBank
  11%
 
National Australia Bank
  17%
 
Suncorp
  24%
 
Westpac
  19%
TOTAL VOTES: 1428

Vote