Thank goodness for all that frenzied nonsense over Telstra. At least it helped mute all that nonsensical frenzy over interest rates.
Let’s get some basic facts clear. One — Telstra remains hugely profitable. It did not — as I heard one hyperbolic radio shock jock assert — have a record loss. Its bottom line profit was over $3 billion.
Two — it is generating enough cash to fund its multi-billion dollar capex spending every year; and also pay a very good dividend.
Three — it is whipping its competitors butts. Its operating margin remained at an incredible 45c out of every revenue dollar. And that’s more than $23 billion of revenue. Indeed, it is growing revenue three times faster than Optus — and that's after including the dead weight of falling revenue on the old fixed line business.
So — bottom line, four — there is no reason in the world why T-3 can’t proceed. And indeed should proceed.
Well, actually, correction, there are two reasons. Thoroughly asinine and plain gutless politicians — otherwise known as cabinet ministers who don’t understand any
of this.
Secondly — that the best way to dispose of the government’s stake in Telstra is actually to give the shares to the real owners — you. That would avoid having to guess at a sale price and would also avoid handing half a billion dollars of your money to investment wankers, sorry bankers, accountants and lawyers.
