Australian telecoms Telstra Corp today said that it would eliminate around 800 jobs as it restructures its directories unit Sensis into a digital business
“We need to remain responsive to the changing media landscape,” Sensis managing director John Allan said in a statement.
Telestra is trying to grow its digital presence and Sensis is facing stiff competition from mobile and online search directories, Reuters reported.
In January, Telstra agreed to sell 70 percent of Sensis to U.S.-based private equity firm Platinum Equity for $410 million. It retains the remaining 30 percent of directories business. Sensis publishes print and online directories including the White Pages and the Yellow Pages.
Telstra, the #1 telecom service provider in Australia, has posted 9.7 percent rise in first-half net profit to $1.7 billion. Its revenue rose 3 percent to $13 billion.
Telstra’s chief executive David Thodey said last week: “We continued to invest in maintaining our network leadership, highlighted by our $650 million capital investment in mobiles infrastructure in the half.”
The company is remaining disciplined in its capital management, selling Hong Kong mobile business CSL New World Mobility and a 70 percent stake in Sensis, while investing in a new joint venture with Telkom Indonesia, buying DCA Health and a 50 percent stake in FRED IT, and also investing some of its existing businesses.
Telstra’s 4G expansion is key to the company’s revenue growth. Its 4G network reaches 85 percent coverage of the Australian population. It has 3,500 4G mobile base stations across the country, giving it four times the 4G coverage area of any other company.
