(New Zealand Herald via NewsEdge) Investors will be all ears for an update on the progress of Telstra's five-year overhaul when Australia's biggest telco unveils its first half earnings this week.
But some analysts say the market will be disappointed if a profit upgrade is not forthcoming from the telecoms giant.
Telstra is expected to report up to a 20% decline in earnings before interest and tax for the period, as signaled in November, when it fronts the market.
Company CEO Sol Trujillo told Telstra's annual general meeting last year, the company would take the biggest hit from its transformation program in fiscal 2007, in terms of operating and capital expenditure.
However, Trujillo tipped EBIT to pick up in the second half, in a range between 37% and 40%.
The forecasts of analysts surveyed by AAP range from A$1.46 billion ($1.67 billion) to A$1.76 billion ($1.36 billion), with a consensus estimate of about A$1.64 billion ($1.27 billion).
In the first half, Telstra's net profit fell 10.3% to A$2.14 billion ($1.86 billion), as customers drifted away from the telco's fixed line services in favor of Internet and mobile products.
Fat Prophets senior equities analyst Greg Canavan said the profit result was expected to come in 'pretty much' on target, and analysts would be seeking an indication of the strength of the growth drivers of the business.
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