Traders wanting on the Telstra Company Ltd (ASX: TLS) share value could also be questioning if it’s a chance and can wish to have an in depth have a look at the corporate’s upcoming FY22 end result.

Telstra is scheduled to launch its FY22 report on 11 August 2022.

It’s a major end result for the corporate. Not solely does it come at a time when the ASX share market is experiencing a lot volatility, but it surely’s additionally the final end result that outgoing CEO Andy Penn will ship. The incoming CEO is Telstra’s present chief monetary officer Vicki Brady.

Revenue expectations

One of many fundamental ways in which buyers like to guage a enterprise is how a lot web revenue after tax (NPAT) or money circulation it generates.

For Telstra, its revenue has been beneath stress for quite a lot of years due to the shift to the NBN.

However, the corporate is now anticipating to develop revenue within the subsequent few years.

The estimate on CMC Markets suggests Telstra may generate earnings per share (EPS) of 14.three cents in FY22. Brokers like Credit score Suisse, Morgan Stanley, and Ord Minnett all assume that Telstra will generate roughly 14 cents of EPS.

If Telstra had been to make 14 cents of EPS in FY22, that may put the present Telstra share value at 29 instances FY22’s estimated earnings. However keep in mind, revenue is anticipated to rise from there because of the corporate’s T25 technique.

Common income per person (ARPU)

One of many key statistics for Telstra is its ARPU, which is basically how a lot cash it brings in from every buyer.

Within the FY22 half-year end result, Telstra mentioned that it skilled robust cell development with earnings earlier than curiosity, tax, depreciation and amortisation (EBITDA) rising by 25% for that phase. Publish-paid ARPU went up by 5% and the variety of post-paid companies elevated by 84,000.

Telstra mentioned with its HY22 report that its continued deal with cell community management and constructing worth resulted in that ARPU development. The telco lately introduced it was rising its post-paid cell costs by the speed of CPI inflation. This might occur every year.

Wi-fi broadband

I’ll be conserving an in depth watch on what Telstra says about its wi-fi broadband service, powered by 5G.

A key motive for the revenue decline in the previous couple of years has been the lack of earnings because of the shift to the NBN. Now Telstra is handing a considerable amount of margin over to NBN Co.

However, if it might probably encourage households to modify to utilizing a wi-fi 5G connection for his or her house web, it may result in extra income and better revenue margins for the telco.

Telstra dividend

After all, many buyers will wish to know in regards to the Telstra dividend.

Telstra is aiming to maintain paying an annual dividend of 16 cents per share till it’s capable of develop the dividend and revenue over time.

Due to this fact, the expectation is that Telstra pays a FY22 ultimate dividend of eight cents per share, bringing the full-year dividend to 16 cents per share.

On the present Telstra share value, that interprets into an anticipated grossed-up dividend yield of 5.7%.