Telstra’s cash cow runs dry

Telstra’s revenues from its traditional cash cow, the old style, fixed line phones is haemorrhaging even faster than many analysts forecast. Fixed line revenues fell by three per cent in the year to 2004, and as a result taking the gloss off the company’s eight per cent rise in net profit to $4.45 billion. Telstra said the revenue growth rate could fall below the current rate of 3.5 per cent a year and also said that the speed of Telstra's fixed line revenue decline would intensify. Telstra flagged that profit may fall next year, with some analysts expecting profits to fall for several years.