To Telstra, it was cost cuts; for the press, it was job cuts; and for brokers, it was panic about guidance. The reaction to the telco’s news that it would cut 2800 jobs from its enterprise division was varied and swift. The share price fell almost 10% after the announcement before recovering slightly.
The herd may have missed the bigger picture.
Telstra’s mobile business grew operating profits by 13% to more than $2.5 billion for the half year. For a business that commands more than 40% of the national market, that is astonishing growth,
