Telstra share price: where next following ‘Covid-19’ update?

'It is at times like these that big business can show leadership and make a contribution to the national response and that is what we at Telstra are doing.'

The Covid-19 update

Telstra (ASX: TLS) today issued a market update which outlined not only the impact the coronavirus has had on its business; but a number of measures that the telco is taking to assists its customers, employees and the Australian economy more broadly.

Even so, investors responded in an undeniably bearish manner, bidding the telco’s stock down more than 6% during today’s session. The ASX 200, by comparison, rallied during the day, finishing out the session up 0.70% or 33 points.

Mind you, the overall message of Telstra’s market release was a positive one. Specifically, the telco noted that it was freezing job reductions, recruiting 1,000 temporary staff to deal with elevated call centre volumes, and even providing help to struggling small businesses and consumer customers.

'We are looking at every aspect of our business to see what we can do for our employees, customers, suppliers and the economy more broadly, while we maintain a focus on long term value creation.’

Better still, it was even noted that Telstra employees (including casual workers) would receive ‘extra’ paid leave during these difficult times.

'While it is critical we maintain a strong position we also believe there are a range of additional initiatives we can undertake now to help support the broader economy.’

Indeed, speaking to the broader impact of the coronavirus crisis, Telstra’s visionary Chief Executive Officer Andrew Penn said:

'COVID-19 is having a profound impact on business across the country. At Telstra we already have more than 25,000 people successfully working from home, and we are supporting many of our customers as they grapple with shifting to working and studying from home.'

Telstra share price: where next?

Ultimately, though Telstra noted that its FY20 cash flow and earnings (underlying EBITDA) are now expected to come in at the bottom of the previous guidance range, the blue-chip telco nonetheless reassured investors that the ‘current outlook remains within the range of [our] FY20 guidance.'

In saying that and by comparison, FY20 capital expenditure (CapEx) is now expected to come in at the top of the previous guidance range, as Telstra brings forward a CapEx spend previously earmarked for FY21 into CY20 – as the company rushes to build-out the capacity of the its network.

The Telstra share price finished out the week at $3.07 per share (-6.12%).

Practise trading Australian stocks with an IG demo account now.

IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.

The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.

Please see important Research Disclaimer.

React to global volatility

Market volatility continues as coronavirus concerns amplify. Trade with IG and take advantage of:

  • Tight spreads – from just 1 point on major indices, and 2.8 on US crude
  • Guaranteed stops – they’re free to use, and only incur a fee when triggered
  • Round-the-clock assistance – our highly skilled team are available when you need support

Live prices on most popular markets

  • Forex
  • Shares
  • Indices

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.


Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.

The Momentum Report

Get the week’s momentum report sent directly to your inbox every Monday for FREE. The Week Ahead gives you a full calendar of upcoming key events to monitor in the coming week, as well as commentary and insight from our expert analysts on the major indices to watch.

For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.