The Telstra Corporation Ltd (ASX: TLS) share price dropped to a 52-weeks low after the company announced an expected 30% dividend cut in financial year 2018. Telstra indicated in August 2017 that the full year 2018 dividend is expected to be 22 cents.
Telstra is a leading Australian telecommunication company that specialises in mobile network provision, internet services and entertainment products.
In financial year 2017 Telstra reported a net profit of $3.9 billion, a 33% decrease in comparison to 2016. Dividends for both the first and second half-year periods were at 15.5 cents, totalling to 31 cents for the full financial year.
According to the Financial Times analysts have an average share price target on Telstra of $4, with a high estimate of $5.30 and low estimate of $3.16.
In its shareholder presentation released in September this year Telstra stated expectations for 2018 revenue and EBIDTA to increase by up to 7% and 4.7 % respectively.
