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Question 1: Analysis of financial performanceThe 2017 and 2018 Annual reports for Telstra are provided on Moodle Shell. Use these Annual reports to compare and contrast the financial results of the Telstra Group over the last two years (2017 to 2018). You should use financial information provided in the annual reports (including ratios, and narratives) to determine whether there has been an improvement or not in the financial position profitability and investments of the company. You should complete the following tasks:a) Prepare a brief description of Telstra Group Corporation, outlining the core activities and the market it operates within. Emphasise any factor in the companies’ history which you consider may help present a “picture” of Telstra.(2.5 marks)b) Examine the

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Question 1

a.

Telstra Corporation Limited, popularly referred as Telstra, is the largest telecommunication company in Australia and is engaged in the business of telecommunication networks, internet access, mobile, pay television, and a wide array of other products (Telstra.com.au, 2019).
The company started as a telegram company in 1854 and soon entered into the long-distance telephone or trunk call business in 1876. The business adopted innovations within the telegraph and telephone technologies over time and is credited to have pioneered the first telephone exchange in Australia (Telstra.com.au, 2019).
b.

i.
? The company has witnessed a decline in its revenue in 2018 by 0.95% as compared the previous financial year.
? The company has witnessed a decline of gross margins from 57.7% in 2017 to 52.0% in 2018.
? The company has witnessed a decline in its operating margin from 8% in 2017 to an operating loss of 2.7% in 2018.

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