10 Aug 2012

Campaign attracts 40,000 new users - TelstraClear

6:58 am on 10 August 2012

TelstraClear says a campaign that's attracted 40,000 new users has helped boost full year earnings before its planned $840 million sale to Vodafone later this year.

The Australian-owned corporate's operating earnings rose 18% to $A99 million in the year to the end of June.

Chief executive Allan Freeth says its $75 campaign aimed at households resulted in a fantastic year.

Sales fell 2% to 502 million, but Mr Freeth says winning the accounts of some large corporate clients, and its $75 dollar campaign aimed at households, plus cost savings, has helped earnings.

He says the sales drop was due to some accounting changes related to one its businesses which had some affects, in some parts of the business there was not the growth in revenue that was expected.

But Mr Freeth says given the economic conditions and some of the changes the company was undertaking he was very pleased to hold the revenue line.

Last month, Vodafone bought TelstraClear for $840 million and analysts say the combined company will provide stronger competition to Telecom.

The parent company, Telstra, will take a $A130 million impairment charge against goodwill for TelstraClear.

Meanwhile, Telstra's full year profit rose 5% to $A3.4 billion.