June 19, 2018 / 10:18 PM / 4 months ago

Australia's Telstra sees $1.8 bln cost cuts, to spin off infrastructure unit

June 20 (Reuters) - Australia’s biggest telecommunications company Telstra Corp Ltd on Wednesday said it aimed to reduce costs by A$2.5 billion ($1.84 billion) by fiscal 2022, and announced making its infrastructure assets a standalone unit.

Telstra said it expects fiscal 2019 core earnings between A$8.7 billion and A$9.4 billion, excluding restructuring costs of approximately A$600 million.

Telstra has seen rising competition squeeze its mobile margins and fixed-line revenue dwindle, leading to a narrowing of its earnings forecast for the current financial year as of May and a warning that challenging conditions were expected to extend into 2019. ($1 = 1.3559 Australian dollars) (Reporting by Susan Mathew and Aditya Soni in Bengaluru, editing by G Crosse)

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