Telstra is set for a $3 billion spinoff of its digital marketing operations from its parent company, Telstra, as part of its planned sale to Telstra Communications Group, according to the company’s Chief Digital Officer, Mark Litt.
Litt told the Sydney Morning Herald that the deal is a “natural progression” of the two companies’ business.
“There’s a lot of excitement around this,” Litt said.
“It’s really exciting to see how quickly this business can evolve.”
Litt’s comments come after Telstra reported a fourth-quarter profit of $11.5 billion.
It had reported a loss of $12.6 billion in the same period a year earlier.
The company had posted revenue of $1.9 billion in 2016 and $2.9 million in 2017.
Telstra has also seen a number of key business decisions taken by its Chief Executive Officer, Tim Berners-Lee, including the launch of the telas online advertising service, which is being developed as a separate unit from the telcos’ advertising business.
The telas service allows consumers to browse and view content across more than 500 websites, and includes the ability to sell ad space and manage the content they buy through the telesales portal.
“We’re seeing great traction from consumers, we’re seeing fantastic uptake from advertisers, we’ve seen tremendous demand for the telaserail platform and the telastail platform, so I think that’s really driving the growth,” Lett said.
Lett says the tela-service platform will be an integral part of the business as it develops.
“I think that will be the core of the company,” he said.
Telas revenue in the first quarter of 2021 fell by almost $900 million to $1 billion, the company said.