Predictions for the first year's profit since the government floated a third of Telstra range from A$2.83 billion to A$3.06 billion, or as much as 19.6 per cent more than a year ago, with a 14-cent dividend, according to Barra's The Estimates Directory.

Despite losing market share in the local and long distance call businesses, the company is expected to show at least a five-per cent rise in revenue, driven by growth in data and mobile services.

"They've probably done a bit better than people thought on the revenue line," said David Wilson with brokerage firm Ord Minnett, who predicted Telstra will report a profit of A$2.94 billion on revenue growth of seven per cent.Analysts said that the company is unlikely to be able to repeat that level of growth in the current year, but said job cuts will continue to fuel savings and push up earnings.Cost cuts, mostly from job reductions, are seen as the biggest source of the company's profit expansion, with analysts flagging a steady rise in earnings margins as promising."I think it is a fairly safe and reliable earnings stream from Telstra, because it's cost-related," said a Sydney-based analyst who forecast the company will show a net profit of A$2.9 billion for the year to end-June 1998."So any uncertainties about the economy or uncertainties about exposure to Asia -- Telstra simply doesn't have them. It's earnings are very safe from external shock," he said.

Telstra's partly-paid shares closed steady last Friday at A$4.53 and have soared since they were listed, reaping windfalls for private investors who paid A$1.95 and institutions which paid A$2.00 for their instalment receipts.The company's five-year programme to slash 27,500 jobs by2001 has enriched its earnings much to the dismay of the Communications, Electrical and Plumbing Union, one of three unions with members working for Telstra.

But analysts shrugged off the threat of a union strike starting next Tuesday over a year-long pay dispute which has pitted the union's demand for an eight-per cent wage hike against Telstra's offer of a four-per cent raise.