Telstra has announced an increase to its share buyback program, raising it to $1.25 billion after reporting a 9.4 per cent rise in interim net profit, reaching $1.1 billion. This increase follows a previous $750 million buyback and a current $1 billion buyback initiative slated for 2025-26. Telstra, a telecommunications company, provides a full range of communication services and competes across voice, data, mobile, internet, and pay television markets. The company connects customers and communities through its advanced networks.
In addition to the buyback, Telstra has adjusted its full-year underlying earnings guidance to a range of $8.2 billion to $8.4 billion. The initial guidance had indicated expected earnings between $8.15 billion and $8.45 billion. Mobile services proved to be the strongest area, contributing the most to earnings during the six months ending December 31, with income climbing 3.6 per cent to $5.7 billion. However, the majority of other segments experienced a decline in income.
While average revenue per postpaid mobile user grew by 4.8 per cent to $56.22 due to price increases implemented by Telstra, the total number of services in operation saw a reduction of 88,000. Despite this decrease in service numbers, the company has decided to increase its interim dividend payout.
Telstra will distribute an interim dividend of 10.5 cents per share, which marks an increase from the 9.5 cents per share paid out in the previous year. The increase to shareholder returns accompanies a period of cost management and flat revenue for the telecommunications giant.