Telstra flexes ‘strong balance sheet’ to investors as spectrum fight nears climax
Telstra shares gained 3.6% to touch their highest levels in more than 5 years after a ‘solid’ half-year result allowed it to hike its dividend.
Telstra CEO Vicki Brady has assured investors that the telco giant is well placed to navigate the federal government’s multi-billion dollar spectrum licence renewals process, after a stronger than expected half-year result allowed it to hike its dividend.
As Capital Brief reported earlier this month, Telstra has been warning the federal government that ACMA’s preferred price point is $1.3 billion more than what the $55 billion company deems the “fair market price” for the spectrum licenses — radio frequencies mobile network operators use to deliver their services. 80% of existing licences are set to expire between 2028 and 2032.
Yet while Telstra previously said the high price could risk delays to investment, Brady told analysts on Thursday that “we sit with the capacity, I think, to be able to navigate that period”.
On Thursday, Telstra posted an 8.1% increase in first-half statutory profit to $1.21 billion and lifted its interim dividend to 10.5 cents per share. Jarden analyst Liam Robertson described it as a “solid headline print” in a flash note sent to clients. The stock closed 3.6% higher at $5.14.
