Telstra posts 8.1% jump in 1H profit, hikes interim dividend
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The news: Telecoms giant Telstra has reported an 8.1% increase in first-half statutory profit to $1.21 billion, and lifted its interim dividend to 10.5 cents per share.
The numbers: The profit result was up from last year’s first-half total of $1.12 billion and above estimates of $1.19 billion, according to Visible Alpha data.
Total income came to $11.85 billion, up 0.2% year on year but behind average forecasts of $11.94 billion.
Telstra will pay an interim dividend of 10.5 cents per share, compared to 9.5 cents per share a year earlier and average estimates of 10 cents per share.
The company also announced an increase in its current on-market share buyback from ‘up to $1 billion’ to ‘up to $1.25 billion’ in FY26, following “strong progress” in completing $637 million of the buyback during the first-half period.
Underlying EBITDA guidance for the year was tightened from $8.15-8.45 billion to $8.2-8.4 billion, with no change to the midpoint.
The context: Telstra said it saw a “low level of income growth” during the period, but delivered positive operating leverage of 3.1 percentage points through cost discipline and efficiency gains
The group reduced underlying operating expenses by $179 million, or 2.4%, offsetting pressure from rising costs.
The source: ASX
