Telstra shares edge higher after meeting estimates
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More news: Telstra shares edged higher after posting full-year results in line with market forecasts and tightening its FY25 EBITDA guidance range.
Shares were up 1.7% to $3.94 by 11am AEST.
Jarden analysts expect consensus FY25 EBITDA estimates to "upgrade marginally" as a result of Telstra tightening its guidance range from between $8.4 billion and $8.7 billion, to $8.5 billion to $8.7 billion.
They noted the "key positive surprise" from Telstra's result was its international segment, with EBITDA gaining 9% year on year, 10.4% above Jarden's forecasts.
Telstra profit slides $12.8% to $1.8 billion
The news: Telstra's struggling fixed-line enterprise business strained its FY24 earnings, with net profit down 12.8% to $1.8 billion for the year.
The numbers: In May, Telstra said it would take action to boost its lagging fixed-line business performance, where revenue fell by 67% for the full year. The measures included cutting close to 10% of its 28,000-strong workforce.
Today, the company said those changes would result in $350 million cost reductions by the end of FY25.
The context: Stronger performance in its mobile division, with revenues up 5.6%, and a $150 million expansion in its InfraCo asset base, helped offset difficulties elsewhere in the business, with underlying profit up 7.5% to $2.3 billion.
Reported EBITDA grew 4.2% to $7.5 billion, and $122 million in cost reduction has been achieved to date.
The company noted it has reduced its Scope 1 and Scope 2 carbon emissions by 37% since 2019 and said it is on track to meet its stated 70% reduction target by 2030.
The sources: Telstra media release, Telstra FY2024 presentation
