Telstra shares lose early gains to give up 1.8%

The news: Telstra has reaffirmed its FY24 earnings guidance and outlined new routes under its Intercity Fibre project, as well as an expansion of fibre connections across WA’s Pilbara region.

The numbers: Australia’s top telecoms operator still expects underlying earnings to be between $8.2 billion and $8.4 billion while total income will be in the $22.8 billion-$24.8 billion range. It is also expanding digital infrastructure with five new routes as part of its intercity fibre project. Funding for the updates and the Viasat project is expected to come at the top of the previously announced $1.4 billion to $1.6 billion guidance.

The context: Telstra outlined the Intercity Fibre project last year, and in August 2022, announced the first five priority routes, where construction is well under way with more than 400 kilometres of cable already laid. CEO Vicki Brady said on Tuesday the investments would deliver next generation digital infrastructure for the country as demand for connectivity continued to soar.

“As the largest investor in digital infrastructure in Australia we are uniquely positioned to design and deliver this critical infrastructure, which will enable ultrafast connectivity between capital cities,” she said.