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Telstra Posts 31% Profit Surge, Boosts Dividend and Expands Buyback

Sustained mobile revenue growth lets the company accelerate shareholder returns following a 75% cloud stake sale to Infosys

A woman walks past a Telstra store in Sydney's CBD in Sydney, Australia, July 3, 2024. REUTERS/Jaimi Joy/File Photo
The nation’s largest telecommunications company has announced a $1 billion share buyback as a reward for investors, after reporting a big rise in profit.
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Overview

  • Telstra reported a 31% year-on-year rise in net profit to A$2.34 billion for the year to June 30, matching Visible Alpha consensus and driven by mobile revenue growth.
  • The company extended its on-market share buyback by A$1 billion after completing a A$750 million tranche in June.
  • Telstra raised its full-year dividend by 5.6% to 19 cents per share, reflecting confidence in its cash flow.
  • It sold a 75% stake in its Versent cloud unit to Infosys for A$233 million, transferring around 650 staff and retaining a minority interest.
  • Operating expenses fell 6% as Telstra cut over 500 jobs, and Chief Executive Vicki Brady signalled a focus on cost control and strategic shifts toward AI and data services.