Telstra Group Stock Earnings Reports

Telstra delivered a solid H1 FY25: underlying EBITDA rose ~6% to $4.2bn, NPAT was up 7.1% to $1.1bn, EPS grew 6% to $0.089 and ROIC improved to ~8%. The board increased the fully franked interim dividend 5.6% to $0.095 and approved an on‑market buyback of up to $750m. FY25 guidance was reaffirmed. Key operational points: mobile performed strongly (119k net new handhelds, service revenue +3.1%, ARPU benefits from price rises); InfraCo Fixed and Fixed Consumer & Small Business delivered EBITDA growth; Fixed Enterprise is being reset (product portfolio reduced ~two‑thirds, cost actions ongoing); International benefitted from wholesale/enterprise demand and a Digicel earn‑out release. Strategic investments: intercity fiber (7 routes, >3,000km, $1.6bn program, first routes RFS late‑2025, target mid‑teens IRR) and an Accenture joint venture to accelerate AI capabilities. Management reallocated ~A$800m of BAU CapEx over four years to extend 5G leadership (99.7% population coverage today; 5G at 91% and targeting 95% by end FY25). Costs/cash: core fixed costs down $161m in the half (cumulative $283m since FY22; on track to $350m), free cash flow after leases before strategic investment +7.6% to $1.1bn, net debt ~1.9x and A‑band credit maintained. Risks/notes for investors: higher depreciation and amortisation (spectrum and shorter asset lives) will persist, intercity fiber faces timing and cost pressures with some spend shifted toward FY26‑27, the franking account is tight, and enterprise/legacy product declines remain a turnaround risk. Overall the company is prioritising ROIC and cash EPS, balancing disciplined capital returns (dividend + buyback) with targeted strategic investment and productivity actions.