Telstra CEO Vicki Brady highlighted earnings growth in its fiscal 2025 (ending 30 June) and a strong balance sheet, forecasting continued gains in the current year and unveiling a second share buyback plan within six months.

Net profit grew 31 per cent year-on-year to AUD2.3 billion ($1.5 billion), with total revenue flat at AUD23.6 billion.

Its 2026 guidance targets underlying EBITDA adjusted for lease amortisation at between AUD8.15 billion and AUD8.45 billion, compared with AUD8 billion in 2025.

It earmarked AUD3.2 billion to AUD3.5 billion in capex for fiscal 2026 (the outlay in fiscal 2025 was AUD3.4 billion).

In its earnings call, Brady said the Australian operator registered a fourth consecutive year of underlying growth, “reflecting momentum across our business, strong cost control and disciplined capital management”.

She added it increased profit across mobile, fixed consumer and small business, fixed enterprise, fixed infrastructure and its tower unit.

Stake sale
The CEO also commented on its move to sell a 75 per cent stake in cloud company Versent Group, which it acquired in 2023, to Infosys for AUD233 million. She explained the sale is part of its long-term strategy to focus on core connectivity and means “sharpening our focus” for its enterprise business.

Mobile service revenue for the full-year grew 3.5 per cent to AUD8.5 billion, supported by a 2.1 per cent increase in ARPU to AUD43.71.

Post-paid subscribers were flat at 8.9 million, while prepaid users fell 2.5 per cent to 3.1 million.

IoT revenue increased 1.4 per cent to AUD293 million, with connections growing by 1.2 million to 9.8 million.

The company also announced a AUD1 billion share buyback plan, which followed an AUD750 million repurchase unveiled in February.