Telstra Group (TLS) H1 2025 earnings summary

Executive summary

• Achieved fourth consecutive year of first-half underlying growth, with EBITDA up 6% and NPAT up 7.1%, driven by strong cost control, disciplined capital management, and robust mobile and infrastructure performance.

• Underlying EPS increased 6% to 8.9 cents; interim fully-franked dividend of 9.5 cents per share, up 5.6% year-over-year.

• Announced an on-market share buyback of up to $750 million, reflecting confidence in financial strength and enabled by fiscal discipline and recent asset sales.

• Continued investment in 5G, fiber, and digital infrastructure, with network expansion and partnerships to accelerate AI and customer experience improvements.

• Supported over 900,000 vulnerable customers and returned $1 billion to shareholders in the last six months.

Financial highlights

• EBITDA reached $4.2 billion for the half-year ending December 2024, up 6% year-over-year.

• Net profit after tax rose 7.1% to $1.1 billion; EPS up 6% to 8.9 cents.

• Interim fully-franked dividend of 9.5 cents per share, up 5.6% year-over-year.

• Free cash flow after leases before strategic investment increased 7.6% to $1.1 billion.

• Core fixed costs reduced by 4.8% ($161 million) year-over-year.

Outlook and guidance

• FY25 guidance reaffirmed, targeting underlying EBITDA of $8.5–$8.7 billion, capex of $3.2–$3.4 billion, and FCFaL before strategic investment of $3.0–$3.4 billion.

• Focus remains on completing the T25 strategy, improving customer experience, and delivering financial growth.

• On track to achieve $350 million in core fixed cost reductions by end of FY25.

• Expect further productivity gains over the medium term, leveraging technology and AI.