Telstra to splash $800m on network upgrades, ups dividend

Telstra continued to add mobile subscribers to its network, despite hiking prices in 2024 for both prepaid and postpaid customers.

“This growth was driven by more people choosing our network, with 119,000 net new mobile handheld customers and average revenue per customer growth. Mobile services revenue grew by 3.1 per cent,” Brady said.

Loading

Last May, Telstra announced plans to cull 9 per cent of its workforce – up to 2800 jobs – citing rising inflation and energy costs as well as tough market conditions. Telstra executives on Thursday said those job cuts had been completed, which had helped reduce operating expenses for the half. They did not rule out further cuts.

The results came as data released by the telecommunications ombudsman on Thursday showed customer complaints soared over the past quarter, with the 3G network shutdown having a significant impact on the reliability of mobile services for many customers.

“I want to acknowledge there are a small number of customers who have faced issues since the closure,” Brady said on Thursday. “We are working with them to identify the cause and help them with their connectivity. This includes launching a dedicated 3G help line to address customer and device-related questions.”

Telstra also announced a $750 million on-market share buyback, a plan Brady said was “consistent with Telstra’s capital management framework and demonstrated board and management confidence in Telstra’s financial strength and outlook”.

She said Telstra remained on track to achieve its forecasts for the 2025 financial year, targeting underlying EBITDA of between $8.5 billion and $8.7 billion.

“As we […] look towards our new strategy, our increased interim dividend and share buy-back reflect the confidence we have in the business now and into the future,” she said.

Telstra shares last traded at $3.92, having gone sideways over the past 12 months.