Telstra announces A$1 billion share buy-back as net profit jumps 14pc
Telstra, Australia's largest telephone company, said it would buy back A$1 billion (HK$7.2 billion) in shares and also raised its dividend as full-year profits came in above forecasts.
Telstra, Australia's largest telephone company, said it would buy back A$1 billion (HK$7.2 billion) in shares and also raised its dividend as full-year profits came in above forecasts.
Net profit jumped 14 per cent to its highest level in more than five years led by growth in its mobile services division. Revenue also expanded 3.5 per cent after being mostly flat for the past five years, hurt by a rise in mobile phone use that drove households to dispense with landlines.
Telstra said it expected revenue and earnings before interest, taxes, depreciation and amortisation for the current financial year to be flat because it would not include earnings from Hong Kong mobile business CSL. Telstra sold its 76.4 per cent stake in CSL in December.
Net profit was A$4.3 billion for the year to June 30, beating a A$4.1 billion forecast from Reuters Starmine SmartEstimates based on 11 analysts. Revenue rose to A$25.3 billion.
We have the flexibility to do both [a share buyback and investment]
After lifting its interim dividend for the first time in eight years earlier this year, Telstra raised its final dividend by 7.1 per cent to 15 Australian cents per share, taking its total for the year to 29.5 Australian cents.
The share buy-back was forecast by some analysts while others had said the company would prefer to use proceeds from sales of stakes in CSL and directories business Sensis to invest in new companies.