Telstra (ASX: TLS) expects AUD 8.2 – 8.3bn EBITDA in FY24

Highlights

• Telstra is an ASX-listed telecommunication and technology company
• In 1HFY24, the company recorded 11.5% YoY increase in NPAT to AUD 1.0 billion
• Vanguard Investments Australia Ltd has highest stake in TLS with a shareholding of ~2.02%

Australian telecom and technology firm, Telstra Group Limited (ASX:TLS) offers nearly 22.5 million retail mobile services and 3.4 million retail bundle and data services. The ASX-listed firm has a presence across more than 20 countries.

In the first half of the financial year 2024 (1HFY24), the company witnessed a 1.2% YoY increase in income to AUD 11.7 billion and around 11.5% YoY surge in net profit after tax to AUD 1.0 billion. During the reported period, EBITDA grew by 3.8% YoY to AUD 4 billion. Performance in the first half was driven by continuous growth across mobile, fixed consumer & small business (C&SB) and infrastructure business.

The period saw 6% YoY growth in mobile service revenue, underpinned by a surge in mobile subscribers. The mobile business is central to the growth of TLS.

Top 10 shareholders of TLS

The top 10 shareholders of TLS have around 7.83% shareholding in the company, while the top four have almost 5.05% shareholding. Vanguard Investments Australia Ltd. and Norges Bank Investment Management (NBIM) have the highest stake in the firm, with a shareholding of ~2.02% and ~1.26%, respectively.

Recent business update

Through an ASX update dated 28 February 2024, the company notified about the issuance of Australian medium-term notes valued at AUD 1.2 billion. The notes are part of the TLS’ Debt Issuance Program announced on23 February 2023.

The notes comprised AUD 750 million of 10-year fixed rate notes with a coupon of 5.65% would mature on 6 March 2034.  and AUD 450 million of 7.5-year fixed rate notes with a coupon of 5.25%, maturing on 6 September 2031 and priced at a coupon of 5.25%.

Outlook

In FY24, the company expects to deliver total income of AUD 22.8 – 24.8 billion and underlying EBITDA of AUD 8.2 – 8.3 billion. The expected range of capital expenditure is AUD 3.6 – 3.7 billion and expected range of free cashflow after lease payment is AUD 2.8 – 3.2 billion in FY24.

The focus is on business growth, capital discipline, improving customer experience and investing in digital capabilities.

The company is delivering its T25 strategy which is designed to maintain network leadership, deliver premium customer experience, among other objectives.

Share performance of TLS

TLS shares closed 0.52% lower at AUD 3.81 apiece on 11 March 2023. With this, the share price of TLS has fallen by 9.97% in the last 12 months and has decreased by 4.51% in the last one month.

The 52-week high of TLS is AUD 4.46, recorded on 21 July 2023, while the 52-week low is AUD 3.75, recorded on 29 November 2023.

Note 1: Past performance is neither an Indicator nor a guarantee of future performance.

Note 2: The reference date for all price data, and currency, is 11 March 2024. The reference data in this report has been partly sourced from REFINITIV.

Disclaimer

This article has been prepared by Kalkine Media, echoed on the website kalkinemedia.com/au and associated pages, based on the information obtained and collated from the subscription reports prepared by Kalkine Pty. Ltd. [ABN 34 154 808 312; AFSL no. 425376] on Kalkine.com.au (and associated pages). The principal purpose of the content is to provide factual information only for educational purposes. None of the content in this article, including any news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations, and video is or is intended to be, advisory in nature. The content does not contain or imply any recommendation or opinion intended to influence your financial decisions, including but not limited to, in respect of any particular security, transaction, or investment strategy, and must not be relied upon by you as such. The content is provided without any express or implied warranties of any kind. Kalkine Media, and its related bodies corporate, agents, and employees (Kalkine Group) cannot and do not warrant the accuracy, completeness, timeliness, merchantability, or fitness for a particular purpose of the content or the website, and to the extent permitted by law, Kalkine Group hereby disclaims any and all such express or implied warranties. Kalkine Group shall NOT be held liable for any investment or trading losses you may incur by using the information shared on our website.