Telstra (ASX: TLS) focuses on boosting revenue, EBITDA of mobile segment

Highlights

• Telstra is an ASX-listed telecommunication and technology group which offers retail mobile services, and retail bundle and data services
• In 1HFY24, TLS’s net profit after tax jumpAed 11.5% YoY to AUD 1 billion
• State Street Global Advisors Australia Ltd has maximum stake in the firm with a shareholding of 4.22%

Australia-based Telstra Limited (ASX: TLS) is a telecommunications and technology group which provides nearly 22.5 million retail mobile services and around 3.4 million retail bundle and data services. The company offers services in more than 20 countries.  

In the first half of the financial year 2024 (1HFY24), total income of TLS increased by 1.2% YoY to AUD 11.7 billion and reported EBITDA jumped 3.8% YoY to AUD 4.0 billion, driven by the performance of its mobile business. In 1HFY24, EBITDA of mobile segment increased by almost AUD 300 million, bolstered by higher customer numbers, effective cost management and increased ARPU.

During the reported period, the company’s net profit after tax grew by 11.5% YoY to AUD 1.0 billion.

Historical financial trend

Recent business update

Through an ASX filing dated 4 July 2024, the company announced that it would appoint Craig Emery as company secretary of TLS and company secretary of Telstra Corporation Limited, effective 15 October 2024. Presently, Emery serves as legal executive and chief compliance officer of TLS and has been associated with the company since 2006.

On 21 May 2024, the company shared its plan to reset its enterprise business, improve productivity and streamline operations. The restructuring is expected to cut up to 2,800 roles by the end of 2024 and expected restructuring costs is AUD 200-250 million over FY24 and 25. Further, the company reaffirmed FY234 guidance and expects underlying EBITDA of AUD 8.4-8.7 billion in FY25

Top 10 shareholders of TLS

The top 10 shareholders of TLS have around 11.69% shareholding in the company. State Street Global Advisors Australia Ltd. and Vanguard Investments Australia Ltd. have the maximum stake in the company with a shareholding of ~4.22% and ~2.06%, respectively.

Outlook

In FY24, the company expects to report total income of AUD 22.8 billion – AUD 24.8 billion, and underlying EBITDA is expected to fall in the range of AUD 8.2 – 8.3 billion. While, in FY25, underlying EBITDA is expected to reach AUD 8.4-8.7 billion.

The company’s focus is on boosting EBITDA and revenue in the mobile sector. Moreover, the company is introducing organisational changes to sustain investments required for increasing data volumes on its network and boost connectivity for customers nationwide.

Share performance of TLS

TLS shares closed 1.35% lower at AUD 3.65 apiece on 08 July 2024 with a market cap of AUD 42.75 billion. In the last one year, TLS’s share price has dropped by 14.32% and in the last three months, it has decreased by 4.20%.

The 52-week high of TLS is AUD 4.38, recorded on 6 July 2023, while the 52-week low is AUD 3.39, recorded on 22 May 2024.

TLS Daily Technical Chart, Source: EODHD/Others

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 08 July 2024. The reference data in this report has been partly sourced from EODHD/Others.

Disclaimer

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