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Telstra Group Ltd (ASX:TLS) has announced its financial results for the fiscal year ending 30 June 2024, showcasing steady growth across various segments. Here are the key highlights from the company's FY24 performance:
- Total Income: Telstra's total income increased by 1% to $23.5 billion, reflecting stable performance across its business divisions.
- Underlying EBITDA: The company's underlying EBITDA rose by 3.7% to $8.2 billion, demonstrating its ability to drive profitability through efficient operations and strong performance in key segments.
- Statutory NPAT: While the statutory net profit after tax (NPAT) declined by 12.8% to $1.8 billion, the underlying NPAT saw an increase of 7.5% to $2.3 billion.
- Earnings Per Share (EPS): Underlying EPS grew by 5.7% to $0.185, reflecting the company's commitment to delivering value to its shareholders.
- Dividend Per Share: Telstra increased its annual dividend per share by 5.9% to $0.18, continuing its track record of providing consistent returns to investors.
Segment Performance
Telstra's mobiles business was a standout performer during FY24, contributing significantly to the company's growth. The segment reported an EBITDA increase of over $400 million, driven by strong customer growth, with more than 560,000 net new handheld customers, and improved average revenue per user (ARPU). Postpaid handheld ARPU grew by 3.3% to $52.85, while prepaid handheld ARPU rose by 3.8%, largely due to price adjustments.
The infrastructure business also delivered positive results, with InfraCo fixed and Amplitel EBITDA growing by approximately $150 million in total. This growth underscores Telstra's confidence in its infrastructure ambitions, supported by ongoing demand for its assets and investments in initiatives like the intercity fibre network.
In the fixed customer and small business segment, Telstra achieved EBITDA growth of nearly $120 million, reflecting strong cost management and ARPU growth.
However, the company's fixed enterprise segment remains a challenge, with performance falling short of expectations. Telstra has initiated actions to address these issues and has taken additional cost measures to improve this segment's profitability.
Strategic Outlook
Looking ahead, Telstra remains optimistic about its future, highlighting the critical role telecommunications will play in Australia's future. The company affirmed that its T25 strategy is on track, with growth ambitions in underlying EBITDA, EPS, and return on invested capital (ROIC) well within reach.
For FY25, Telstra is forecasting underlying EBITDA to be in the range of $8.5 billion to $8.7 billion, up from $8.2 billion in FY24. The company plans to make strategic investments of at least $0.3 billion during the year and is targeting free cash flow after lease payments, before strategic investment, of between $3 billion and $3.4 billion (compared to $3.2 billion in FY24).
Telstra's strong FY24 performance underscores its position as a key player in the Australian telecommunications sector. With steady growth in underlying earnings and a continued focus on strategic investments, Telstra remains well-positioned to deliver value to its shareholders while playing a pivotal role in Australia's technological future. The company's essential service offering and defensive earnings provide a solid foundation for continued success.
