- Telstra unveiled its T25 strategy to accelerate growth and enhance customer experiences.
- The stock TLS, backed by the strategy news, closed a little stronger on the ASX.
ASX-listed Australian telecommunication giant Telstra Corporation Limited (ASX:TLS) announced its T25 strategy to accelerate growth, enhance customer experiences via predictive analytics and localised support, and capitalise on permanent shifts in how people work and live.
The T25 strategy which will be prepared on four strategic pillars is set to begin on 1 July 2022. T25 aims to deliver:
- An exceptional customer experience.
- Quality network & technology solutions.
- Sustained growth and value for shareholders.
- The place which the customers prefer to work.
The benefits that the T25 strategy aims to provide are:
- Extension of 5G network coverage to 95% of population.
- Expansion of regional coverage with 100,000 sq km of new 4G and 5G coverage.
- The Company targets to grow Telstra Plus members to 6 million by FY25.
- Higher accessibility to towers assets. (This involves 250 new towers & 700 additional tenancies).
Telstra stated that under T25 strategy, the Company aims to deliver underlying ROIC to approximately 8% by FY23 and high-teens EPS CAGR from FY21 to FY25.
Telstra’s new capital management structure, which is effective from today, involves principles to magnify fully-franked dividends and desire to grow them over time to invest for growth and return excess cash to the Company’s shareholders.
The release also revealed that Telstra’s rewards program, Telstra Plus, already has 3.5 million customers, and under T25, it will be expanded into a total sales and marketing channel.
The stock TLS closed today’s session at AU$3.950 per share.
Through the delivery on its T25 commitments, Telstra is assured that it would maintain a minimum 16 cent per share fully-franked dividend.