Telstra Group (TLS) H1 2025 earnings summary

Executive summary

• Achieved fourth consecutive year of first-half underlying growth, with EBITDA up 6.0% and NPAT up 7.1%, driven by mobile, infrastructure, and disciplined cost management.

• Underlying EPS increased 6.0% to 8.9 cents; interim fully-franked dividend of 9.5 cents per share, up 5.6% year-over-year.

• Announced an on-market share buyback of up to AUD 750 million, enabled by fiscal discipline and recent asset sales.

• Maintained leadership in mobile and digital infrastructure, with continued investment in 5G, fiber networks, and AI capabilities.

• On track with T25 strategy, focusing on digital leadership, customer experience, and network expansion.

Financial highlights

• Total income rose 0.9% to $11.8b; revenue (excluding finance income) up 1.5% to $11,602 million.

• EBITDA reached $4.2b, up 6.0% year-over-year; underlying EBITDA up 5.8%.

• Net profit after tax up 7.1% to $1.1b; EPS at 8.9c, up 6.0%.

• Interim fully-franked dividend of 9.5c per share, up 5.6% year-over-year.

• Free cash flow after leases before strategic investment increased 7.6% to $1.1b; free cashflow surged 54.1% to $1,288 million.

Outlook and guidance

• FY25 guidance remains unchanged, targeting underlying EBITDA of $8.5–$8.7b, capex of $3.2–$3.4b, and FCFaL before strategic investment of $3.0–$3.4b.

• On track to achieve AUD 350 million in core fixed cost reductions by end of FY25.

• Focus remains on finishing T25 strategy, lifting customer experience, and delivering financial growth.

• Expect further productivity gains over the medium term, leveraging technology and AI.