Telstra Group (TLS) H1 2025 earnings summary

Executive summary

• Achieved fourth consecutive year of first-half underlying growth, with EBITDA up 6.0% to $4.2 billion and NPAT up 7.1% to $1.1 billion, driven by strong cost control, disciplined capital management, and robust mobile and infrastructure performance.

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

• Announced up to $750 million on-market share buy-back and returned over $1 billion to shareholders in the last six months.

• Continued investment in 5G, fiber, and digital infrastructure, supporting national connectivity and resilience.

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

Financial highlights

• Total income rose 0.9% to $11.8 billion; EBITDA up 6.0% to $4.2 billion; underlying EBITDA up 5.8%.

• Net profit after tax increased 7.1% to $1.1 billion; EPS at 8.9 cents, up 6.0%.

• Operating expenses reduced by 1.8%, with core fixed costs down 4.8% ($161 million) year-over-year.

• Free cashflow after lease payments before strategic investment up 7.6% to $1.1 billion.

• Interim dividend of 9.5 cents per share, fully franked, up 5.6%.

Outlook and guidance

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

• Focus on completing T25 strategy, improving customer experience, financial growth, and operational simplification.

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

• Expect higher depreciation and amortization to continue, except for a decrease in 2H FY25 due to asset retirements.