Telstra Group (TLS) Investor Day 2025 summary

Strategic direction and future plans

• Launched the Connected Future 30 strategy to reinforce leadership in connectivity, digital infrastructure, and network innovation, aiming to be Australia's top choice for connectivity by 2030.

• Strategy is structured around three layers: customer engagement, network as a product, and digital infrastructure, with a goal for most connectivity revenue to be enabled by Network-as-a-Product by FY30.

• Committed to sustained investment, including over $40b in capex and spectrum over 10 years, and ongoing expansion of intercity fibre and digital infrastructure.

• Focus on technology leadership, including AI adoption, autonomous networks, and next-gen connectivity such as satellite-to-mobile and 6G.

• Four enablers—people & culture, technology leadership, sustainability, and financial discipline—underpin delivery of the strategy.

Financial guidance and capital management

• Targeting mid-single-digit CAGR growth in cash earnings and a 10% underlying ROIC by FY30, up from around 8% currently.

• FY25 guidance: underlying EBITDA of $8.5b–$8.7b, BAU capex of $3.2b–$3.4b, strategic investment $0.3b–$0.5b, and free cashflow after lease payments of $3.0b–$3.4b.

• Strategic investments, including intercity fibre and Viasat, are expected to deliver mid-teens IRR and ~9-year cash payback.

• Maintains a disciplined capital management framework, prioritizing sustainable, growing fully-franked dividends, with buy-backs preferred for additional returns.

• Updated net debt to EBITDA comfort zone to 1.75–2.25x, reflecting improved cashflow quality.

Business developments and innovation

• Major investment in 5G Advanced, with AUD 800 million allocated over four years to enhance network reliability, capacity, and energy efficiency.

• Expanded digital infrastructure with Australia’s largest intercity fibre network and over 8,000 towers, supporting hyperscalers and major projects.

• Launching satellite-to-mobile messaging and expanding intercity fiber routes, with the first Sydney-Canberra route going live in June and further routes planned.

• AI and automation are central to operational efficiency, customer experience, and network management, with a joint venture with Accenture accelerating the AI roadmap.

• Leveraged global API aggregators and participation in Aduna joint venture and GSMA CAMARA standards to monetize network capabilities and enable API-driven engagement for enterprise customers.