Australia’s biggest telco Telstra’s overall net profit jumped 6.5% to $1.03 billion in the six months to December 31.

Its revenue rose 1.5% to $11.6 billion thanks to a strong performance in its consumer mobile business coupled with cost-cutting measures.

Income at Telstra’s consumer business increased by 3.1% to $5,528 million including a 5.2% growth in mobile income partly offset by 1.4% decline in fixed consumer and small business income.

Postpaid handheld services revenue increased by 2.1% to $2,884 million with a 101,000 increase in services in operation (SIO).Post paid average revenue per user increased from $53.18 to $53.60.

Prepaid handheld revenue increased by 8.4% to $630 million with a 17,000 increase in unique users.

The telco noted that prepaid handheld unique users growth was impacted by 3G closure in the half as well as price increases. Telstra stopped the practice of linking subscription prices to inflation last year.

 

The company said that it will complete a $750 million share buyback after declaring its latest results, and invest a further $800 million in its 5G mobile network. Telstra shareholders will get a larger dividend, up 5.6% to 9.5c per share.

Earnings before interest, tax, depreciation and amortisation rose 6% to $4.25 billion, more than what analysts had forecasted would amount to $4.19 billion.

 

“We have expanded our coverage to more than 3 million square kilometres, now reaching 99.7% of Australia’s population. To put that in perspective, our mobile network covers more than double the area of Optus’s network, and around three times the area of the Vodafone/TPG network,” said Telstra CEO Vicki Brady, while comparing the business to its rivals.

Brady noted that the $750 million share buyback was “consistent with Telstra’s capital management framework and demonstrated board and management confidence in Telstra’s financial strength and outlook”.

She said that said core fixed costs fell 4.8%, or $161 million. “Cumulatively, we have reduced our core fixed costs by $283 million since FY22 and are on track to achieve our $350 million ambition by the end of FY25”.

Telstra’s business and enterprise division decreased 1% to $1.4 billion, and its international business slumped 4.8% to $1.26 billion.