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Telstra Profits Plummet, Despite Lift In Mobile Customers

Telstra has reported a 15 per cent drop in earnings, and a 34 per cent plummet in net profit for the first half of FY22, pointing at an “expected decline in significant one-offs” including a marked decrease in payments from NBN Co.

EBITDA for the six months to December were $3.5 billion, down 15 per cent, with net profit dropped to $700 million.

Underlying EBITDA rose 5.1 per cent, with underlying earnings per share up 55 per cent, to 6.6 cents.

The EBITDA for the mobile unit jumped an impressive 25 per cent, with 84,000 post-paid customers added during the six months.

“This was the second consecutive half of underlying growth,” Telstra chief executive Andy Penn (pictured below) said in a statement.

“The results show we have stayed disciplined and focused on delivering what we said we would. The benefits of T22 are flowing through for our customers and our shareholders.

Andy Penn, Telstra.

“Our reported total income includes declines of around $450 million in one off NBN receipts and around $200 million in NBN commercial works, while our underlying results demonstrate the benefits of our T22 strategy.

“In addition to the impact of the NBN, the declines on a reported basis reflect the one-off gains last year, including the sale of our Velocity and South Brisbane exchange assets and the sale and lease back of our Pitt St exchange.”

Telstra’s annual guidance remained, with the board maintaining a dividend of 8 cents per share, returning $940 million to holders.

Shares are down a modest 0.61 per cent, sitting at 4.04 cents.

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