If investors were to screen ASX listed companies, they would come across very few growth oriented dividend paying companies. However, this stock suits passive income investors and long term investors alike.
Telstra Group Limited (ASX: TLS)
On February 20, 2025, Telstra Group Limited (ASX: TLS) and Telstra Corporation Limited (ASX: TL1) released their financial and operational performance report for the first half of the fiscal year 2025 (H1 FY25). The report established continued growth, strategic advancements, and the company’s commitment to delivering value to its stakeholders.
TLS is among the growing companies to invest in having delivered a fourth consecutive year of first half underlying growth indicating momentum. Telstra Group Limited has reported strong growth for the first half of FY25, with key financial metrics showing positive trends. EBITDA rose by 6.0%, reaching $4.2 billion, while profit for the period grew by 7.1%, amounting to $1.1 billion. Earnings per share (EPS) also increased by 6.0% to 8.9 cents. The company remains confident in its financial outlook and has kept its full-year guidance unchanged.
Telstra has declared a fully franked interim dividend of 9.5 cents per share, a 5.6% increase compared to the previous year. Additionally, Telstra has announced an on-market share buy-back program of up to $750 million, reflecting strong financial discipline and confidence in its business performance.
Key Business Highlights
>Continued Expansion in Telecommunications Services:
>Strategic Investments and Innovations:
- Investments in technology and infrastructure, potentially focusing on cloud services, cybersecurity, and network resilience.
- Enhancements in customer service and digital transformation initiatives.
>Operational Efficiency and Cost Optimization:
- Measures taken to enhance profitability and operational efficiencies.
- Strategies to mitigate market risks and economic uncertainties.
Telstra has invested heavily in Australia's digital infrastructure, pouring over $40 billion in capex and spectrum over the past decade. The company is focused on expanding its intercity fibre network and mobile network coverage. Telstra's mobile network now covers 99.7% of Australia’s population, reaching 3 million square kilometers. The company is also focused on enhancing its 5G mobile network and will invest an additional $800 million to further improve its mobile services. This investment will be supported by a partnership with Ericsson to integrate next-generation technology into the network, ensuring better performance, speed, and reliability for customers in the future.
Telstra's report suggests that the company remains a dominant player in the Australian telecommunications market, supported by its continued network enhancements and customer-focused strategies.
This H1 FY25 market release from Telstra underscores the company’s strong financial performance and strategic direction. As one of Australia’s leading telecommunications providers, Telstra continues to deliver value through innovation, operational efficiencies, and customer-focused initiatives.
(Source: Company's Report)
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