Telstra Group Limited (ASX: TLS) released its financial results for the fiscal year 2024, concluding on 30 June 2024, on 15 August 2024.
Telstra Corporation Shares delivered an increase in Underlying EBITDA of nearly $300 million, representing a growth of 3.7%, bringing the total to $8.2 billion. This increase in Underlying EBITDA positively impacted the Underlying Net Profit After Tax, which rose by 7.5% to reach $2.3 billion.
The Mobile and infrastructure segments, including InfraCo Fixed, Amplitel, and International, accounted for 96% of the Underlying EBITDA and exhibited robust growth rates of approximately 6% or more. Conversely, the Enterprise segment did not perform as expected. Throughout the year, the company-initiated measures to tackle the challenges faced by the Enterprise division and implemented additional cost-reduction strategies. The reported earnings reflect these strategic decisions, which, along with other adjustments, resulted in substantial one-off net costs amounting to $715 million.
Consequently, Reported EBITDA experienced a decline of 4.2%, totalling $7.5 billion, while Reported Net Profit After Tax fell by 12.8% to $1.8 billion. Telstra Dividend continues to grow benefiting its long-term shareholders. In FY24, the annual dividend was enhanced by 5.9% to 18 cents per share.
During the reporting period, the company allocated $1.3 billion towards spectrum licenses, which included $616 million for the 850 MHz band and $546 million for the 3.4 to 3.7 GHz band, aimed at enhancing the 5G experience for mobile users across Australia. In February 2024, Telstra set a new global benchmark for 5G uplink speed in collaboration with Ericsson and Qualcomm Technologies, Inc., enabling customers to benefit from faster and data that is more dependable uploads on their 5G Standalone networks.
Telstra ASX is advancing considerably in its T25 strategy, which focuses on enhancing customer experiences and resetting its Enterprise business. Notably, the company has raised its 5G population coverage to 89%, bringing it closer to the goal of 95%. Additionally, the expansion of the company's land coverage, combined with its superior speed, underscores its potential to seize a larger share of the market.
Telstra demonstrates a robust commitment to enhancing and broadening its capabilities and customer experiences, which may enable it to realize a significant breakthrough in its historically stable financial performances. This is facilitated by the ongoing substantial investments aimed at enhancing its nationwide connectivity, alongside its already exemplary industry-leading fundamentals. While the recent financial expansion has been affected by challenges within its Enterprise division, proactive measures to optimize operations are expected to bolster future growth. This is particularly relevant as the company approaches the conclusion of its T25 strategy, which is poised to markedly transform its already solid operational framework.
Source: Company’s Report
Veye Pty Ltd(ABN 58 623 120 865), holds (AFSL No. 523157 ). All information provided by Veye Pty Ltd through its website, reports, and newsletters is general financial product advice only and should not be considered a personal recommendation to buy or sell any asset or security. Before acting on the advice, you should consider whether it’s appropriate to you, in light of your objectives, financial situation, or needs. You should look at the Product Disclosure Statement or other offer document associated with the security or product before making a decision on acquiring the security or product. You can refer to our Terms & Conditions and Financial Services Guide for more information. Any recommendation contained herein may not be suitable for all investors as it does not take into account your personal financial needs or investment objectives. Although Veye takes the utmost care to ensure accuracy of the content and that the information is gathered and processed from reliable resources, we strongly recommend that you seek professional advice from your financial advisor or stockbroker before making any investment decision based on any of our recommendations. All the information we share represents our views on the date of publishing as stocks are subject to real time changes and therefore may change without notice. Please remember that investments can go up and down and past performance is not necessarily indicative of future returns. We request our readers not to interpret our reports as direct recommendations. To the extent permitted by law, Veye Pty Ltd excludes all liability for any loss or damage arising from the use of this website and any information published (including any indirect or consequential loss, any data loss, or data corruption) (as mentioned on the website www.veye.com.au), and confirms that the employees and/or associates of Veye Pty Ltd do not hold positions in any of the financial products covered on the website on the date of publishing this report. Veye Pty Ltd hereby limits its liability, to the extent permitted by law to the resupply of services.