Telstra reported FY24 financial results, revealing a mixed performance across its business segments, with total income rising by 1.0% to $23.5 billion. The company’s mobile division remained a standout performer, with a 4.5% increase in income to $10.7 billion, driven by strong growth in postpaid, prepaid, and IoT services, alongside a 24.6% surge in wholesale revenue. Despite these gains, Telstra faced challenges in its Fixed – Consumer & Small Business (C&SB) and Fixed – Enterprise segments, where income fell by 2.3% and 2.7% respectively, contributing to a 4.2% decline in overall EBITDA to $7.5 billion. However, the company’s underlying EBITDA grew by 3.7% to $8.2 billion, reflecting its ongoing efforts to streamline operations and reduce costs.
Telstra made significant strides in its network infrastructure, particularly through the expansion of its 5G coverage, which now reaches 89% of the Australian population. The company also continued the development of its intercity fiber network, laying the groundwork for five new routes set to begin construction in 2025. Telstra’s T25 transformation plan remains on track, focusing on enhancing customer experience, strengthening network leadership, and achieving its sustainability goals, including an increased carbon reduction target.
Despite the challenges faced in certain segments, Telstra’s commitment to infrastructure growth and customer service positions it well for the future, with key investments in spectrum and network upgrades expected to support long-term growth.
Overall Financial Performance:
- Total income increased by 1.0% to $23.5 billion.
- EBITDA declined by 4.2% to $7.5 billion, while underlying EBITDA grew by 3.7% to $8.2 billion.
- Profit for the period fell by 12.8% to $1.8 billion, with underlying profit up 7.5% to $2.3 billion.
Mobile Business Growth:
- Mobile income up 4.5% to $10.7 billion, driven by a 5.6% increase in mobile services revenue.
- Strong growth in wholesale revenue (+24.6%) and IoT services (+2.1%).
Fixed-Line Operations Challenges:
- Fixed – Consumer & Small Business income down 2.3%, impacted by declines in core connectivity and content services.
- Fixed – Enterprise income decreased by 2.7%, with notable declines in Data and Connectivity (DAC) and Network Applications and Services (NAS).
Network Expansion and Upgrades:
- Achieved 89% 5G population coverage, with 54% of mobile traffic now on 5G.
- Expanded the intercity fiber network, with five new routes planned, including key connections between major Australian cities.
- Invested $1.3 billion in spectrum licenses to enhance 5G capabilities.
Sustainability and T25 Transformation:
- Increased carbon emission reduction target to 70% by 2030, with significant investments in renewable energy projects.
- Continued progress on the T25 plan, focusing on cost reduction, network leadership, and customer experience improvements.
