Shares of Telstra Group (ASX:TLS) climbed to a nine-year high on Thursday after the Australian telecoms operator released interim results that showed stronger earnings and improved cash flow.
For the six months ended Dec. 31, Telstra reported profit attributable to shareholders of A$1.12 billion, a 9.4% increase from the comparable period. Group revenue held broadly steady at A$11.64 billion for the same period.
The Sydney-listed stock advanced nearly 4% to A$5.160, marking its highest price since August 2016. Management attributed the profit uplift to growth in mobile and infrastructure services combined with ongoing cost discipline.
Telstra said cash earnings and operating momentum also strengthened in the half, reflecting progress under its multi-year Connected Future 30 strategy. The company pointed to these operational improvements as contributors to its improved financial performance.
On returns to shareholders, Telstra declared a partially franked interim dividend of 10.5 cents per share, up from 9.5 cents in the prior comparable period. In addition, the firm expanded its on-market share buyback programme, increasing the potential repurchase to up to A$1.25 billion in FY26.
Management tightened its FY26 guidance for underlying EBITDA after lease amortisation, or EBITDAaL, to a range of A$8.2 billion to A$8.4 billion, down from the previous range of A$8.15 billion to A$8.45 billion. The company said the narrower guidance band reflects momentum under the Connected Future 30 strategy and disciplined cost control.
Context and implications
- Telstra's half-year result highlights growth in its mobile and infrastructure service lines alongside sustained cost management.
- Stronger cash earnings and an expanded buyback indicate a focus on shareholder returns in the near term.
- The tightened FY26 EBITDAaL guidance suggests management has higher confidence in near-term operating momentum, while the narrower range reflects updated expectations.
Investors reacted positively to the combination of rising profit, a higher interim dividend, and an enlarged buyback capacity, bidding shares to their highest level in nine years.