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Telstra Boosts Dividend Despite Weak Profit In H2 2015

Australia

Telstra Boosts Dividend Despite Weak Profit In H2 2015

Australian telecom operator Telstra has released its revenue growth chart for July – December period. Despite showcasing a weak net profit growth of 0.8% to AUD 2.1 billion, the company has lifted its interim dividend by 3.3% to 15.5 cents per share. This has given its shareholders a total payout of $1.9 billion.

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The company’s EBITDA increased 1.7% to AUD 5.4 billion. Its overall revenue is registered at AUD 14.2 billion. When the retail turnover surged up to 2.1% marking AUD 8.7 billion, its wholesale turnover is registered at AUD 1.3 billion, an increase of 5.3%.  Its CAPEX during the six-month period increased 20% to AUD 2.1 billion.

Telstra’s high operating expenses is a reason for its flat net profit, which surged 14.2% to AUD 8.8 billion. The factors that drove its expenses high are the expansion of business, including the acquisition of Pacnet in April 2015. This is its first six months operating period with Pacnet, which it acquired in April 2015.

Telstra’s mobile revenue too showed an increase, of 3.7% to AUD 5.5 billion. The sales of equipment marked this rise, up 18.5% to AUD 1.12 billion. In terms of subscribers, the telecom operator added 235,000 customers to its base. Among this 80,000 are postpaid users. The total subscriber base of Telstra now stands at 16.9 million.

The revenue from landline marked a fall to AUD 3.6 billion. During the last quarter, Telstra also earned AUD 636 million under NBN agreement with the Government. “The company plans to simplify its business, drive down costs, and help customers experience what technology can do for their lives and businesses. As a result, our net promoter score result was 3 points higher than the first half of FY15,” said Andrew Penn, CEO, Telstra.

Ria Lakshman. V is a lead news writer at The Telecom Times. She studied Journalism at Manipal School of Communication and proceeded to work in newspapers and magazines, with technology as her focus area. Passionate about Telecommunications sector, her move to 'The Telecom Times' was a natural choice. Alongside, she also writes for Telecom Talk, where she covers news and tech commentaries in the sector of telecom. In the free time, Ria loves to go camping, read books, or sketch illustrations. She also runs a local design studio and promotes eco-friendly crafts. Ria can be found sharing her knowledge and insights on Twitter.

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