Australia's Telstra posts 3.2% rise in annual profit, unveils further $706 million buyback

Australia's Telstra Group announced a modest 3.2% increase in annual profit, reaching A$2.24 billion for the year ending June 30, 2026. The growth was fueled by a surge in its mobile business and increased customer spending. The company disclosed a share buyback of A$1 billion, following a previously completed A$1.25 billion repurchase program.

Telstra's mobile segment, constituting around 44% of the group's income, saw its revenue grow by 3.2% to A$11.37 billion in 2026. This growth can be attributed to a higher average revenue per user (ARPU) and an uptick in mobile service revenue. The company also implemented a series of tariff increases throughout the year, further boosting customer spending and supporting earnings growth in its core mobile division.

Telstra forecasted earnings before interest, taxes, depreciation, and amortization (EBITDA) for 2027 to range between A$8.5 billion and A$8.8 billion, with cash EBIT between A$4.75 billion and A$4.95 billion. The company declared a higher final dividend of 10.5 Australian cents per share, up from 9.5 Australian cents in the previous year.

As Australia's telecom market becomes increasingly competitive, Telstra is doubling down on growth through investments in its mobile and infrastructure businesses. The company aims to solidify its position as the leading telecommunications provider in the country despite recent network outages that have affected millions of users.