Telstra dials up shareholder returns with A$1 billion buyback, posts modest profit rise

Australia's Telstra Group announced a A$1 billion ($705.9 million) share buyback and reported a slight increase in annual profit on August 13. The telecom firm's profit attributable to shareholders rose to A$2.24 billion for the year ending June 30, a 3.2% increase from the previous year. This modest growth was slightly below the Visible Alpha consensus estimate of A$2.30 billion.

Revenue from Telstra's mobile segment, the largest contributor to group income at around 44%, expanded by 3.2% to A$11.37 billion in 2026, driven by higher average revenue per user (ARPU) and mobile service revenue growth. The company implemented various tariff increases throughout the year, which helped boost customer spending and support earnings growth in its core mobile division.

Telstra also declared a higher final dividend of 10.5 Australian cents per share, up from 9.5 Australian cents the previous year. The company's focus on mobile and infrastructure businesses aims to secure its position as Australia's leading telecommunications provider in a competitive three-player market. Telstra's CEO, Vicki Brady, emphasized continued investment in network resilience and customer experience under its Connected Future 30 strategy.

Despite recent network outages that affected millions of users and sparked criticism over a software fault-triggered nationwide outage, Telstra's performance provides some relief to its leadership. However, reputational damage persists, and regulatory inquiries may continue throughout the year. Shares of Telstra fell 0.5% to A$4.975 in early trade.