Telstra CEO Andrew Penn (pictured) highlighted gains by its mobile business in its fiscal H1 2022 (ending 31 December), as most of the Australian operator’s other units recorded drops in sales.
In an earnings release, Penn stated Telstra’s mobile business benefitted from increased investment in infrastructure and customer-centric plans, which resulted in a 5 per cent increase in post-paid ARPU and 6.3 per cent service revenue growth.
Penn noted Telstra’s overall results reflected positive momentum from a four-year restructuring plan ending in the current fiscal year and puts it in a strong position as it transitions to its T25 initiative.
Telstra noted progress in cost-cutting efforts, with underlying fixed expenditure down AUD254 million ($182.7 million) year-on-year and total operating expenses declining by AUD644 million.
It is on track to cut fixed costs by AUD430 million in fiscal 2022.
Fiscal H1 net profit fell 34 per cent to AUD700 million, due to a AUD450 million drop in National Broadband Network (NBN) receipts and one-off gains from asset sales in the comparable period of fiscal 2021.
Total revenue dropped 9.4 per cent to AUD10.9 billion, with fixed down 6.8 per cent to AUD2.3 billion, wholesale 21 per cent to AUD252 million and infrastructure 14.3 per cent to AUD1.2 billion.
Mobile turnover was flat at AUD4.7 billion, with equipment sales down 17.2 per cent to AUD1.2 billion, offsetting the service revenue gains.
IoT revenue increased 9.3 per cent to AUD129 million.
Post-paid subscribers rose 1.2 per cent to 8.7 million.
Penn said 5G population coverage reached 77.5 per cent at end-2021, with nearly 2.8 million compatible devices connected to its mobile network.
Capex fell 2.5 per cent to AUD1.4 billion, with Telstra tipping full fiscal year outlay at AUD2.8 billion to AUD3 billion compared with AUD3.1 billion in fiscal 2021.Subscribe to our daily newsletter Back