Telstra posted improved financials for its fiscal H1 2023 (ending 31 December 2022), fuelled by double-digit growth in prepaid revenue and handset sales.
CEO Vicki Brady attributed the gains to continued momentum across its mobile business and support from the acquisition of Digicel Pacific.
In Telstra’s earnings statement, Brady noted the company remains committed to its goal of cutting expenses by AUD500 million ($346.6 million) by the end of fiscal 2025 despite inflationary impacts.
Mobile service revenue grew 9.3 per cent year-on-year to AUD3.7 billion, aided by higher international roaming and a 28.7 per cent increase in prepaid revenue to AUD556 million.
Prepaid ARPU rose 20.7 per cent to AUD27.40 and post-paid 4.5 per cent to AUD50.47.
Handset sales increased 10.2 per cent to AUD1.3 billion.
Prepaid subscriber numbers rose 8.2 per cent to 3.5 million and post-paid 1.6 per cent to 8.6 million.
IoT revenue increased 7.8 per cent to AUD139 million, with connections rising 24 per cent to 6.4 million.
Net profit grew 23.9 per cent to AUD865 million and revenue 6.4 per cent to AUD11.6 billion.
Capex increased 19.6 per cent to AUD1.7 billion. The outlay for the full year is expected to increase to between AUD3.5 billion and AUD3.7 billion, compared with AUD3 billion in fiscal 2022.
The operator forecast revenue for fiscal 2023 to come in at the bottom end of an earlier guidance due to lower-than-expected sales of mobile devices and fixed products.
Its previously forecast revenue at between AUD23 billion and AUD25 billion, up from AUD22 billion in fiscal 2022.