Telstra CEO Andy Penn highlighted the strong performance of its core business in fiscal 2022 (ending 30 June) driven by mobile growth, with the company forecasting revenue in current fiscal year to increase between 4.5 per cent and 13.6 per cent.
Penn stated Telstra’s mobile performance was outstanding and noted a return to growth for its enterprise business.
The CEO noted Telstra “started to realise the benefits of setting up our infrastructure assets in our standalone InfraCo business”.
Underlying fixed costs declined by AUD454 million ($322.1 million) or 8.1 per cent, and total operating expenses AUD906 million.
CFO Vicki Brady noted roaming is expected to support fiscal 2023 growth since international travel back on the agenda.
Mobile service revenue grew 6.4 per cent year-on-year to AUD7.2 billion, with a 17.5 per cent increase in prepaid ARPU to AUD25.22. Handset sales dropped 8.9 per cent to AUD2.1 billion.
Prepaid subscribers increased 4.8 per cent to 3.3 million with post-paid 1.8 per cent higher on 8.7 million.
Telstra stated its 5G network reached 80 per cent of the population, with 3.5 million compatible devices connected.
IoT connections increased 21.9 per cent to 5.7 million, fuelling 8.9 per cent revenue growth to AUD268 million.
Net profit dropped 4.6 per cent to AUD1.8 billion, attributed to an AUD700 million decline in income related to the government’s National Broadband Network and one-off gains from asset sales the previous fiscal year.
Revenue decreased 4.7 per cent to AUD22 billion.
Capex was flat at AUD3 billion: Telstra raised its guidance for fiscal 2023 to AUD3.5 billion to AUD3.7 billion.
Penn will retire after seven years as CEO on 1 September, with Brady to take over.