Telstra has posted a $2.1 billion net profit on the back of strong growth in its mobile revenues in its the half year results for the period ended 31 December 2014. The Australia’s largest telecommunications company said that it will relaunch a plan to allow shareholders to reinvest their dividend back in the company for the first time since 2008. Telstra’s results for the six-month period showed that revenues rose by 1.6 per cent to $13.0 billion, reflecting an increase in earnings per share of 23.4 per cent to 16.9 cents. Telstra's total number of mobile subscribers grew by 366,000 to 16.4 million during the same period.
Revenue from Telstra’s mobile business increased 9.6 per cent to $5.3 billion. Fixed data revenue grew 7.8 per cent, and with more customers moving onto bundled plans, Telstra's fixed voice business registered the lowest decline in five years at 6.9 per cent. Overall, revenue from Telstra’s fixed business declined 1.7 per cent, to $3.5 billion.
Telstra's Chief Executive Officer, David Thodey said the results demonstrated Telstra’s strategy of improving customer advocacy, driving value from its core business and building new growth businesses continued to create value for shareholders. He also said investing in new businesses and growing telecommunications services in Asia was essential for Telstra’s growth ambitions and significant progress had been made during the first half of 2015.
David Thodey, CEO, Telstra
We continue to provide our customers with access to Australia’s leading mobile network. Our 4G coverage is now at 90 per cent of the Australian population and we aim to have 94 per cent covered by the middle of the year. We also launched our new 4GX services as a result of a $1.25 billion dollar investment in 700 MHz spectrum, which is now offering customers in over 1,000 towns and suburbs some of the fastest mobile data speeds in the world, with top speeds on compatible devices on 4GX up to twice as fast as 4G. There are already over one million 4GX compatible devices in customers’ hands today and that number will grow during the year.
