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While Telstra’s mobile business is booming, its enterprise division is still struggling. Brady said in May Announces plans to cut 2,800 jobs at TelstraThe enterprise division has been hit hardest. She said at the time that the move would help the telco remain competitive and make the necessary investments to support the growth in data volumes in its business, saving the company $350 million.
Telstra has booked $247 million in redundancy costs related to these job cuts.
“While the majority of our businesses are performing strongly, it is clear that fixed businesses are still far from where we need them to be,” she said Thursday..
“We began taking actions this year to address the challenges we faced in our enterprise business and have taken additional steps on our overall costs.”
The company will pay a final dividend of 9¢ per share, bringing the total for the year to 18¢ per share.
The company raised its underlying profit forecast to between $8.5 billion and $8.7 billion, from a previous range of $8.4 billion to $8.7 billion. Telstra shares were up slightly on Thursday, rising 2.5 per cent to $3.96.
Anna Milne, senior equity analyst at Wilson Asset Management, said it was a strong result for Telstra.
The company will pay a final dividend of 9¢ per share, bringing the total for the year to 18¢ per share.Credit: Steven Siewert
“Mobile was strong and will continue to grow next year as prices rise,” Milne said. “Enterprise was in line with lower expectations and it is encouraging that this will not deteriorate further.”
However, eToro market analyst Josh Gilbert sees the figures as mixed.
“Its fixed enterprise business continued to suffer following a weak performance in the first half of the year,” he said.
“While things are pretty bad right now with profits down and guidance for FY2025 slightly scaled back, the one positive is that the dividend is rising again. Still, the share price is flat for five years so only the dividend is the saviour for investors and the lack of growth over that time is clearly disappointing.
“Ultimately, this is a disappointing result for Telstra shareholders as they appear to be getting no respite … the company undoubtedly has a lot of work to do in the short term.”
Telstra on Wednesday announced a delay in shutting down its 3G network and said it would launch a public safety campaign to address concerns about public safety and the 300 emergency service. When the 3G network is shut down on October 28, some older phones will not be able to make 300 emergency calls.
Telstra owns 35% of Foxtel, which is now listed after News Corp bought it The sale was announced last week Pay-TV operator. News owns a 65% majority stake in Foxtel.
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Brady said her telco would support the “right offer”.
“No decisions have been made yet,” Brady said.
“What’s been really pleasing is seeing how Patrick (Delaney, Foxtel CEO) and his team have really transformed the business over the last few years… It’s a sea change from where it was years ago,” she said.
“From our perspective, if someone were to buy Foxtel at the right price, then we would support News Corp.”
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