Telecom operator Telstra has reported a 0.9 percent rise in revenue, reaching A$11.823 billion in H1 FY25.
Sales revenue contributions included $5.528 billion from Consumer, $1.442 billion from Business, $2.203 billion from Enterprise Australia, $1.257 billion from International, $226 million from Networks, IT, and Product, and $2.089 billion from InfraCo.
Consumer income grew 3.1 percent, driven by a 5.2 percent rise in Mobile income, while Business income fell 1.0 percent, with Mobile growing 1.4 percent but Fixed declining. Enterprise Australia continued offering advanced technology solutions.
International income dropped 4.8 percent, impacted by declines in Wholesale, Enterprise, and Digicel Pacific revenue. Networks, IT, and Product saw a 5.4 percent decline. InfraCo income rose 2.2 percent, benefiting from nbn Definitive Agreements and increased internal charges. Operating expenses fell 1.8 percent to $7.561 billion.
Capital expenditure (before investments) increased by $4 million to $1,972 million. Telstra expanded mobile coverage to over 3 million km², covering 99.7 percent of Australians, reached 91 percent 5G population coverage, and continued intercity fibre expansion with seven routes under construction and 3,000km laid by February 2025.
CEO Vicki Brady informed that more customers opted for Telstra’s network, leading to an increase in the company’s average revenue per user (ARPU). In contrast, its major competitor, Optus, reported 4 percent growth in third-quarter operating revenue, benefiting from price hikes on postpaid plans and a rise in prepaid customers.
Telstra’s T25 strategy, initially laid out in 2021, has been a key driver of its investment and cost-reduction efforts. The plan focuses on expanding 5G coverage, improving digital infrastructure, and streamlining operational expenses.
Telstra is on track to reduce core fixed costs by A$350 million by the end of the current fiscal year. While cost control remains a priority, the company is also investing heavily in its network to meet the growing demand for data and connectivity.
Looking ahead, Telstra has committed A$800 million over the next four years to upgrade its mobile network, recognizing that customer needs for technology and connectivity are evolving rapidly. As data consumption surges, Telstra aims to enhance its network capabilities, ensuring that it remains ahead of competitors in providing high-speed, reliable mobile services. The company stated that the telecom industry is at an inflection point, requiring a significant shift in how connectivity is delivered and consumed.
Telstra’s mobile income rose 4.5 percent to $5,567 million, with 3.1 percent growth in services revenue driven by postpaid, prepaid, IoT, and wholesale segments. Postpaid handheld revenue grew 2.1 percent to $2,884 million, while prepaid revenue rose 8.4 percent to $630 million despite 3G closure impacts.
Telstra’s IoT revenue increased by 2.1 percent to $145 million, and wholesale revenue surged 20.1 percent to $251 million due to growing MVNO adoption. Mobile broadband revenue declined by 7.9 percent to $304 million. Hardware revenue grew 10.9 percent to $1,268 million, while Mobile EBITDA increased 3.7 percent to $2,602 million.
Fixed – Consumer & Small Business (C&SB) income dropped 1.7 percent to $2,174 million. Core connectivity revenue grew 1.4 percent to $1,871 million, with C&SB ARPU rising 6.0 percent to $86.61, though SIOs declined by 110,000 to 3.2 million.
Fixed wireless SIOs grew by 37,000 to 105,000. Consumer content revenue fell 20.1 percent to $227 million, and business applications revenue declined 6.2 percent to $76 million. Despite income decline, Fixed – C&SB EBITDA surged 74.3 percent to $183 million, supported by cost reductions and ARPU growth.
Fixed – Enterprise income decreased 2.2 percent to $1,690 million, mainly due to an 8.4 percent decline in DAC income to $348 million from competitive pricing pressures and technology shifts. NAS income fell 0.4 percent to $1,342 million, with declines in calling applications and equipment sales, partially offset by growth in managed services, professional services, and cloud revenue. NAS EBITDA increased by $37 million to $54 million, while DAC EBITDA declined by $12 million to $42 million. Overall, Fixed – Enterprise EBITDA rose 35.2 percent to $96 million.
Baburajan Kizhakedath
