Telstra has reported stronger mobile revenue, higher average revenue per user, subscriber growth and lower postpaid churn in fiscal 2026, while expanding its AI capabilities, digital customer services, mobile network and Aura fibre infrastructure.
Total income declined 0.9 percent to A$23.4 billion from A$23.6 billion, primarily due to divestments, product rationalisation and foreign-exchange movements. EBITDA after leases increased 3 percent to A$8.2 billion, while underlying EBITDA after leases rose 4 percent from A$8.021 billion to A$8.341 billion.
EBIT increased 1.7 percent to A$4 billion, while net profit after tax rose 2.7 percent to A$2.4 billion.
Telstra mobile revenue reaches A$11.37 billion
Mobile income increased 3.2 percent to A$11.368 billion from A$11.015 billion. Second-half mobile income reached A$5.599 billion, compared with A$5.448 billion in the second half of fiscal 2025 and A$5.769 billion in the first half of fiscal 2026.
Mobile services revenue rose 4.8 percent from A$8.508 billion to A$8.919 billion, supported by price changes, wholesale growth and higher ARPU across mobile categories.
Second-half mobile service revenue was A$4.459 billion, compared with A$4.283 billion a year earlier and A$4.460 billion in the first half.
Postpaid handheld revenue increased 3.4 percent from A$5.793 billion to A$5.991 billion. Second-half revenue reached A$2.991 billion, compared with A$2.909 billion a year earlier and A$3 billion in the first half.
Prepaid handheld revenue grew 6.6 percent from A$1.285 billion to A$1.370 billion. Revenue was A$686 million in the second half, up from A$655 million a year earlier and A$684 million in the first half.
Mobile broadband revenue increased 2.9 percent from A$595 million to A$612 million despite a decline in connections. Second-half revenue was A$302 million, compared with A$291 million a year earlier and A$310 million in the first half.
Internet of Things revenue advanced 5.1 percent from A$293 million to A$308 million. IoT generated A$151 million in the second half, compared with A$148 million a year earlier and A$157 million in the first half.
Wholesale mobile revenue surged 18.6 percent from A$522 million to A$619 million, supported by subscriber additions, 8.8 percent ARPU growth and higher bulk-messaging volumes. Second-half wholesale revenue reached A$321 million, up from A$271 million a year earlier and A$298 million in the first half.
Roaming income was A$246 million in FY26, comprising A$130 million in the first half and A$116 million in the second half, compared with A$259 million in FY25.
Hardware, interconnection and other mobile income declined 2.3 percent from A$2.507 billion to A$2.449 billion. Hardware revenue alone decreased 1.2 percent to A$2.331 billion due to lower sales of handsets, accessories and wearables.
Telstra mobile subscribers increase to 26 million
Total retail mobile services in operation increased 4.3 percent, or 1.079 million, from 24.948 million to 26.027 million. Telstra added 498,000 retail mobile services during the second half after adding 581,000 in the first half.
Mobile handheld users increased 1.9 percent by 274,000 to 14.806 million from 14.532 million. The total comprised 8.879 million postpaid handheld services, 3.067 million prepaid handheld unique users and 2.860 million wholesale users.
Telstra added 39,000 retail handheld users and 235,000 wholesale users during FY26.
Postpaid handheld connections declined by 7,000 to 8.879 million from 8.886 million. The company added 16,000 in the first half before losing 23,000 in the second half.
Prepaid handheld unique users increased by 46,000 to 3.067 million from 3.021 million. Telstra added 21,000 users in the first half and 25,000 in the second half.
Wholesale unique users increased 9 percent, or 235,000, from 2.625 million to 2.860 million. Wholesale additions included 98,000 in the first half and 137,000 in the second half.
Mobile broadband connections declined 5.6 percent, or 149,000, to 2.502 million from 2.651 million. The total fell by 84,000 in the first half and 65,000 in the second half.
IoT connections jumped 12.5 percent, or 1.231 million, to 11.074 million from 9.843 million. Telstra added 653,000 IoT connections in the first half and another 578,000 in the second half.
Satellite connections declined 2.9 percent to 33,000 from 34,000 and were unchanged from December 2025.
Telstra ARPU rises as postpaid churn improves
Average mobile handheld revenue per user increased 3.7 percent from A$43.71 per month to A$45.33.
Full-year postpaid handheld ARPU increased 3.8 percent from A$54.15 to A$56.20. In the June 2026 half, postpaid ARPU was A$56.06, up 3.4 percent from A$54.23 in the June 2025 half but 0.3 percent below A$56.22 in the December 2025 half.
Full-year prepaid handheld ARPU increased 7.2 percent from A$34.99 to A$37.50. June-half prepaid ARPU rose 4.7 percent to A$37.39 from A$35.71 but was 0.6 percent below the first-half figure of A$37.63.
Full-year mobile broadband ARPU increased 9.3 percent to A$19.80. June-half mobile broadband ARPU jumped 10.8 percent from A$17.91 to A$19.84 and was 0.1 percent higher than A$19.82 in the December half.
Postpaid handheld churn improved by 0.5 percentage points to 12.8 percent for FY26 from 13.3 percent in FY25. Second-half churn declined to 13.1 percent from 14 percent a year earlier and was below the first-half level of 13.2 percent.
Telstra said the improvement followed the migration of customers to its new digital stack and the absence of one-off factors recorded in FY25.
Fixed broadband ARPU rises despite subscriber losses
Telstra’s Fixed Consumer and Small Business income declined 2.8 percent from A$4.299 billion to A$4.177 billion. Second-half income was A$2.057 billion, compared with A$2.125 billion a year earlier and A$2.120 billion in the first half.
Core connectivity revenue fell 1.8 percent from A$3.706 billion to A$3.641 billion. Consumer content and services revenue decreased 5.9 percent from A$444 million to A$418 million, while business applications and services revenue dropped 20.8 percent from A$149 million to A$118 million.
Broadband bundles and standalone data connections declined 3.7 percent, or 117,000, from 3.177 million to 3.060 million. Connections fell by 58,000 in the first half and 59,000 in the second half.
The decline included a loss of 134,000 NBN connections, reducing the NBN base from 2.958 million to 2.824 million. Belong fixed-data connections fell 5.3 percent to 251,000 from 265,000.
However, 5G fixed-wireless connections increased by 25,000 to 146,000, including 5,000 additions during the second half. Growth in fixed wireless and satellite internet partly offset the continued decline in NBN broadband connections.
Full-year broadband bundles and standalone data ARPU increased 2.6 percent from A$87.08 to A$89.32, supported by price increases and customer migration to higher-speed plans.
June-half broadband ARPU increased 1.6 percent from A$87.48 to A$88.90 but was 0.9 percent below the A$89.71 recorded in the December half.
Foxtel from Telstra connections declined 12.3 percent from 316,000 to 277,000, including a reduction of 19,000 during the second half.
Telstra expands digital customer service with AI
Telstra said 87 percent of consumer interactions are now completed through digital self-service following the expansion of AI and self-service capabilities. The company completed the migration of consumer customers to its new digital technology stack and decommissioned the legacy platform.
It also launched Customer iQ to provide real-time customer insights, improve customer experiences and help optimise network investment.
Telstra’s Cleaner Pipes systems blocked an average of 24 million scam calls, close to 5 million scam text messages and tens of millions of scam and potentially unwanted emails every month.
Telstra reduced the number of data platforms by 15 during FY26 and is targeting a simplified architecture comprising three platforms. Its AI Control Plane is designed to provide central oversight of AI costs, adoption, performance, risk and compliance.
Aura Network targets AI and cloud demand
Telstra is expanding its digital infrastructure to capture demand from cloud and AI providers. It has secured long-term contracts with Google, Amazon Web Services and Firmus, while Microsoft is a foundational partner for the Aura Network.
The company is more than halfway through the Aura Network construction programme. It has deployed more than 8,500 kilometres of fibre and completed six routes ready for service.
Telstra increased its projected Aura Network and Viasat strategic investment to approximately A$1.8 billion between FY23 and FY28. It invested A$1.3 billion between FY23 and FY26 and expects FY27 investment of A$200 million to A$300 million.
Telstra capex reaches A$3.37 billion
Capital expenditure declined 0.7 percent from A$3.388 billion to A$3.365 billion. Higher mobile-network investment was offset by lower IT spending following the completion of the consumer digitisation programme.
Strategic investment increased 40.6 percent from A$325 million to A$457 million, including investment in the Aura Network and Viasat projects.
InfraCo Fixed recorded A$499 million in capex, in addition to the A$457 million of strategic investment in Aura and Viasat.
Telstra has invested more than A$19 billion in capex and spectrum over the past five years. This included more than A$9.5 billion invested in its Australian mobile network, of which A$3.8 billion was directed to regional areas.
Annual investment in networks and digital infrastructure increased by approximately A$800 million between FY21 and FY26.
During FY26, Telstra upgraded nearly 1,200 mobile sites with 5G Advanced capability, constructed more than 150 new mobile sites and added backup power to more than 1,800 network sites. Its Network Experience Index improved by 1.6 points.
Telstra’s investment strategy combines mobile-network resilience, AI-enabled customer operations, fixed wireless, satellite connectivity and long-distance fibre infrastructure as the company works toward its FY30 targets of mid-single-digit annual cash earnings growth and a 10 percent underlying return on invested capital.
BABURAJAN KIZHAKEDATH
