The result was largely in-line with analyst expectations and the company’s earlier guidance, with the increase in the dividend the one major surprise.
The increase in the final dividend – from 8¢ per share last financial year to 8.5¢ per share – is the first time in seven years that Telstra has lifted the dividend. It comprised a 7.5¢ ordinary dividend – up from 5¢ a year ago – and a 1¢ special dividend. The payment is fully franked, and will be paid on September 22. It makes total dividends of 16.5¢ for the full year, up from 16¢.
On a segment-by-segment basis, mobile delivered the largest earnings increase from $3.3 billion to $4 billion in the 2022 financial year, and post-paid per-user revenues were up 1.2 per cent to $48.74.
Fixed consumer & small business earnings, however, more than halved to $55 million due in large part to continued NBN costs. Still, the company said this toll had “bottomed” and had confidence in the segment going forward.
Earnings in the enterprise and international segments grew by 2.3 per cent to $15 million and by 15.2 per cent to $51 million respectively.
The result also marks an end to the company’s T22 restructure program and the start on its quest for growth under next CEO Vicki Brady – currently the chief financial officer – and its T25 strategy.
Mr Penn said T22 had set the company up to respond to the NBN threat and the transformation to a more digital economy.
“We knew we needed to fundamentally transform the company, to simplify and digitize, to set bold aspirations and radical interventions and that is what we have done,” he said.
“Telstra is a very different company today and while of course there is always more to do, we are much better equipped to face the very exciting digital future ahead.”
Mr Penn said Telstra was “by no means immune” to the “seismic economic, political and social changes” that had occurred during COVID-19, but “the transformation changes we made through T22 have prepared us well”.
“We are a much simpler, more agile, more efficient, leaner, more customer-focussed and more digitally-enabled business.”
For the 2023 financial year, the company said it aimed to deliver a total income of at least $23 billion and an underlying EBITDA between $7.8 billion and $8 billion.
Delivery of this guidance and T25 will fall to Ms Brady who will assume the role of CEO at the end of the month.