Telstra dials up shareholder returns with A$1 billion buyback, posts modest profit rise

Aug 13 (Reuters) - Australia's Telstra Group unveiled a A$1 billion ($705.9 million) share buyback on Thursday and reported a marginal rise in annual profit, driven by growth ‌in its mobile business and higher customer spending.

The telecom firm posted profit attributable of ‌A$2.24 billion for the year ended June 30, up 3.2% from year-ago levels. That was slightly below a Visible Alpha ​consensus estimate of A$2.30 billion.

Telstra announced the buyback after completing a A$1.25 billion repurchase programme in June, citing earnings growth and balance-sheet strength.

Revenue at Telstra's mobile segment, its largest and accounting for about 44% of group income, grew 3.2% to A$11.37 billion in 2026, helped by higher average revenue per user (ARPU) and ‌mobile service revenue growth.

The company ⁠said ARPU rose across all categories, brands and segments during the year.

The country's top telecom firm also implemented a series of tariff increases over the past ⁠year that helped lift customer spending and support earnings growth in its core mobile division.

It forecast its 2027 earnings before interest, taxes, depreciation and amortisation after leases (EBITDAaL) of A$8.5 billion to A$8.8 billion and cash ​EBIT between ​A$4.75 billion and A$4.95 billion.

Telstra declared a higher final ​dividend of 10.5 Australian cents per ‌share, from 9.5 Australian cents last year.