What is the primary driver behind Telstra’s recent profit recovery?

Aggressive cost-cutting measures implemented following the 2H24 slump have successfully restored profit margins to levels that match or exceed 2H23 peaks. This operational efficiency allowed the company to maintain a $1.6 billion capital expenditure program during the 1H25 period.

How dominant is the mobile business compared to other segments?

Mobile has emerged as the undisputed growth engine, with total revenue now exceeding the combined revenue of the Fixed Consumer, Enterprise, Active Wholesale, and International segments. This dominance is supported by a 5G footprint that currently reaches 91% of the Australian population.

Is Telstra making progress in monetising its 5G network?

The company is seeing steady linear growth in fixed wireless, which has now surpassed the 100,000 milestone to reach 105,000 SIOs. This growth is a key component of the strategy to justify ongoing 5G investments and reach the 95% population coverage target by June 2025.

What is the outlook for the consumer broadband business?

The Fixed Consumer segment continues to struggle, as the pace of SIO losses is currently faster than ARPU increases can offset. This trend persists despite the broader recovery in group profit margins and stable revenue trends in other segments.

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No surprises in Telstra’s improved 1H25 results

Telstra's 1H25 results show margin recovery through aggressive cost-cutting, with mobile revenue now exceeding all fixed segments.

David Kennedy · Venture Insights20 February 2025Period: 1H254 min read

$1.6 billion→

Telstra capital expenditure for the 1H25 half-year period

105k↑

Fixed wireless SIOs after breaking through the 100k milestone

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Abstract

Telstra’s 1H25 results were close to guidance. We see broadly stable trends in segment revenues, and a profitability boost from heavy cost cutting in response to last year’s slump. This has led to a recovery in profit margins which allows Telstra to justify ongoing network capex.

Key Takeaways

Telstra's 1H25 results aligned closely with previous guidance, showing stable revenue trends and a recovery in profit margins.
Mobile remains the primary growth engine, with revenue now exceeding the combined total of Fixed Consumer, Enterprise, Active Wholesale, and International.
Aggressive cost-cutting measures successfully lifted profits out of the 2H24 slump, matching or exceeding 2H23 peaks.

What's Inside

Medium term trends play out in segment revenue growth

Cost cutting drives lift in profitability

Findings

2 figures& data tables inside

Charts, tables, and data visualisations

Abstract

Key Takeaways

What's Inside

Medium term trends play out in segment revenue growth

Cost cutting drives lift in profitability

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