Telstra mobile FY24 - up in consumer, down in enterprise

Telstra successfully lifts mobile prices and SIOs, but faces softening ARPU in the enterprise segment during H2 FY24.

David Kennedy · Venture Insights23 August 2024Period: FY244 min read

$10,722m↑

Total Telstra Mobile Revenue (FY24)

9.2%↑

Increase in Underlying Mobile EBITDA (FY24)

Locked

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Abstract

This report analyses Telstra’s FY24 mobile results, highlighting a 4.5% increase in mobile revenue to $10,722 million and a 9.2% rise in underlying mobile EBITDA to $5,026 million. While retail mobile SIOs grew by 1.687 million to reach 24.2 million, the second half of the year showed signs of softening in the enterprise segment. The analysis explores how price increases have successfully driven profitability despite long-term real price declines in the Australian telecommunications sector.

Key Takeaways

Telstra's mobile revenue grew 4.5% to $10.7 billion in FY24, contributing significantly to a 9.2% rise in underlying mobile EBITDA.
Retail mobile SIOs saw a substantial increase of 1.687 million, bringing the total base to 24.2 million users.
Postpaid ARPU increased 3.3% to $52.85, though performance softened in the second half due to enterprise segment pressures.

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Frequently Asked Questions

Profitability is significantly outstripping top-line growth, with underlying mobile EBITDA rising 9.2% to $5,026 million against a 4.5% revenue increase. Telstra is currently the only major Australian operator successfully covering its cost of capital following strategic price adjustments.

Price increases have not deterred volume growth, as retail mobile SIOs expanded by 1.687 million to reach a total base of 24.2 million. Postpaid ARPU rose 3.3% to $52.85, while prepaid ARPU grew 3.8% to $27.02, demonstrating successful value capture across both segments.

The enterprise segment showed clear signs of softening in the second half of FY24 despite the overall revenue growth to $10.7 billion. While the consumer side remains robust, this enterprise slowdown suggests a shift in corporate spending or increased competitive pressure in the high-value business market.

The wholesale division is a high-growth engine, with revenue surging 24.6% to $440 million in FY24. The segment added 322,000 unique users, bringing its total base to 2.4 million and highlighting Telstra's dominance in providing infrastructure for secondary brands.

Telstra mobile FY24 - up in consumer, down in enterprise

Abstract

Key Takeaways

Frequently Asked Questions

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