New Zealand Markets closed

Telstra profit grows to $3.4 billion


Telstra has increased its full year profit to $3.4 billion and forecasts further growth in the year ahead as it attracts new mobile phone and broadband customers.

Telstra's profit for the year to June 30 was up 5.4 per cent on the previous corresponding period, its first financial year of profit growth since 2008/09.

The telco said it had added 1.6 million mobile customers in the year to June, taking its total number of Australian mobile customers to 13.8 million.

Telstra posted earnings before interest, tax, depreciation and amortisation (EBITDA) of $10.23 billion, slightly lower than analyst expectations.

Revenue of $25.3 billion in the year to June was in line with expectations.

Telstra forecast low single-digit growth in both EBITDA and revenue for the 2012/13 financial year.

"We have seen two years of significant customer growth as our strategy continues to bear fruit," chief executive David Thodey said in a statement on Thursday.

"This has translated into strong financial results despite tough domestic and international economic conditions."

Telstra declared a final dividend of 14 cents per share, taking full year dividends to 28 cents, fully franked.

The company expects to pay dividends of 28 cents in the 2012/13 financial year.

"Our strategy is working and we continue to focus on our priorities of improving customer satisfaction, profitably increasing the number of customers, simplifying the business and finding new growth opportunities," Mr Thodey said.