Telstra 4G Juggernaut Continues

Written by Oonagh Reidy     13/02/2014 | 15:55 | Category: PHONES

Telco now has 4.1m 4G users

Telstra 4G Juggernaut ContinuesMobile, Network Application Services (NAS) drive Telstra revenues, as profits surge 10%. 

Telstra's total income for the first half 2014 increased 4.1 per cent to $12.8 billion, it said today. 

The blue telco added 739,000 new mobile customers during H1, and increased mobile services revenue by 7.3%. 

Net profit after tax jumped almost 10% to $1.7 billion. 

"We continued to invest in maintaining our network leadership, highlighted by our $650 million capital investments in mobiles infrastructure in the half," said Telstra CEO David Thodey. 

Telstra claims it has one of the fastest take-ups of 4G network, globally. 

"We now have 15.8 million domestic mobile customer services, including 4.1 million 4G mobile devices on our network, and we expect to see continued growth in this area."

The telco confirmed it was on track to meet its full year guidance and announced an increased interim dividend of 14.5 cents, distributing $1.8 billion to shareholders.

"Our customers remain our highest priority and our focus during the past six months has been to continue to improve the way we interact with them every day as well as provide them with access to the best networks in Australia," said Thodey.

Telstra is continuing to rebalance its portfolio to reflect the changing nature of the business, including driving its Media content business and  investments in emerging businesses.

NAS recorded record revenues, up 29% to $821m in H1. 

Thodey confirmed Telstra had commenced negotiations with the NBN Co and Government on potential changes to the current agreements, worth billions, resulting from the Government's intent to move to a multi-technology NBN rollout.

"We are committed to acting in the best interests of our shareholders, and are focused on maintaining the value of the current agreements, achieving certainty of outcome as soon as reasonably possible and minimising any additional regulatory risk," he said.

Telstra confirmed fiscal 2014 guidance of low single digit total income and EBITDA growth, with free cashflow between $4.6 billion and $5.1 billion.