Telstra has lifted its dividend despite a small slide in its full year profit.
The telco made a net profit of $4.23 billion for the year to June 30, which is down one percent on a year ago, though the result was skewed by the sale of its CSL Mobile business in Hong Kong in 2013/14.
Underlying earnings were up two percent to $10.8 billion, in line with guidance.
The company has flagged a similar performance for the year ahead, saying it expects low-single digit growth in earnings before interest, tax and depreciation and mid-single digit income growth.
Telstra increased its final dividend half a cent to 15.5 cents per share, taking the total dividend for the year to 30.5 cents, fully franked.
Unlike a year ago when the telco announced a $1 billion share-buy-back, there was no additional windfall for shareholders, though chief executive Andy Penn did highlight the enthusiasm for that move.
"Our $1 billion share buyback was substantially oversubscribed, a sign of the strong market support for this as an efficient way of returning capital to shareholders, Mr. Penn said," he said.
Telstra's core retail operations added another 664,000 mobile customers and 189,0000 fixed broadband customers during the year.
The Telco recently announced it would lift capital expenditure on its mobile network by $500 million to $5 billion over three years in an effort to maintain its dominance in the mobile market.
The move follows an announcement from rival Optus that it would spend $1.7 billion on its network in the next year.
Source: CIO Australia
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