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Telstra (ASX:TLS) - CEO, Andrew Penn
CEO, Andrew Penn
Source: Testra.
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  • Telstra Corporation (TLS) is releasing its 2021 financial year results, as well as the details for a planned $1.35 billion share buyback
  • The telco giant announced a final dividend of 8 cents per share and a net profit after tax of $1.9 billion, a 3.4 per cent increase
  • TLS’s reported earnings dropped by 14.2 per cent to total $7.6 billion, while total income dropped by 11.6 per cent to $23.1 billion
  • The company also plans to return 50 per cent of net proceeds from its InfraCo Towers transaction to shareholders via an on-market share buyback
  • Telstra shares are up 3.00 per cent at $3.95 at 11:00 am

Telstra Corporation (TLS) is releasing its 2021 financial year results, as well as the details for a planned $1.35 billion share buyback.

FY21 results

The telco giant announced its FY21 results on Thursday morning, revealing a final dividend of 8 cents per share to take its total dividend for the year to 16 cents.

The company ended June 30 with a net profit after tax of $1.9 billion, a 3.4 per cent increase on last year’s NPAT of $1.83 billion.

TLS’s reported earnings before interest, taxes, depreciation and amortization dropped by 14.2 per cent over FY21 to total $7.6 billion.

Additionally, the telecommunications business said its total income for the year dropped by 11.6 per cent to $23.1 billion.

Telstra CEO Andy Penn said the results represented a turning point for the business as it continued to recover from the ongoing impact of COVID-19.

“2021 was a really significant year for Telstra. We delivered results in line with guidance and we are seeing the focus and discipline on T22 pay off,” Mr Penn said.

“It represents a turning point in our financial trajectory. Our second half underlying EBITDA was up on the first half. FY21 NPAT and EPS were up 3.4 per cent and 2 per cent respectively.”

“We are clearly building financial momentum and I am very pleased to be able to say that our underlying business will return to full-year growth in FY22.”

Telstra has set a forecast underlying EBITDA of between $7 billion to $7.3 billion in FY22 as well as total income of up to $23.6 billion.

Buyback

The telco also announced on Thursday it would carry out a $1.35 billion share buyback over the coming year.

TLS said it planned to return around 50 per cent of net proceeds from its InfraCo Towers transaction to shareholders via an on market share buyback.

A consortium of super funds announced in June it planned to acquire a 49 per cent interest in the leading mobile tower infrastructure provider.

The proceeds from the sale were expected to be $2.8 billion, with the deal expected to close in the coming months.

Telstra hasn’t announced the exact amount and timing of the buy-back, stating it would depend on market conditions, but the buyback was set to be completed within FY22.

Telstra shares were up 3.00 per cent at $3.95 at 11:00 am.

TLS by the numbers
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