Telstra reported profit growth in its fiscal H1 (ending 31 December 2024) on the back of cost-cutting moves, with the operator committing to raise its mobile network investment by AUD800 million ($510 million) over the next four years.

CEO Vicki Brady stated the company delivered a fourth consecutive year of H1 underlying growth and is on track to reach its T25 strategy goals, with its fiscal 2025 guidance remaining unchanged.

Full-year capex is forecast at AUD3.4 billion, the same level as last year or slightly lower.

In its earnings release, Telstra noted it will step up its 5G investment by directing a larger portion of the overall outlay to mobile assets.

Core fixed costs in the period were reduced by AUD161 million, or 4.8 per cent from a year earlier, with the company saying it is on target to cut AUD350 million across the whole year.

Net profit for the six-month period rose 7.1 per cent year-on-year to AUD1.1 billion, while total revenue was broadly flat at AUD11.8 billion.

Mobile service revenue grew 3.1 per cent to AUD4.2 billion, which the operator credited to “sustained ARPU growth” in prepaid, which was up 6.5 per cent to AUD28.15. Post-paid ARPU was steady at AUD53.62.

Its post-paid user base was flat at nearly 9 million; prepaid users fell 1.7 per cent to 3.7 million, due to the closure of its 3G network.

Its InfraCo unit booked a 2.2 per cent increase in sales to AUD2.1 billion, while Telstra International and its domestic enterprise business recorded declines of 4.8 per cent and 1.5 per cent to AUD1.3 billion and AUD2.2 billion, respectively.