Telstra’s profit for fiscal 2024 (the year to end-June) was weighed on by one-off restructuring costs and continued declines in its fixed enterprises business.

Net profit dropped 12.8 per cent to AUD1.8 billion ($1.2 billion) on revenue flat at AUD23.5 billion.

In its earnings release, CEO Vicki Brady explained while most parts of its business performed strongly, fixed enterprise “is clearly a long way from where we need it to be. We commenced action during the year to address challenges…and took additional action on cost overall”.

Fixed enterprise sales fell 5 per cent to AUD3.5 billion and EBITDA 67 per cent to AUD136 million. The unit booked an AUD311 million impairment charge.

The company recorded AUD715 million in total impairments, restructuring costs and other guidance adjustments.

Brady added with the changes it is confident in achieving an AUD350 million cost reduction target by the end of fiscal 2025.

She insisted its fiscal 2025 strategy is on track and is “optimistic about the opportunities ahead”.

Telstra earmarked AUD3.2 billion to AUD3.4 billion for full-year capex compared with AUD3.4 billion in fiscal 2024.

Mobile gains
Mobile service revenue increased 5.6 per cent to AUD8.2 billion, aided by subscriber and ARPU gains.

Prepaid subscribers rose 5.4 per cent to 3.8 million and post-paid 1.3 per cent to 8.9 million.

ARPU for prepaid was up 10 per cent to AUD27.14 and post-paid flat at AUD52.49.

Product sales remained at AUD2.4 billion.

The company said 5G population coverage reached 89 per cent, with 54 per cent of mobile traffic on the infrastructure.

InfraCo fixed revenue grew 7.4 per cent to AUD2.7 billion and international sales, covering wholesale and enterprise, 6.1 per cent to AUD2.6 billion.

Revenue was flat at Telstra Business and the networks, IT and products unit.