Telstra hikes dividend, announces $750m share buy-back

Its revenue for the six months to December 31 was up 1.5 per cent to $11.6 billion, with earnings before interest, tax, depreciation and amortisation climbing six per cent to $4.2 billion.

"These are a strong set of results, delivering a fourth consecutive year of first-half underlying growth, reflecting momentum across our business, strong cost control and disciplined capital management," chief executive Vicki Brady said.

Telstra announced a 9.5 cent per share fully franked interim dividend, up 5.6 per cent from a year ago.

The company will begin buying back its shares on March 12.

It will also spend another $800 million over the next four years upgrading its mobile network in partnership with Ericsson, to optimise network management with "self-detection and self-healing properties".