Telstra reported a bottom-line net profit of $1.1 billion for the half year ended December, for a 9.4 per cent improvement on the prior corresponding period.
Its underlying earnings excluding depreciation also rose, by around five per cent to $4.2 billion - which was just under market expectations - after a small rise in total income to $11.8 billion.
Chief executive Vicki Brady said the telco's first-half result was strong, building on disciplined cost control and capital management.
"Importantly, our mobiles business has continued to perform well," she said in a statement on Thursday.
Growth in the unit was driven by higher average revenue per user, as more customers continued to choose its network, Ms Brady added.
Mobile services account for the majority of Telstra's product income and generated a 3.6 per cent boost to $5.8 billion in the half.
The group's underlying operating expenses fell by 2.4 per cent to $179 million, more than offsetting rising costs.
Telstra is also increasing its current on-market share buyback to up to $1.25 billion, from $1 billion, after completing $637 million in the first half.
"The on-market share buyback is expected to support earnings and dividend per share growth, and along with the increased interim dividend, reflects the board and management's confidence in our financial strength and outlook," Ms Brady said.
Telstra has tightened its 2025/26 full-year underlying earnings guidance to between $8.2 billion and $8.4 billion, after delivering $8 billion in the previous financial year.
Telstra shareholders will get an interim dividend of 10.5 cents per share.
22°C