Telstra Reports A$2.4B Annual Profit as CEO Pay Rises after Outage
Synopsis
Telstra reported a A$2.4 billion annual profit, raised CEO Vicki Brady’s remuneration and confirmed 1,200 job cuts as the telecom giant continues to recover from July’s nationwide outage.
Telstra has reported a A$2.4 billion net profit for the 2025–26 financial year, up 2.7% from a year earlier, as Australia's largest telecommunications company continued to benefit from strong mobile revenue and wholesale growth.
The results come just weeks after a nationwide outage disrupted services for millions of customers and blocked more than 600 triple-0 emergency calls.
Alongside the earnings, Telstra revealed CEO Vicki Brady's total remuneration increased 11% to A$6.8 million, despite a A$607,000 reduction in her bonus linked to the outage.
The company also confirmed it has reduced its workforce by 4% or about 1,200 jobs, while announcing higher prices for many mobile and internet plans.
Telstra said customer numbers have remained stable following the outage and reaffirmed its commitment to investing in network reliability and future infrastructure.
Profit Grows as Mobile Business Remains Telstra's Biggest Driver
Telstra's mobile division remained the company's largest revenue source, contributing about 44% of total income. Revenue from the segment rose 3.2% to A$11.37 billion, supported by price increases introduced last year and continued demand for mobile services.
Overall mobile service revenue climbed 4.8%, while more than 274,000 Australians joined the Telstra network over the past year, largely through its wholesale business. The company also built more than 150 new mobile towers and upgraded nearly 1,200 sites to 5G as it expanded network coverage.
To support future investment, Telstra announced a 10.5% increase in its dividend and a A$1 billion share buyback, signalling confidence in its financial position despite broader economic pressures.
Outage Continues to Cast a Shadow over Results
The July network outage remained a key focus of the earnings announcement. Vicki Brady again apologised to customers, acknowledging the company had fallen short after the disruption affected emergency services, transport networks and payment systems across Australia.
Brady said Telstra had identified the initial cause of the outage and was continuing an independent investigation to prevent similar incidents. She added that the company would be transparent about its findings and any corrective measures.
Although the outage reduced executive bonuses by a combined A$1.3 million, Brady said it had not triggered any significant change in customer behaviour or subscriber numbers.
AI Investments and Workforce Changes Shape Telstra's Future
Alongside network upgrades, Telstra highlighted growing opportunities in artificial intelligence infrastructure. The company has secured long-term agreements with Microsoft, Google and Amazon Web Services across its fibre and subsea cable assets, while its Aura network project is now more than halfway complete.
Brady also rejected speculation that Telstra was replacing Australian jobs with workers in India. While confirming the company operates teams in both India and the Philippines, she said workforce decisions are based on customer needs rather than a strategy of outsourcing roles overseas.
Source: news.com.au
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