Telstra profit tops $1bn as job cuts widen
Synopsis
Telstra reported a half-year net profit of about A$1.2 billion, up from the previous year, as higher mobile prices and cost controls lifted earnings. The company increased its interim dividend and confirmed around 1,000 additional job cuts as part of its restructuring efforts. Revenue growth was driven by stronger mobile performance and higher customer spending, reflecting ongoing adjustments across Australia’s competitive telecom sector.
Telstra posted a half-year net profit of about A$1.2 billion, up from a year earlier, supported by mobile price increases and cost controls. The company raised its interim dividend and confirmed around 1,000 additional job cuts as part of restructuring. Mobile revenue and customer spending both increased.
Key Highlights
- Telstra’s half-year net profit rose to about A$1.2 billion, up year-on-year.
- Interim dividend lifted to 10.5 Australian cents per share; buyback expanded.
- Workforce cuts exceeded 1,000 roles in the half year, part of wider cuts.
- Mobile service revenue and ARPU increases underpinned earnings growth.
Telstra profit climbed above A$1 billion in the first half of the financial year, supported by higher mobile prices and lower operating costs, as the telecommunications provider continued workforce reductions across parts of its business.
The company reported net profit of A$1.2 billion for the six months to 31 December 2025, compared with about A$1.04 billion a year earlier. Total income rose to around A$11.8 billion, reflecting stronger mobile service revenue and ongoing cost controls.
Mobile Revenue Drives Earnings Results
Growth in mobile services was a key contributor to the improved earnings results. Telstra recorded an increase in average revenue per user (ARPU), a measure of revenue generated per customer, following price adjustments introduced in 2024. Customer numbers in mobile services also increased during the period.
The company maintained its focus on expanding and upgrading its 5G network infrastructure, which underpins mobile data services across Australia. Mobile remains Telstra’s largest earnings segment within the telecom sector, where operators have faced rising energy, network, and labour costs.
Telstra increased its interim dividend to 10.5 cents per share and expanded its on-market share buyback program to up to A$1.25 billion, up from A$1 billion previously announced.
Job Cuts Continue Under Restructuring Plan
Alongside stronger Telstra profit, the company confirmed more than 1,000 roles were cut during the half year, contributing to broader workforce reductions announced earlier. The job cuts are part of a multi-year restructuring aimed at simplifying operations and lowering expenses across enterprise and technology units.
Over the 2025 calendar year, total workforce reductions reached more than 2,300 roles. Telstra said changes are intended to align staffing with evolving business priorities.
Telecom Sector Context and Prior Financials
In the previous financial year, Telstra reported full-year net profit of A$2.1 billion, reflecting similar gains in mobile and infrastructure services. The latest half-year results indicate continued profitability despite restructuring measures.
Australia’s telecom sector remains competitive, with major providers adjusting pricing strategies to manage costs while investing in network capacity. Telstra’s latest earnings results show margin improvement even as the company reduces its workforce and returns capital to shareholders.
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Pooja Malik is a business journalist with over six years of experience covering startups, entrepreneurship, and emerging trends. She has previously worked with leading media platforms such as YourStory Media and BW BusinessWorld, where she reported on business, policy, and market developments. Currently, she serves as Editor at The Inspirepreneur Magazine, where she writes and edits stories across business, lifestyle, and travel, with a focus on clarity, accuracy, and reader relevance.
