What happened
Telstra reported a 2.7% increase in net profit to $2.4 billion for the financial year, even as revenue slipped 0.8% to $22.9 billion. Management rewarded shareholders by raising the full-year dividend by 10.5% and announcing an on-market share buyback worth up to $1 billion.
Why it matters here
Telstra's cash flow resilience enables strong capital returns to investors even in a flat revenue environment. For income-focused Australian portfolios and superannuation funds, the dividend boost and buyback underline the telecommunications leader's defensive quality amidst wider economic deceleration.
What to watch
The commencement date for Telstra's $1 billion on-market share buyback alongside mobile average revenue per user growth metrics in upcoming financial reporting periods.
Source
proactiveinvestors.com