Telstra increases dividend despite profit dip

Telstra will pay shareholders its highest dividend since 2015 despite a slight fall in net profit and income for the full financial year.

Revenue fell 4.7 per cent from $23.1 billion to $22 billion despite growth in the mobile services division, while earnings before interest, tax, depreciation and amortisation was $7.3 billion, a fall of 5 per cent. Net profit for the year was $1.8 billion, down 4.6 per cent.

The results are the last for outgoing CEO Andy Penn.Credit:AFR

The results are the final under outgoing chief executive Andy Penn, who will be replaced by his chief financial officer Vicki Brady.

“When we launched our T22 strategy four years ago, we were in part responding to the operational and financial headwinds created by the rollout of the NBN. We were also responding to the technology innovation we could see around us and the growing rate of digital adoption,” Penn said.

“Telstra is a very different company today and while of course there is always more to do, we are much better equipped to face the very exciting digital future ahead.”

The company will pay a fully franked final dividend of 8.5 cents per share. The total dividend is 16.5 cents per share for the year, which marks the first time the telco giant has increased its payment to shareholders since 2015.

Telstra is forecasting total income of between $23 to $25 billion for FY23 and underlying EBITDA of $7.8 to $8 billion.

Shares closed at $4.01 on Wednesday.

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