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Telstra heralds 'turning point' as it adds to ASX cash splash

Business

Telstra claims it has reached a turning point with a $1.9 billion net profit and a forecast of growth as it added to the shower of cash for Australian ASX investors with a $1.35 billion buyback.

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Chief executive Andrew Penn said the significance of 2021 was that it had performed in line with its guidance and its focus and discipline was starting to pay off.

“It represents a turning point in our trajectory,” he said citing the improvement in underlying earnings.

“We are clearly building financial momentum and I am very pleased to be able to say that our underlying business will return to full-year growth in in 2022.”

He said the company was into its third year of a four-year strategy known as T22 and it was on track to deliver 80 per cent of the metrics.

Shareholders will receive a fully-franked dividend of 8 cents a share made up of an ordinary dividend of 5 cents and a special dividend of 3 cents. The payout will bring the total sent to shareholders for the year of $1.9 billion.

It will also return 50 per cent of the sale price of InfraCo to investors through a $1.35 billion on-market buyback.

In June 49 per cent of InfraCo, which holds the mobile phone towers, was sold to a consortium made up of the Future Fund, Sunsuper and the Commonwealth Superannuation Corporation.

So far this year investors have benefitted from buybacks worth billions of dollars from major corporations.

 

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