Telstra Group, Australia’s predominant telecom firm, experienced a notable decline in its annual profit, primarily attributed to the underperforming enterprise and wholesale sectors despite growth in the mobile segment. The fixed enterprise division, which caters to delivering technological solutions to government and large businesses, faced challenges from intense competition and limited customer expenditures. Although the mobile business exhibited margin expansion due to increased prices for mobile and data plans along with customer acquisition, the struggles in the enterprise category overshadowed these gains.
The company reported a profit of A$1.62 billion, a significant drop from the previous year’s A$1.93 billion and below the estimate of A$2.00 billion. However, the underlying net profit after tax saw a 7.5% increase, totaling A$2.3 billion. Despite the decline in overall profit, Telstra announced a final dividend of 9 Australian cents per share, reflecting a modest increase from the prior year’s 8.5 cents. The contrasting performance in different segments highlights the shifting landscape of the telecom industry and the challenges faced by key players like Telstra in adapting to evolving market dynamics and customer demands.
