Telstra flags $750m share buy back as profit | Australian Markets

Telecommunications giant Telstra has unveiled a $750 million share buyback on the back of a stronger half-year revenue and healthy money stream.

The on-market buyback is anticipated to start out on March 12, 13 days after the shareholder recording date for a 9.5¢ interim dividend.

Telstra chief financial officer Michael Ackland stated the group was having fun with the financial advantages of a cost-cutting program and price rises throughout its companies within the December half.

Mr Ackland stated the funds had additionally benefited from the $128m sale of its 35 per cent financial stake in Foxtel to DAZN in December and the $137m exit from its majority stake enterprise capital group Titanium.

“Our balance sheet is strong and we remain committed to an A-band credit rating,” Mr Ackland instructed an investor briefing on Thursday morning. “We have made a decision on the buyback because it is consistent with our capital management.”

Telstra posted a 54 per cent rise in free money stream to $1.29 billion within the December half as web revenue nudged 6.5 per cent larger to $1.03b. Income was 1.5 per cent up at $11.6b and working bills have been down 1.8 per cent $7.56b.

Chief government Vicki Brady stated the largest driver of the stronger financial efficiency was the slashing of up to 2800 jobs as half of a cost-cutting program unveiled in Might final 12 months.

“The cash generation of the business is good,” Ms Brady stated.

The share buyback was according to Telstra’s capital management framework and demonstrated the board’s confidence within the group’s financial energy, she stated.

She stated there was a large shift within the need for employee expertise and functionality with the elevated significance of digital infrastructure to help artificial intelligence.