Telstra H1 Results Down, Declares Dividend; Sees Growth In Underlying EBITDA; Stock Up

(RTTNews) - Australian telecom giant Telstra Corp. Ltd. (TLSYY.PK, TLS.AX, TLS) reported that its first-half profit attributable to equity holders declined 3.6 percent to A$1.10 billion from last year's A$1.14 billion.

Earnings per share were 9.2 cents, down 4.2 percent from 9.6 cents last year.

Total income declined 10.4 percent to A$12.02 billion, and EBITDA fell 14.7 percent to A$4.07 billion. First half Underlying EBITDA was A$3.3 billion.

Revenue, excluding finance income, from ordinary activities was A$10.98 billion, down A$12.16 billion last year.

Further, the Directors resolved to pay an interim dividend for the financial year 2021 of 8 cents per ordinary share, comprising an interim ordinary dividend of 5 cents and an interim special dividend of 3 cents.

The record date for the interim dividend will be February 25, with payment being made on March 26.

Looking ahead, the company projects second-half underlying EBITDA of A$3.3 billion to A$3.6 billion, with ambition for mid-to-high single digit percentage growth in fiscal 2022.

Further, Telstra has issued revised financial guidance for fiscal 2021. The range for total income was adjusted to A$22.6 billion - A$23.2 billion from A$23.2 billion - A$25.1 billion, a A$1.2 billion reduction at the mid-point from prior guidance. The large majority of the change was due to low-margin hardware and other equipment sales.

For the year, outlook for Underlying EBITDA was narrowed to $6.6 billion to $6.9 billion from $6.5 billion to $7 billion.

In Australia, Telstra shares were trading at A$3.27, up 3.15 percent.