Telstra posts lift in FY profit

Nation's number one telco records solid growth in revenue, net profit; expects further earnings growth as 4G network is built out.

Telstra Corporation (TLS) expects to grow revenue and earnings further in the year ahead as it builds out its 4G mobile network, after unveiling a solid lift in net profit for fiscal 2013.

In the year to June 30, the nation's number one telecommunications company's net profit was $3.813 billion, a 12% increase on the previous year's $3.405 billion.

The net profit figure exceeded analysts' consensus profit expectation of $3.77 billion.

In the same period, revenue was $25.678 billion, a 1.2% jump on the $25.368 billion recorded in 2012.

Chief executive officer David Thodey said the group expects growth to continue in fiscal 2014, forecasting low single digit total income and earnings before interest, taxation, depreciation and amortisation (EBITDA) growth.

He said free cashflow was expected to be between $4.6 billion and $5.1 billion in fiscal 2014, after declining 3.3% in the year to June 30 at $5.024 billion.

Telstra will pay a fully-franked full-year dividend of 28 cents on September 20. The telco's date of record is August 23.

Mr Thodey said the group would return to its previous practice of considering dividends on a half yearly basis, as previously announced.

Further operation efficiency possible: Thodey

Mr Thodey said the guidance assumed wholesale product price stability, no impairments to investments, and excluded any proceeds on the sale of businesses, the cost of acquisitions and spectrum purchases.

"Our strategic focus remains on improving customer satisfaction, growing our customer base, simplifying the business and finding new growth opportunities," he said.

"We believe there remains further opportunity to improve operational efficiency while at the same time growing new business opportunities."

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