Telstra has reported a 12.9 per cent rise in full-year net profit to $3.9 billion, with revenue up two per cent to $26 billion.
Shares in the telco jumped nine cents to $5.095 in early trade and held their position till close.
Telstra also said it expects revenue and earnings to continue to grow in the low single-digit range for 2013/14.
The telco’s profit result was slightly ahead of analysts’ expectations.
Telstra added 1.3 million mobile customers during the 12 months to June, taking its total subscriber base to 15.1 million.
Revenue for the key mobile division rose six per cent to $9.2 billion.
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Telstra chief executive officer David Thodey said it was the third consecutive year of significant customer growth for Telstra mobile, driven by $1.2 billion of investment in the network during the year.
Fixed line customers continued their rapid decline, with 287,000 customers, or 3.6 per cent, disconnecting during the year and fixed line revenue sagging 9.5 per cent.
Telstra’s earnings before interest, tax, depreciation and amortisation (EBITDA) rose by 3.9 per cent to $10.6 billion and earnings per share was up 11.6 per cent to 30.7 cents.
Thodey said the result was an endorsement of Telstra’s strategic direction.
“Our strategy around improving customer service, as well as focusing on our growth businesses is working,” he said.
“I am pleased that we have once again delivered on our commitments and met our guidance, at the same time as continuing to simplify our business.”
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Telstra’s total domestic retail mobile customers increased to 15.1 million and mobile revenue rose by six per cent to $9.2 billion.
“We know our customers value extensive coverage, fewer drop outs on calls and reliable mobile data speeds and we invested $1.2 billion in our mobile network during the year to deliver on this,” Thodey said.
“This investment includes expanding the reach of our 4G network which now covers 66 per cent of the population and is on target to reach 85 per cent by the end of the year.”
Telstra chief financial officer Andrew Penn told AAP the telco expected to add more mobile services even as numbers of actual customers available to sign up slowed down.
“As time goes forward, there are limits to the numbers of individuals that use mobiles but what we are also seeing is individuals using multiple devices,” Mr Penn said.
“In terms of the numbers of services in operation, I think there is continued growth.”
Revenue from Telstra’s Network Applications and Services (NAS) portfolio increased by 17.7 per cent for the year and included the commencement of a $1.1 billion six year contract with the Department of Defence as well as international agreements with Jetstar and Fitness First. Thodey said the NAS startegy included expansion into Asia.
“Part of the NAS growth strategy is to expand into international markets, particularly in the Asian region and as we announced in July, there are discussions underway regarding the establishment of delivery centres in conjunction with industry partners located in India.
“This is important for us as we leverage our Asian network assets to deliver NAS service offerings in that region.”
The Sensis directories business, which includes the Yellow Pages and White Pages telephone directories, suffered an 11.4 per cent fall in revenue.
– with AAP
