Telstra records 22 per cent profit growth

TELSTRA and its shareholders are having a great day. They’ve just announced strong growth and they’re feeling generous.

TELSTRA has reaffirmed its full year earnings guidance after lifting its first half profit 22 per cent to more than $2 billion.

The telco made a net profit of $2.08 billion for the six months to December 31, up from $1.70 billion a year ago.

It reaffirmed its full year guidance for single digit earnings growth, excluding the impact of the sale of its stake it Hong Kong mobile business CSL in 2014.

The company also lifted its interim dividend half a cent to 15 cents, which equates to a $1.8 billion return to shareholders. It also reactivated its dividend reinvestment plan.

Chief executive David Thodey said the company made significant progress on its Asian growth plans during the half year, including its $US697 million ($A904.20 million) purchase of Pacnet, which owns the world’s largest submarine cable network.

“Once completed, this acquisition will increase the scale and capability of our fixed infrastructure, our network density and our reach across the Asia Pacific region, as well as our customer base and our capability,” he said.

Revenue from the company’s mobile business climbed 9.6 per cent to $5.3 billion during the half after adding 366,000 additional customers.

Originally published as Telstra records 22 per cent profit growth