Telstra grows profit as the business sets its sights on customer advocacy

Sarah Homewood
By Sarah Homewood | 18 February 2016

Telstra today revealed its results for the first half of the 2016 financial year, with the telco reporting it has grown its retail fixed bundle and mobile customer numbers and achieved income growth across all segments.

In an announcement to the ASX this morning, CEO Andrew Penn says the results reflect the importance of Telstra’s strategy of improving customer advocacy, continuing to drive value and growth from core businesses as well as supporting its growth plans.

Penn added that improving customer advocacy remains the “single most important driver of Telstra’s strategy”.

“Our results have been achieved against increased mobile competition and acceleration in the NBN multi-technology model roll-out. We have continued to innovate and develop products and services to meet changing customer preferences and expectations in our fixed and mobile businesses,” he says.

In the half year reporting period, Telstra added 235,000 domestic retail mobile services, growing that to 16.9 million, as well as adding 121,000 retail fixed broadband customers and 163,000 retail fixed bundle customers.

“We are actively working to simplify our business, drive down costs and help our customers experience what technology can do for their lives and businesses. As a result, our Net Promoter System result was three points higher than the first half of FY15,” Penn says.

Telstra reports that total income excluding finance income increased 9.1% to $14.2 billion, with its net profit after tax increasing 0.8% to $2.1 billion. Telstra directors also confirmed a fully franked interim dividend of 15.5 cents, up 3.3%, seeing $1.9 billion returned to shareholders.

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