Telstra is on track to meet its full year guidance after reporting a net profit increase of 0.8 per cent to $2.1 billion and EBITDA increase of 1.7 per cent to $5.4 billion for the first six months of FY16, ending December 31.
Total revenue increased 7.6 per cent to $13.6 billion.
The results also include the first full six month operating period with Pacnet, which was acquired in April 2015.
Telstra CEO, Andrew Penn, said the results reflected the importance of Telstra’s strategy of improving customer advocacy, continuing to drive value and growth from its core business and creating value for shareholders.
Penn highlighted that improving customer advocacy was the most important driver in the telco’s strategy that could only be achieved through customer service, technology, networks and delivery.
“Our results have been achieved against increased mobile competition and acceleration in the NBN multi-technology 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,” Penn said. “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.”
Telstra’s Network Applications and Services (NAS) business revenue increased 32.7 per cent to $1.3 billion thanks to a strong performance across all NAS offerings and the achievement of significant contractual growth in some major accounts. NAS has achieved more than 20 per cent revenue growth in the past five years.
Under the NBN Definitive Agreements, Telstra earned $636 million income. The telco was also awarded work as one of the network operations and maintenance services providers to the NBN, which will start in March.
The telco’s mobile revenue increased 3.7 per cent to $5.5 billion. It added 235,000 domestic retail mobile services, including 80,000 post-paid handheld customers to take its total mobile subscriber base to 16.9 million.
Telstra boasts more than 1200 additional sites have been upgraded to 4GX standard with more than 500,000 customers on its Telstra Air Wi-Fi network including 120,000 mobile customers.
Overall revenue from Telstra’s fixed business declined 1.5 per cent to $3.6 billion, while fixed data revenue grew 6.7 per cent to $1.3 billion and the decline of fixed voice revenue was contained to 7.6 per cent.
Penn said significant progress has been made in its international growth strategy, particularly in Asia with the Pacnet acquisition adding $247 million in income growth.
“We are tracking ahead of our targeted integration synergies and have successfully combined the teams of the two companies across branding, products, pricing and customer relationships,” he said.