Telstra has revealed a significant rise in domestic retail mobile customer services – adding almost 1 million new users in 2014 – bringing its total number of Australian accounts to 16 million.
Telstra also announced plans to buy-back up to $1 billion in shares, after successful FY2014 operations saw growth in total income, earnings per share, EBITDA and customer numbers.
Telstra chief executive David Thodey said the increase in shareholder returns was made possible by ongoing strong operational performance, three consecutive years of earnings growth and increased cash flows from recent divestments.
The telecommunications company reported a 6.1 per cent increase in total income to $26.3 billion, while earnings per share rose 14.3 per cent to 34.4 cents per share and EBITDA increased 9.5 per cent to $11.1 billion.
Net profit after tax increased 14.6 per cent or $554 million to $4.3 billion, while free cashflow rose 48.9 per cent or $2,459 million to $7.5 billion.
“Telstra’s level of free cashflow exceeds what we need in the short to medium term so the return of surplus capital to shareholders is considered appropriate in the current environment,” Thodey said.
Income and EBITDA guidance for 2015 is broadly flat, based on the assumption that wholesale product price maintains stability and there are no significant impairments to investment.
Earlier this week, Telstra acquired Ooyala – a cross-device video streaming and analytics platform – for $US270 million.
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