Telstra posted a weaker full year statutory profit of $4.231 billion, down 1%.
Analysts had been expecting a flat to slightly higher profit around $4.3 billion.
The result was on revenue down 0.9% to $26.607 billion.
In 2016, Telstra expects to deliver mid-single digit income growth.
This is the first annual results announcement for new CEO Andy Penn who took over from from David Thodey in May.
Penn says this is the first full financial year operating without the CSL Hong Kong mobile business, which was sold in May 2014.
“As a result, our reported income and profit numbers are impacted,” he says.
“However, excluding the profit from sale and operational impacts of CSL, our business continued to perform strongly.”
Telstra’s 2014 results included $561 million profit from the sale of CSL as well as $1.045 billion revenue from 10 months trading.
Excluding CSL, Telstra’s total income for 2015 was up 6.6%.
Telstra added 664,000 retail mobile customer services to 16.7 million and 189,000 retail fixed broadband customers over the year to the end of June.
Telstra has some big infrastructure work on its books including $5 billion over the next three years to extend 4G to 99% of the Australian populations, to cope with an explosion in video and to maintain its leadership position on mobile.
The company increased the final dividend by 15.5 cents to 30.5 cents, meaning a payout of $3.7 billion to shareholders.