Telstra, Australia's largest phone company, reported first-half earnings of almost $1.5 billion, a touch below analyst expectations, as a jump in mobile subscribers was countered by a fall in sales at its Yellow Pages Sensis business.
Telstra added almost one million new mobile services in the six months ending December 31, which helped contribute to a 22.5 per cent increase in net profit of $1.48 billion, up from $1.2 billion the previous year.
While fixed-line telephone revenue extended its decline of 9 per cent, domestic mobile revenue increased almost 11 per cent.
Total revenue for the half was $12.4 billion, up 1.1 per cent on the same time last year, missing analysts' estimates of 1.3 per cent growth. Still, chief executive David Thodey said it was "one of the best years for customer growth".
However revenue from the struggling Sensis business was down 24 per cent to $528 million because of unspecified problems implementing a new digital strategy and fewer businesses taking out advertisements in the Yellow Pages.
Management confirmed guidance of low single-digit growth for the full financial year and a 14 cent dividend for the half.
There was no mention of a potential share buy back from the deal with NBN Co because Telstra is still waiting for a key regulatory document to be approved - the so-called "structural separation undertaking".
Analyst and media briefings will be held this morning.
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