Today’s results show how we’re delivering for our customers, shareholders and our employees. As the nation relies on digital connectivity more than ever, we’re well placed to deliver the infrastructure, technology and security needed for Australia’s aspiration to become a world leading digital economy.

We’ve built on the success of our FY21 results, recording a second consecutive half of underlying growth. We’re seeing strong performance from our business, and we’re making investments in our network and new businesses all while maintaining a strong focus on taking cost out of our operations.

Improving the experience for our customers

We’ve now transferred 100 licensee stores to the Telstra owned store network and we’re on track to have all consumer and small business calls answered in Australia by the end of this financial year.

We now have more than four million customers signed up to Telstra Plus – our loyalty program that gives members access to special offers on tech and even concert tickets.

And the Telecommunications Industry Ombudsman reported Telstra complaints in the last quarter of 2021 had fallen by half compared to the same quarter the year before.

Delivering for our shareholders

The Telstra Board has resolved to pay a fully franked interim dividend of 8 cents per share, comprising a 6 cent ordinary and 2 cent special dividend, that will return around $940 million to shareholders. Thanks for supporting us.

Here’s the numbers

On a reported basis, total income for the half decreased 9.4 per cent to $10.9 billion and EBITDA was $3.5 billion, down 14.8 per cent. NPAT decreased by 34 per cent to $0.7 billion, and earnings per share was down 35.9 per cent to 5.9 cents. Income was down due to declines in one off nbn receipts and one-off gains last year from the sale of our Velocity and South Brisbane exchange assets, as well as the sale and lease back of our Pitt St exchange.

Underlying EBITDA 1 increased 5.1 per cent to $3.5 billion, demonstrating the positive momentum in Telstra’s core business, with mobiles performance reinforcing our clear leadership in 5G.

Underlying earnings per share 2 was up 55 per cent to 6.2 cents. This growth represents a strong start against Telstra’s T25 ambition for underlying EPS target of high teens CAGR from FY21 to FY25.

Kicking off T25

We know our T25 plan for growth wasn’t supposed to start until July 1, but we’re getting ahead of the game. This month we announced two major telecommunications infrastructure projects – Viasat and the national fibre build – to support the nation’s digital economy and enable unprecedented levels of connectivity across Australia.

Telstra Energy received its final license approvals for Victoria In December. This adds to earlier licences in Queensland, New South Wales, and South Australia, and we’re now trialling the product with our first customers.

In November we announced our intent to form a new joint venture to bring together Quantium’s market-leading data science and AI capabilities with our customer, product and network data assets. This unique partnership is a key enabler for our T25 data and AI ambitions.

And Telstra Health reported a strong half and last month was selected to deliver 1800RESPECT for an initial five years at an estimated contract value of around $200 million.

Thank you

These results haven’t happened by themselves – they have happened because the hard work of every Telstra employee and the support of our shareholders.

Despite the many challenges over the past few years, we have built the capabilities we need to take advantage of the opportunities ahead, and Telstra today is a fundamentally differently business to what it was when we started T22.

Things you need to know

1. Underlying EBITDA excludes net one-off nbn DA receipts less nbn net C2C and guidance adjustments (guidance adjustments defined in footnote 3). FY20/21 underlying EBITDA also includes depreciation of mobile lease right-of-use assets.

2. Calculated as Profit After Tax after Minority Interests (PATMI) attributable to each share, excluding net one-off nbn receipts and guidance adjustments (guidance adjustments defined in footnote 3).

3. This guidance excludes material one-offs, such as mergers and acquisitions, disposals, impairments, spectrum, restructuring costs and such other items as determined by the Board and management. Refer to half year results and operations review – guidance vs reported results reconciliation which details the adjustments made for the current and comparative period to reflect performance on the basis on which we provided guidance to the market for FY22 (set out in our ASX announcement titled “Telstra Corporation Limited – Financial results for the half-year ended 31 December 2021” lodged with the ASX on 17 February 2022)​.