Site menu

Search by ticker code:
Generic filters

Menu

Search by ticker code:
Generic filters

Search by ticker code:
Generic filters

Telstra (ASX:TLS) share price rises after FY24 AGM update

The Telstra Group Ltd (ASX: TLS) share price has risen after the telco delivered an interesting update at its AGM.

The Telstra Group Ltd (ASX: TLS) share price has risen after the telco delivered an interesting update at its AGM.

Telstra was holding its annual shareholder meeting to conduct votes and tell investors how things are looking.

FY24 update

The main thing for investors to know is that Telstra confirmed that its T25 strategy is on track, including its growth ambitions for both underlying (EBITDA) and profit / earnings per share (EPS).

Underlying EBITDA guidance is consistent with its T25 ambition for a mid-single-digit compound annual growth rate (CAGR) between FY21 to FY25. In other words, it’s expecting a growth rate of roughly 5% each year between FY21 to FY25.

In dollar terms, the underlying EBITDA is expected to come between $8.2 billion to $8.4 billion, up between 2.5% to 5% in FY24. While that’s not huge growth, it’s another step in the right direction, which should be useful for the Telstra share price.

Free cashflow after lease payments, including strategic investments, is forecast by Telstra to be between $2.8 billion to $3.2 billion.

The company said that not only is it suffering from inflation, but it’s seeing traffic on its mobile network is growing at around 30% each year, while “CPI data shows that telecommunications pricing has reduced in real terms in recent years.” Its cost reduction goal is being challenged by high inflation.

Telstra has decided to hold on its InfraCo Fixed division because it plays an important role, particularly in an inflationary environment.

Overall, the business is still focused on delivering long-term, sustainable growth, and the objectives and principles of the capital management framework, which includes growing the dividend.

Maxine Brenner gets through

According to reporting by the Australian Financial Review, new Telstra director Maxine Brenner’s appointment was not backed by 17% of the vote. She is stepping down from the Qantas Airways Limited (ASX: QAN) board following the intense scrutiny the airline has come under following a number of negative events, including ACCC action. Some shareholders were questioning whether she would be the right choice for the Telstra board.

Final thoughts on the Telstra share price

Since mid-August, Telstra shares have fallen around 10%. I think it’s better value today and the fact that dividends and profit keep growing is a positive.

I think it’s a good large cap to own, though there are other ASX dividend shares

$50,000 per year in passive income from shares? Yes, please!

With interest rates UP, now could be one of the best times to start earning passive income from a portfolio. Imagine earning 4%, 5% — or more — in dividend passive income from the best shares, LICs, or ETFs… it’s like magic.

So how do the best investors do it?

Chief Investment Officer Owen Rask has just released his brand new passive income report. Owen has outlined 10 of his favourite ETFs and shares to watch, his rules for passive income investing, why he would buy ETFs before LICs and more.

You can INSTANTLY access Owen’s report for FREE by CLICKING HERE NOW and creating a 100% FREE Rask Account.

(Psst. By creating a free Rask account, you’ll also get access to 15+ online courses, 1,000+ podcasts, invites to events, a weekly value investing newsletter and more!)

Unsubscribe anytime. Read our TermsFinancial Services GuidePrivacy Policy. We’ll never sell your email address. Our company is Australian owned.

Information warning: The information on this website is published by The Rask Group Pty Ltd (ABN: 36 622 810 995) is limited to factual information or (at most) general financial advice only. That means, the information and advice does not take into account your objectives, financial situation or needs. It is not specific to you, your needs, goals or objectives. Because of that, you should consider if the advice is appropriate to you and your needs, before acting on the information. If you don’t know what your needs are, you should consult a trusted and licensed financial adviser who can provide you with personal financial product advice. In addition, you should obtain and read the product disclosure statement (PDS) before making a decision to acquire a financial product. Please read our Terms and Conditions and Financial Services Guide before using this website. The Rask Group Pty Ltd is a Corporate Authorised Representative (#1280930) of AFSL #383169.

At the time of publishing, Jaz does not have a financial or commercial interest in any of the companies mentioned.
Skip to content