By Stuart Condie


SYDNEY--Telstra raised its dividend after first-half earnings improved by 3.8%, helped by a large increase in the number of users on its mobile network across a period that included a large-scale outage at one of its rivals.

Australia's largest communications provider on Thursday reported earnings before interest, tax, depreciation and amortization for the six months through December of 4.00 billion Australian dollars (US$2.58 billion), compared with A$3.86 billion a year ago.

The average analyst forecast had been A$4.04 billion, according to data compiled by FactSet.

On an underlying basis, Telstra reported Ebitda of A$4.0 billion. It said it expects underlying Ebitda of between A$8.2 billion and A$8.3 billion for the whole of fiscal 2024, lowering the top end of its previously issued guidance range from A$8.4 billion.

The change was made due to the performance of Telstra's network applications and services, or NAS, which sits within its enterprise unit. Telstra said that it had started a detailed review of its domestic enterprise business, with what it called a clear set of immediate and significant actions to address both cost and revenue.

"NAS is clearly a long way from where we need it to be," Chief Executive Vicki Brady said.

Statutory net profit rose by 11% to A$964 million as revenue rose by 1.2% to A$11.72 billion. The board raised its final dividend to 9.0 Australian cents per share, from 8.5 Australian cents.

Mobile income rose by 3.8% to A$5.325 billion. Telstra had 23.4 million retail mobile services on its network at the end of December, adding 933,000 new services across a period that featured an hourslong network outage at rival Optus.

Telstra added 848,000 mobile services in first half of its previous fiscal year, when numbers were boosted by the return of international tourists and students.

Analysts have suggested that the Nov. 8 outage--which followed a software upgrade by Optus parent Singapore Telecommunications--could boost perception of Telstra as a reliable network operator and help it win market share.

Telstra still anticipates total income of between A$22.8 billion and A$24.8 billion for the full fiscal year, compared with A$23.25 billion in fiscal 2023. Capital expenditure is expected toward the top end of its A$3.6 billion-A$3.7 billion guidance range, also in line with previous guidance.


Write to Stuart Condie at stuart.condie@wsj.com


(END) Dow Jones Newswires

02-14-24 1617ET