Telstra to buy back $1 billion in shares following strong full-year results

Telstra chief executive David Thodey has announced the buy-back of $1 billion in shares after delivering a 14.6% increase in profit to $4.3 billion in its full-year results.

Telstra reported its total income increased 6.1% to $26.3 billion for the full year, with EBITDA (earnings before interest, taxes, depreciation, and amortisation) up 9.5% or $967 million to $11.1 billion.

The strong results were off the back of strong growth in mobile phone customers, with 937,000 new customers, taking its total user base to 16 million. Total mobile revenues increased 5.1% to $9.7 billion.

The carrier’s final dividend increased by 7.1% to 15 cents per share, bringing the total dividend for the 2014 financial year to 29.5 cents.

Partially funded by its strong results, along with recent asset sales, including its 70% stake in Sensis and 6% interest in Hong Kong-based carrier CSL New World, Telstra is set to conduct an off-market share buy-back worth $1 billion.

The telecommunications and cloud computing giant also appointed former Yum! Brands chief operating officer and Pizza Hut global president Peter Hearl to its board of directors. Hearl is also currently a non-executive director of food manufacturers Goodman Fielder and Treasury Wine Estates.