3 Things You Need to Know About Telstra Group Ltd (ASX: TLS) Right Now

Telstra Group Ltd (ASX: TLS) remains one of Australia’s most recognizable and influential companies, serving as a cornerstone of the nation’s telecommunications and digital infrastructure. As technology continues to evolve and competition intensifies, Telstra’s ability to adapt and maintain leadership has kept it in the spotlight for investors.

In 2025, Telstra has delivered a mix of strong financial performance, shareholder returns, and some regulatory challenges that have stirred discussions across the market. Here are three crucial things you need to know about Telstra right now — and why the stock continues to command investor attention.

1. Strong Financial Turnaround and Record Profit

Telstra delivered a stellar performance in FY2025, marking one of its strongest years in recent times. The company reported a 34% rise in statutory net profit to $2.17 billion, driven by solid mobile earnings, growth in enterprise services, and disciplined cost management.

Earnings before interest, tax, depreciation, and amortization (EBITDA) climbed 10% year-over-year to $8.6 billion, reflecting the benefits of Telstra’s “T25” strategy, which emphasizes simplification, customer experience, and technology innovation.

Key financial highlights from FY2025 include:

1. Underlying net profit: $2.2 billion (up 2.6%)
2. Underlying earnings per share (EPS): 19.1 cents (up 3.2%)
3. Cash EPS: 22.4 cents (up 12%)
4. Operating revenue: $23.1 billion (up 4%)

This strong performance was underpinned by record growth in mobile services, which remain Telstra’s most profitable segment. Subscriber numbers continued to expand, especially in 5G plans, as the company capitalized on its extensive network coverage and brand strength.

Telstra also saw improved cost discipline, with operational expenses reduced through efficiency programs and automation. Combined with a healthy balance sheet, this financial turnaround demonstrates that Telstra’s transformation strategy is paying off.

With mobile ARPU (Average Revenue Per User) rising and data consumption continuing to surge, the company’s fundamentals look stronger than they have in years.

2. Shareholder-Friendly Dividend and Buyback Program

Telstra has long been a favorite among income-focused investors, and FY2025 reaffirmed why. The company increased its final dividend by 5.6% to 9.5 cents per share, taking the full-year dividend to 19 cents, fully franked. That’s up from 18 cents last year — a welcome sign of stability and growth in shareholder returns.

What’s even more encouraging is Telstra’s new $1 billion on-market share buyback program, announced in late 2025. This move highlights management’s confidence in the company’s long-term outlook and its commitment to enhancing shareholder value.

For investors, this means two things:

1. Stronger total return potential — thanks to a mix of dividends and buybacks.
2. Signal of confidence — buybacks often reflect management’s belief that the stock is undervalued.

Telstra’s dividend yield currently sits around 4.2%, competitive in the ASX landscape and attractive for investors seeking steady income in a volatile market.

Moreover, the buyback reduces the number of shares on issue, which can enhance earnings per share (EPS) growth over time. Combined, these capital management initiatives underscore Telstra’s position as one of the most shareholder-friendly blue-chip stocks on the ASX.

3. Regulatory Challenges and Competitive Landscape

While Telstra’s financial story is positive, it hasn’t been without bumps along the way. In October 2025, Telstra was fined $12 million by regulators for misleading customers about internet speeds on certain broadband plans. The fine served as a reminder of the company’s need to balance growth with compliance and transparency.

This incident comes amid rising competition in the Australian telecommunications space. Rivals like Optus, TPG Telecom, and emerging smaller players are vying for market share, particularly in 5G, broadband, and enterprise connectivity.

However, Telstra still retains a clear advantage in several areas:

1. Largest 5G network coverage in Australia, reaching over 85% of the population.
2. Continued investment in fiber infrastructure, improving service reliability.
3. Expansion into digital solutions, including cybersecurity, IoT (Internet of Things), and cloud-based enterprise services.

The company’s strategic shift toward digital transformation is paying dividends. Its technology division, Telstra Purple, continues to grow, offering consulting and IT solutions to business clients — an increasingly vital revenue stream as traditional telecommunication margins tighten.

Looking ahead, Telstra plans to invest $1.6 billion in network upgrades over the next two years to strengthen its position in both consumer and enterprise markets. These investments are designed to future-proof its network and capture opportunities from Australia’s ongoing digital infrastructure expansion.

Despite regulatory noise, Telstra’s strong operational execution and technological leadership position it well to navigate these challenges.

The Bigger Picture: Why Telstra Still Matters in 2025

Telstra remains a pillar of Australia’s telecommunications industry and an essential stock in many long-term portfolios. The company’s combination of earnings growth, consistent dividends, and infrastructure dominance makes it a compelling choice for both income and growth investors.

While short-term headwinds such as regulatory oversight and sector competition persist, Telstra’s fundamentals — including strong cash generation, disciplined cost control, and strategic investments — suggest the company is well-positioned for sustainable growth.

Moreover, with Australia’s digital economy expanding rapidly, Telstra’s ongoing investments in 5G, cloud services, and data networks give it a strong competitive edge for the future.

Final Thoughts

Telstra Group Ltd (ASX: TLS) has entered FY2025 with renewed momentum. The combination of record profits, rising dividends, a billion-dollar buyback, and ongoing innovation paints a bright picture for shareholders.

While challenges remain, particularly on the regulatory front, Telstra’s leadership in mobile connectivity, network infrastructure, and digital transformation ensures it remains a cornerstone of the ASX.

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