Telstra Reaches 6-Month Peak on Positive 2025 Outlook

Telstra's stock has surged to a six-month high after the company released a favorable forecast for 2025. This optimistic outlook has increased investor confidence and driven positive market performance. The strong projection for the coming years has positioned Telstra as a key player in the market, reflecting the company's potential for growth and stability.

On August 15, Reuters reported that Telstra (TLS.AX), a leading Australian telecommunications company, increased its earnings forecast for fiscal 2025. This optimistic update led investors to overlook a 13% drop in annual profit, causing Telstra’s shares to reach a six-month high. The company raised its EBITDA guidance for 2025 to A$8.5 billion-A$8.7 billion, up from the previous range.

This adjustment follows a recent decision to raise rates on most mobile plans, effective August 27 for postpaid users and October 22 for prepaid users. UBS noted that the revised guidance supports a higher dividend payout of 19 cents per share for fiscal 2025, up from last year.

Despite the profit decline, which fell to A$1.78 billion from A$2.05 billion due to increased costs and a workforce reduction, Telstra's shares surged 3% to A$3.985. This was achieved despite the challenges of higher inflation and costs. The company’s mobile business saw a 9.2% earnings increase and added 560,000 new customers, lifting its underlying EBITDA by 3.7% to A$8.2 billion and declaring a final dividend of 9 cents per share.

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Source: Reuters‍