Earnings release
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General Enquiries : E: companysecretary@team.telstra.com Investor Relations : 1800 880 679 ; E: investor.relations@team.telstra.com 19 February 2026 Market Announcements Office Australian Securities Exchange 4th Floor, 20 Bridge Street SYDNEY NSW 2000 Office of the Company Secretary Level 41, 242 Exhibition Street MELBOURNE VIC 3000 AUSTRALIA ELECTRONIC LODGEMENT − Telstra Group Limited (ACN 650 620 303) – ASX: TLS Telstra delivers strong first‑half performance and progress against Connected Future 30 strategy In accordance with the Listing Rules, attached is a market release by Telstra Group Limited for release to the market. Release of announcement authorised by: The Telstra Group Limited Board
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1 Market Release Telstra delivers strong first‑half performance and progress against Connected Future 30 strategy Thursday 19 February 2026 Below statements attributable to Telstra CEO Vicki Brady The first half of FY26 was a strong period for Telstra. We delivered ong oing growth in earnings , reflecting momentum across our business, strong cost control and disciplined capital management. We grew underlying EBITDA across our Mobiles, Fixed C&SB, InfraCo Fixed and Amplitel business es . Importantly, o ur M obile s business has continued to perform well, with EBITDA growth of $93 million. Mobiles growth was driven by higher ARPU and more customers continuing to choose our network and the value it provides. Mobile services revenue grew by 5.6%. Across the business, we achieved 14% Cash EBIT growth. This percentage growth rate is higher than the rate we expect at full year , largely due to lower BAU capex in the first - half. Our full - year Cash EBIT guidance is equivalent to around 5 % to 10% annual growth. We delivered positive operating leverage of 3.1 percentage points, in line with our Connected Future 30 target . Given the low level of income growth in the period, we achieved operating leverage largely through strong cost discipline and efficiency gains . We reduced underlying operating expenses by $179 million or 2.4%, more than offsetting pressure from rising costs. On the back of cash earnings growth, the Board resolved to pay an interim dividend of 10.5 cents per share. The interim dividend is 90.5% franked, with a franked amount of 9.5 cents per share and an unfranked amount of 1 cent per share 7 . The interim dividend uplift, and the level of franking applied, is consistent with our Capital Management Framework, and our aim to deliver a sustainable and growing dividend . Our dividend is supported by strong cash earnings this half, and our Connected Future 30 ambition remains to deliver mid - single digit growth in cash earnings. Today, we are also announcing an increase in our current on - market share buy - back from up to $1 billion to up to $1.25 billion. This increase is supported by strong progress in completing $637 million of the buy - back in the half, earnings growth, and the strength of our balance sheet.
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Market Release The on - market share buy - back is expected to support earnings and dividend per share growth, and along with the increased interim dividend, reflects the Board and management’s confidence in our financial strength and outlook. Connected Future 30 highlights from the half We also made a positive start to our Connected Future 30 strategy, which will see us double down on connectivity, drive growth and play a critical role in enabling a prosperous digital future for Australia. Outlook and FY26 guidance Looking ahead, we are focussed on continuing to deliver value for our customers, communities and shareholders as we build momentum behind our Connected Future 30 strategy. This includes through our core business cash flow, active portfolio and investment management, and disciplined capital management. Now that w e’ve completed our first half, today we are tightening our FY26 underlying EBITDAaL guidance to between $8.2 billion and $8.4 billion . Our guidance on other measures is unchanged.
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Market Release < ends > 1 Underlying EBITDA after l eases (EBITDAaL) excludes guidance adjustments. Guidance adjustments include material one - offs, such as mergers and acquisitions, disposals, impairments, spectrum, restructuring costs and such other items as determined by the Board and m anagement. Refer to Half - year results and operations review - guida nce vs reported results reconciliation which details the adjustments made for the current and comparative period to reflect performance on the basis on which we provided guidance to the market for FY26 (set out in our ASX announcement titled “Financial results for the half - year ended 31 December 2025” lodged with the ASX on 19 February 2026) 2 Cash EBIT defined as u nderlying EBITDAaL less BAU capex and spectrum amortisation . Refer to Half - year results and operations review - guidance vs reported results reconciliation which details the adjustments made for the current and comparative period to refl ect performance on the basis on which we provided guidance to the market for FY2 6 (set out in our ASX announcement titled “Financial results for the half - year ended 31 December 2025” lodged with the ASX on 19 February 2026) 3 Underlying Net Profit After Tax (NPAT) excludes guidance adjustments (as defined above) . 4 Cash EPS defined as cash earnings (underlying EBITDA aL less BAU capex, spectrum amortisation, finance costs, tax and non - controlling interests ) per share. 5 ROIC calculated as Net Operating Profit After Tax (NOPAT) as a percentage of total capital. 6 Underlying ROIC calculated as Underlying NOPAT as a percentage of total capital, excluding guidance adjustments (as defined above) less tax. 7 Interim dividend growth of 10.5% on a cash basis, from 1H25 9.5 cents per share (fully franked) to 1H26 10.5 cents per share (90.5% franked). 8 This guidance excludes material one - offs, such as mergers and acquisitions, disposals, impairments, spectrum, restructuring costs and such other items as determined by the Board and management . 9 Underlying EBITDA aL as defined in footnote 1 . Depreciation of right - of - use assets (leases) was $600m in FY25. We expect leases to remain broadly the same in FY26. Underlying EBITDAaL guidance range tightened - previously $8.15b to $8.45b. 10 BAU capex is measured on an accrued basis and excludes spectrum, guidance adjustments, strategic investment, externally funde d capex and capitalised leases. 1 1 Cash EBIT as defined in footnote 2 . Spectrum amortisation was $321m in FY25. 1 2 Strategic investment capex is measured on an accrued basis and relates to the Aura (Intercity Fibre) Network and Viasat proje cts. Telstra media contact: Steve Carey +61 413 988 640 media@team.telstra.com Media reference number : 0 0 1 /202 6 Telstra investor contact: Nathan Burley +61 457 529 334 investor.relations@team.telstra.com