CFDs are a leveraged product and can result in losses that exceed deposits. Please ensure you fully understand how CFDs work and what their risks are, and take care to manage your exposure. CFDs are a leveraged product and can result in losses that exceed deposits. Please ensure you fully understand how CFDs work and what their risks are, and take care to manage your exposure.

Telstra share price: where next following H1 results?

The telco’s stock rose modestly at the open today, after reporting a set of first-half results that were in-line with expectations.

Telstra share price: a modest bounce

Telstra (ASX: TLS) – Australia’s leading blue-chip telco – today reported a dependable set of half-year results that were in-line with expectations. In step with that, the share price rose, if only by a touch, up 0.64% in the first 30-minutes of trade, to $3.85 per share.

The stock however fell as much as 1.83% a little after 10:40 (AEDT), after it was revealed that the TPG-Vodafone merger, which was previously blocked by the ACCC, would be going ahead afterall.

Unfolding news aside, on the top-line, Telstra reported total first-half income of $13.4 billion and earnings (NPAT) of $1.2 billion, representing decreases of 2.8% and 6.4%, respectively.

Mobile, making up a significant 44% of the telco’s revenue, grew by 0.3% in the half – to $5.3 billion.

Telstra now has a total of 18.5 million domestic retail customer services online.

Do you own Telstra shares? You can hedge your downside risk by trading CFDs now.

On the bottom-line, underlying earnings (EBITDA) declined 6.6%, coming in at $3.9 billion. When excluding in-year NBN headwinds however, the telco was keen to point out that these earnings 'grew by approximately $90 million, the first time this figure has grown since FY16.'

The company also continued to aggressively cut costs during the half, reducing fixed costs by $422 million – representing a 12.1% reduction. Total underlying fixed costs have now decreased by $1.6 billion since FY16. The company is targeting a $2.5 billion reduction in costs by FY22.

Finally, the Board announced a fully-franked interim dividend of 8 cents per share – made up of a 5 cent ordinary interim dividend and a 3 cent special dividend.

The 5G equation in focus

Telstra's CEO, Andrew Penn speaking of the telco’s focus on technological innovation, said:

'Telstra's ongoing research and investment continues to make Australia a global leader in 5G,' with it being further added that 'as the 5G ecosystem develops, we are seeing more devises becoming available to our customers.’

Looking at this from a product level, it was noted that Telstra launched the 5G enabled Samsung Galaxy A90 in November. Promisingly, it was added that:

‘One quarter of all our Android phone sales since July 2019 have been 5G devices. In total, we have sold more than 100,000 5G-enabled mobile devices and we look forward to that number continuing to grow.'

Interestingly, Apple is yet to release a 5G-enabled phone, though many have speculated that the next Apple iPhone will be underpinned by 5G technology.

Where next: things remain on track

Looking forward, Telstra (ASX: TLS) today took the chance to reaffirm FY20 guidance, with management expecting total full-year income in the range of $25.3 billion to $27.3 billion. On the bottom-line, FY20 earnings (underlying EBITDA) are expected to come in at between $7.4 billion to $7.9 billion.

Across Telstra’s three key financial metrics: Total Income, Underlying EBITDA and Free Cash Flow (FCF) – the telco remains on track to meet market guidance, it was noted.

At the $3.85 mark, the Telstra share price now trades ~19% higher than it did one year ago.

Practise trading Australian bank stocks with an IG demo account now

This information has been prepared by IG, a trading name of IG Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
CFDs are a leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your initial deposit, so please ensure that you fully understand the risks involved.

Act on share opportunities today

Go long or short on thousands of international stocks with CFDs.

  • Get full exposure for a comparatively small deposit
  • Trade on spreads from just 0.1%
  • Get greater order book visibility with direct market access

See opportunity on a stock?

Try a risk-free trade in your demo account, and see whether you’re on to something.

  • Log in to your demo
  • Try a risk-free trade
  • See whether your hunch pays off

See opportunity on a stock?

Don’t miss your chance – upgrade to a live account to take advantage.

  • Trade a huge range of popular stocks
  • Analyse and deal seamlessly on fast, intuitive charts
  • See and react to breaking news in-platform

See opportunity on a stock?

Don’t miss your chance. Log in to take advantage while conditions prevail.

Live prices on most popular markets

  • Forex
  • Shares
  • Indices

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

Plan your trading week

Get the week’s market-moving news sent directly to your inbox every Friday. The Week Ahead gives you a full calendar of upcoming economic events, as well as commentary from our expert analysts on the key markets to watch.

For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.