Telstra Group (TLS) Investor Day 2025 summary

Strategic direction and future plans

• Launched the Connected Future 30 strategy to reinforce leadership in mobiles, digital infrastructure, and cost discipline, aiming to be Australia's top choice for connectivity by 2030.

• Strategy is structured around three layers: customer engagement, network as a product, and digital infrastructure, each with specific value creation targets for growth, efficiency, and market leadership.

• Plans to transform the connectivity platform so that most connectivity revenue is enabled by Network as a Product by FY30.

• Ambition is to be among the top 10 brands in Australia, leveraging network innovation, customer-centricity, and differentiated offerings.

• Four enablers—people & culture, technology leadership, sustainability, and financial discipline—underpin delivery of the strategy.

Financial guidance and capital management

• Targets mid-single digit CAGR in cash earnings and sustainable, growing dividends through FY 2030, with underlying ROIC of 10% by FY30, up from around 8% currently.

• FY25 guidance: underlying EBITDA $8.5b–$8.7b, BAU capex $3.2b–$3.4b, strategic investment $0.3b–$0.5b, and FCFaL $3.0b–$3.4b.

• Updated net debt to EBITDA comfort zone to 1.75–2.25x, reflecting improved cashflow quality.

• Ongoing share buyback program (up to $750 million, 78% completed) and preference for buybacks or fully franked dividends, with flexibility based on capital position.

• Focus on disciplined investment, cost efficiency, and portfolio management, including exploring divestment and partnership options for non-core assets.

Business developments and innovation

• Major investment in 5G Advanced, with AUD 800 million allocated over four years to enhance network reliability, capacity, and energy efficiency.

• Investing in advanced technologies such as satellite-to-mobile, 6G, and autonomous networks to enhance capacity, efficiency, and resilience.

• Launching satellite-to-mobile messaging and expanding intercity fiber routes, with the first Sydney-Canberra route going live in June and further routes planned.

• AI and automation are central to operational efficiency, customer experience, and network management, with a joint venture with Accenture accelerating the AI roadmap.

• Participation in the Aduna joint venture and GSMA CAMARA standards to monetize network attributes globally and enable API-driven engagement for enterprise customers.