Shares of Telstra Corporation Ltd (ASX: TLS) will be a focal point in the market today after the telecommunications giant revealed its half-year report to investors.

Here are some highlights from Telstra’s six-month period ended 31 December 2015.

  1. Revenue rose 7.6% to $13,681 million
  2. Profit increased 0.4% to $2,093 million
  3. A fully franked dividend of 15.5 cents per share was declared, up 3.3% on last year’s payment
  4. Total retail mobile subscribers increased to 16.9 million
  5. 2016 outlook remains unchanged

“Our results have been achieved against increased mobile competition and acceleration in the NBN multi-technology model roll out,” Telstra CEO, Andy Penn, said. “We are actively working to simplify our business, drive down costs and help our customers experience what technology can do for their lives and businesses.”

Mobile revenue increased 3.7% to $5.5 billion, while Telstra’s fixed business reported a 1.5% decline in revenue. Fixed data revenue grew 6.7%, while fixed voice fell 7.6%.

Looking ahead, Telstra expects to report mid-single digit revenue growth and low-single digit operating profit growth. Full-year free cash flow is forecast between $4.6 billion and $5.1 billion, while capital expenditure is tipped to be the equivalent of 15% of sales.

Foolish takeaway

Telstra’s results appear to be in-line with expectations. It was pleasing to see the dividend maintained, mobile subscriber growth continuing and growth areas tracking along nicely. However, investors should be mindful of ongoing erosion in profit margins within the Mobile, Data and IP businesses, which appear to be coming under pressure.

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Motley Fool writer/analyst Owen Raszkiewicz does not have a financial interest in any company mentioned. Owen welcomes -- and encourages -- your feedback on Google+, LinkedIn or you can follow him on Twitter @ASXinvest.

Unless otherwise noted, the author does not have a position in any stocks mentioned by the author in the comments below. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.