Own Telstra (ASX:TLS) shares? Here’s what you need to know about next month’s earnings report

Telstra has just given investors an update…

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If you’re a shareholder of Telstra Corporation Ltd (ASX: TLS), well, firstly, congratulations. Telstra shares have been one of the best performing ASX blue-chips over the past 12 months, giving investors a healthy gain of 36.73% at the latest pricing. That includes the healthy 1.1% bump so far today to $4.22 a share. That’s just a whisker off this telco’s 52-week high of $4.23.

But investors might now be turning their heads to Telstra’s next earnings report. This, the company is scheduled to deliver next month on 17 February. Perhaps Telstra’s much-loved annual dividend of 16 cents per share, fully franked, will be increased, as shareholders have long been hoping for. Although, as my Fool colleague Tristan went through earlier this week, many experts are tipping this as unlikely in FY22.

Well, to gear us all up for Telstra’s big day next month, the company put out an ASX release this morning that gives us some details.

Telstra share price rises amid reporting framework shake up

So Telstra reiterated that it is changing its “product reporting framework” for next month. It will be giving investors “more transparency across our infrastructure business with InfraCo Fixed and Amplitel (InfraCo Towers) on a standalone basis”. It will also include “mobile and fixed product EBITDA margins after including intercompany infrastructure costs”.

In addition, Telstra will be providing these metrics on a backdated basis for the 2020 and 2021 financial years. This has been done in order to “assist the market when reviewing Telstra’s 2022 half-year results”.

It’s reporting framework will now include these underlying categories:

  • Fixed – Consumer & Small business
  • Mobile
  • Fixed – Enterprise
  • Fixed – Active wholesale
  • International
  • InfraCo Fixed
  • Amplitel
  • Other

Telstra was also at pains to state that “we remain committed to all financial ambitions under our previous reporting framework”. Additionally, the company also reassured investors that this new framework aligns with the T25 cost-cutting strategy.

Arguably, investors have approved of what the company had to say today (or are at least ambivalent), given the moves from Telstra shares we have seen so far.

At the current Telstra share price, this ASX 200 telco has a market capitalisation of $49.5 billion, with a trailing dividend yield of 3.8%.

 

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Motley Fool contributor Sebastian Bowen owns Telstra Corporation Limited. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns and has recommended Telstra Corporation Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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