The Telstra Group Ltd (ASX: TLS) share price has risen by an impressive 15% in 2025 to date, compared to a rise of 1.7% for the S&P/ASX 200 Index (ASX: XJO). But, there's more to those numbers than meets the eye.
Impressively, the Telstra share price rose by 7.1% during the volatile month of April 2025, compared to a rise of 3.6% for the ASX 200. Investors seeking safety were seemingly attracted to Telstra's defensive earnings. Households and businesses put a high value on their internet connection these days, in my view.
Fund manager Blackwattle owns Telstra shares in its portfolio and explained in its monthly update what makes the business attractive as an ASX defensive share.
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Blackwattle's positive view on Telstra shares
Blackwattle noted that in April, Telstra shares benefited from its "defensive nature and ongoing share buyback".
The fund manager described its investment as a long-term holding, noting the company continues to leverage its superior mobile network infrastructure, offering broader coverage, faster speeds, and greater reliability than peers.
Telstra points out that it has invested more than $40 billion in capital expenditure and spectrum over the last decade. Its 5G network now covers 91% of the population, with 60% of its total network traffic going through 5G in December 2024.
Blackwattle also pointed out that Telstra has delivered cost efficiencies and is increasingly using AI to automate network operations.
In the FY25 half-year result, Telstra said that it's "accelerating" its AI leadership to deliver on the connectivity demand of the future. The telco noted it's tapping into the "global best" to help reach its customer experience and network leadership ambitions faster.
Telstra's HY25 core fixed costs were reduced by $161 million, or 4.8% year over year. It said it's on track for a $350 million core fixed cost reduction by the end of FY25.
When Telstra gave its outlook commentary, the telco said:
Our digital infrastructure and network will be increasingly important to Australia's future prosperity
We will continue to invest sustainably to deliver for our customers, our shareholders and for Australia.
Overall, Telstra shares have benefited from its strong network, and the company seems determined to continue its track record of leading its sector.
