Q4 2026 Telstra Group Ltd Earnings Call

August 13, 2026

Speaker #1: Good morning, and welcome to Telstra's results announcement for the year-ending 30 June 2026. I'm Nathan Burley, head of investor relations. I'm joining today from the lands of the Gadigal people, and on behalf of Telstra, I acknowledge and pay my respects to the traditional custodians of country throughout Australia and recognize the continued connection Australia's First Nations people have to land, waters, and culture.

Speaker #1: Good morning, and welcome to Telstra's results announcement for the half-year ending 31st of December 2024. I'm Nathan Burley, head of investor relations. I am joining you today from the lands of the Gadigal people, and on behalf of Telstra, I acknowledge and pay my respects to the traditional custodians of country throughout Australia and recognize the continued connection Australia's First Nations people have to land, waters, and culture.

Nathan Burley: Good morning, and welcome to Telstra's results announcement for the H1 ending 31 December 2024. I am Nathan Burley, Head of Investor Relations. I am joining you today from the lands of the Gadigal people. On behalf of Telstra, I acknowledge and pay my respects to the traditional custodians of country throughout Australia and recognize the continued connection Australia's First Nations people have to land, waters and culture. We pay our respects to elders, past and present. This morning, we will have presentations from our CEO, Vicki Brady, and our CFO, Michael Ackland. We will then open to questions from analysts, investors, and the media. I will now hand over to Vicki.

Nathan Burley: Good morning, and welcome to Telstra's results announcement for the year ending 30 June 2026. I am Nathan Burley, Head of Investor Relations. I am joining today from the lands of the Gadigal people. On behalf of Telstra, I acknowledge and pay my respects to the traditional custodians of the country throughout Australia, and recognize the continued connection Australian's First Nations people have to land, waters, and culture. We pay our respects to elders past and present. This morning, we will have presentations from our CEO, Vicki Brady, and our CFO, Michael Ackland. We will then open to questions from analysts, investors, and the media. I will now hand over to Vicki.

Nathan Burley: Good morning, and welcome to Telstra's Results Announcement for the Year Ending 30 June 2026. I am Nathan Burley, Head of Investor Relations. I am joining today from the lands of the Gadigal people. On behalf of Telstra, I acknowledge and pay my respects to the traditional custodians of the country throughout Australia, and recognize the continued connection Australian's First Nations people have to land, waters, and culture. We pay our respects to elders past and present. This morning, we will have presentations from our CEO, Vicki Brady, and our CFO, Michael Ackland. We will then open to questions from analysts, investors, and the media. I will now hand over to Vicki.

Speaker #1: We pay our respects to elders past and present. This morning we'll have presentations from our CEO, Vicky Brady, and our CFO, Michael Lackland. We'll then open to questions from analysts, investors, and the media.

Speaker #1: We pay our respects to elders past and present. This morning we will have presentations from our CEO, Vicki Brady, and our CFO, Michael Ackland.

Speaker #1: We pay our respects to elders past and present. This morning we will have presentations from our CEO, Vicky Brady, and our CFO, Michael Ackland.

Speaker #1: We will then open to questions from analysts, investors, and the media. I will now hand over to Vicki.

Speaker #1: We will then open to questions from analysts, investors, and the media. I will now hand over to Vicky.

Speaker #1: I will now hand over to Vicky.

Speaker #2: Thank you, Nathan, and good morning, everyone. And thank you for joining us. I'll make three comments reflecting on the year, before turning to Telstra's overall performance and our outlook for the future.

Speaker #2: Thank you, Nathan, and good morning, everyone, and thank you for joining us. I'll make three comments reflecting on the year. Before turning to Telstra's overall performance and our outlook for the future, Michael will then cover the details of our financials.

Speaker #2: Thanks, Nathan. And good morning, everyone, and thank you for joining us. I'll make some high-level comments about the broader landscape, the telecommunications sector, and Telstra's overall business performance, before Michael gets into the detail of our financials.

Vicki Brady: Thanks, Nathan, and good morning, everyone, and thank you for joining us. I will make some high level comments about the broader landscape, the telecommunications sector, and Telstra's overall business performance before Michael gets into the details of our financials. Starting with our sector, I spoke about at our full year results in August about the critical role that telecommunications has to play in Australia's future and in realizing the benefits of transformative technologies, including AI, to unlock productivity, innovation, and growth. When you think about the developments we have seen since then, you can see how rapidly this space is evolving. There are two points I would like to make on this. First, AI needs to be underpinned by secure and reliable connectivity, which translates into massive demand for digital infrastructure assets. There is no AI without connectivity. To realize its potential, we absolutely need to get the foundations right.

Vicki Brady: Thank you, Nathan, and good morning, everyone, and thank you for joining us. I will make three comments reflecting on the year before turning to Telstra's overall performance and our outlook for the future. Michael will then cover the details of our financials. First, the pace of change over the last 12 months has been extraordinary, from geopolitics to policy and technology, with AI and global investments in digital infrastructure accelerating dramatically. Second, network resilience was brought into sharp focus. We experienced a significant network outage in July, which reinforced how much Australians rely on connectivity, and we know that reliance will only grow. Third, Australia is at a critical moment. We are laying the foundations for the next few decades of our economic growth, prosperity, and resilience.

Speaker #2: Michael will then cover the details of our financials. First, the pace of change over the last 12 months has been extraordinary, from geopolitics to policy and technology, with AI and global investments in digital infrastructure accelerating dramatically.

Speaker #2: First, the pace of change over the last 12 months has been extraordinary. From geopolitics to policy and technology, with AI and global investments in digital infrastructure accelerating dramatically.

Speaker #2: Starting with our sector, I spoke about at our full-year results in August about the critical role the telecommunications has to play in Australia's future, and in realizing the benefits of transformative technologies including AI to unlock productivity, innovation, and growth.

Speaker #2: Second, network resilience was brought into sharp focus. We experienced a significant network outage in July, which reinforced how much Australians rely on connectivity. And we know that reliance will only grow.

Speaker #2: When you think about the developments we've seen since then, you can see how rapidly this space is evolving. There are two points I'd like to make on this.

Speaker #2: Third, Australia is at a critical moment. We are laying the foundations for the next few decades of our economic growth, prosperity, and resilience. We must position ourselves to drive and participate in the value created by AI and the digital infrastructure boom, with sovereign capability and assets working in our national interest.

Speaker #2: First, AI needs to be underpinned by secure and reliable connectivity, which translates into massive demand for digital infrastructure assets. There is no AI without connectivity, and to realize its potential, we absolutely need to get the foundations right.

Vicki Brady: We must position ourselves to drive and participate in the value created by AI and the digital infrastructure boom, with sovereign capability and assets working in our national interest. At the same time, Australians are concerned about the impact AI could have on jobs and society. As a country, how we build trust, skills, and inclusion will have a significant impact on whether it delivers benefits to all Australians. Telstra's Connected Future 30 strategy positions us well to lead and adapt through this rapidly changing context. We remain committed to enabling Australia's digital future and to working with government to ensure benefits and opportunities are shared widely. Turning now to Telstra's performance for the year. FY26 was a strong year as we continued to deliver for customers and shareholders.

Speaker #2: The telecommunications sector has a vital role to play in Australia's future resilience and prosperity. And that role will only grow as technology continues to evolve.

Vicki Brady: We must position ourselves to drive and participate in the value created by AI and the digital infrastructure boom, with sovereign capability and assets working in our national interest. At the same time, Australians are concerned about the impact AI could have on jobs and society. As a country, how we build trust, skills, and inclusion will have a significant impact on whether it delivers benefits to all Australians. Telstra's Connected Future 30 strategy positions us well to lead and adapt through this rapidly changing context. We remain committed to enabling Australia's digital future and to working with government to ensure benefits and opportunities are shared widely. Turning now to Telstra's performance for the year. FY 2026 was a strong year as we continued to deliver for customers and shareholders.

Speaker #2: At the same time, Australians are concerned about the impact AI could have on jobs and society. As a country, how we build trust, skills, and inclusion will have a significant impact on whether it delivers benefits to all Australians.

Vicki Brady: The telecommunications sector has a vital role to play in Australia's future resilience and prosperity, and that role will only grow as technology continues to evolve. Second, to deliver on the connectivity demands of the future, as a company, we absolutely need to be a leader in AI. Our joint venture with Accenture will see us tap into the global best to complement our own leading AI capabilities and help us reach our customer experience and network leadership ambitions faster. We are in an exciting era as connectivity and technology are transforming again. There are vast opportunities ahead of us, but to remain a leader, we need to accelerate. I see this joint venture as a defining moment in our AI journey to help unlock value for our customers, our people, and our business. Turning now to Telstra's performance for the half.

Speaker #2: Second, to deliver on the connectivity demands of the future as a company, we absolutely need to be a leader in AI. Our joint venture with Accenture will see us tap into the global best to complement our own leading AI capabilities.

Speaker #2: Telstra's connected future 30 strategy positions us well to lead and adapt through this rapidly changing context. We remain committed to enabling Australia's digital future and to working with government to ensure benefits and opportunities are shared widely.

Speaker #2: Telstra's Connected Future 30 strategy positions us well to lead and adapt through this rapidly changing context. We remain committed to enabling Australia's digital future and to working with government to ensure benefits and opportunities are shared widely.

Speaker #2: And help us reach our customer experience and network leadership ambitions faster. We are in an exciting era, as connectivity and technology are transforming again.

Speaker #2: Turning now to Telstra's performance for the year. FY26 was a strong year, as we continue to deliver for customers and shareholders. We increased investment in our network and delivered ongoing earnings growth, reflecting momentum across our business, and disciplined cost control and capital management.

Speaker #2: Turning now to Telstra's performance for the year. FY26 was a strong year, as we continue to deliver for customers and shareholders. We increased investment in our network and delivered ongoing earnings growth, business and disciplined cost control and capital management.

Speaker #2: There are vast opportunities ahead of us, but to remain a leader we need to accelerate. I see this joint venture as a defining moment in our AI journey, to help unlock value for our customers, our people, and our business.

Vicki Brady: We increased investment in our network and delivered ongoing earnings growth, reflecting momentum across our business and disciplined cost control and capital management. You can see a summary of our 2026 results on this slide. Reported financial performance compared to the prior period included EBITDA up 3% to AUD 8.2 billion, net profit after tax up 2.7% to AUD 2.4 billion, and earnings per share up 5.3% to AUD 0.199. Our underlying results provide a clearer view of financial performance. Our underlying EBITDA was up 4% to AUD 8.3 billion, cash EPS up 14% to AUD 0.255, and underlying return on invested capital up 0.5 percentage points to 9%. Michael will take you through our financial performance in detail, including the drivers of our underlying EBITDA growth across Mobiles, Fixed Consumer and Small Business, InfraCo Fixed, and Amplitel.

Speaker #2: You can see a summary of our 2026 results on this slide. Reported financial performance compared to the prior period included EBITDA up 3% to 8.2 billion, net profit after tax up 2.7% to 2.4 billion, and earnings per share up 5.3% to 19.9 cents.

Speaker #2: You can see a summary of our 2026 results on this slide. Reported financial performance compared to the prior period, included EBITDA up 3% to 8.2 billion, net profit after tax up 2.7% to 2.4 billion, and earnings per share up 5.3% to 19.9 cents.

Vicki Brady: We increased investment in our network and delivered ongoing earnings growth, reflecting momentum across our business and disciplined cost control and capital management. You can see a summary of our 2026 results on this slide. Reported financial performance compared to the prior period included EBITDA up 3% to AUD 8.2 billion, net profit after tax up 2.7% to AUD 2.4 billion, and earnings per share up 5.3% to AUD 0.1990. Our underlying results provide a clearer view of financial performance. Our underlying EBITDA was up 4% to AUD 8.3 billion, cash EPS up 14% to AUD 0.255, and underlying return on invested capital up 0.5 percentage points to 9%. Michael will take you through our financial performance in detail, including the drivers of our underlying EBITDA growth across Mobiles, Fixed Consumer and Small Business, InfraCo Fixed, and Amplitel.

Speaker #2: Turning now to Telstra's performance for the half. You can see a summary of our results on this slide. These are a strong set of results, delivering a fourth consecutive year of first half underlying growth, reflecting momentum across our business, strong cost control, and disciplined capital management.

Vicki Brady: You can see a summary of our results on this slide. These are a strong set of results, delivering a fourth consecutive year of H1 underlying growth, reflecting momentum across our business, strong cost control and disciplined capital management. Financial performance in H1 2025 included EBITDA up 6% to AUD 4.2 billion. Profit for the period up 7.1% to AUD 1.1 billion. Earnings per share up 6% to AUD 0.089, and ROIC up 0.2 points to 8%. Our FY25 guidance remains unchanged. We are committed to increasing earnings, capital discipline and portfolio management, with the aim to further improve ROIC. On the back of earnings growth, the board resolved to pay a fully franked interim dividend of AUD 0.095 per share, representing a 5.6% increase on the prior corresponding period.

Speaker #2: Financial performance in first half 2025 included EBITDA up 6% to 4.2 billion, profit for the period, profit for the period up 7.1% to 1.1 billion, earnings per share up 6% to 8.9 cents, and ROIC up 0.2 points to 8%.

Speaker #2: Our underlying results provide a clearer view of financial performance. Our underlying EBITDA was up 4% to 8.3 billion, cash EPS up 14% to 25.5 cents, and underlying return on invested capital up 0.5 percentage points to 9%.

Speaker #2: Our FY25 guidance remains unchanged. We are committed to increasing earnings, capital discipline, and portfolio management, with the aim to further improve ROIC. On the back of earnings growth, the board resolved to pay a fully franked interim dividend of 9.5 cents per share, representing a 5.6% increase on the prior corresponding period.

Speaker #2: Michael will take you through our financial performance in detail, including the drivers of our underlying EBITDA growth across mobiles, fixed consumer and small business infraco fixed and amplitel.

Speaker #2: Michael will take you through our financial performance in detail, including the drivers of our underlying EBITDA growth across mobiles, fixed consumer, and small business infraco fixed and amplitel.

Speaker #2: He will also detail the drivers of our cash earnings growth and positive operating leverage of 2 percentage points, which was in line with our Connected Future 30 targets.

Speaker #2: He will also detail the drivers of our cash earnings growth and positive operating leverage of 2 percentage points, which was in line with our connected future 30 targets.

Vicki Brady: He will also detail the drivers of our cash earnings growth and positive operating leverage of 2 percentage points, which was in line with our Connected Future 30 targets. On the back of cash earnings growth, the board resolved to pay a final dividend of AUD 0.105 per share, bringing the total dividend for the year to AUD 0.21 per share and representing a 10.5% increase in the prior year on a cash basis. The final dividend is 90.5% franked, with a franked amount of AUD 0.095 per share and an unfranked amount of AUD 0.01 per share. The final dividend is consistent with our capital management framework and our aim to deliver a sustainable and growing dividend. Our dividend is supported by strong cash earnings, and our Connected Future 30 ambition remains to deliver mid-single-digit growth in cash earnings.

Speaker #2: On the back of cash earnings growth, the board resolved to pay a final dividend of 10.5 cents per share, bringing the total dividend for the year to 21 cents per share and representing a 10.5% increase in the prior year on a cash 90.5% franked, with a franked amount of 9.5 cents per share, and an unfranked amount of 1 cent per share.

Vicki Brady: He will also detail the drivers of our cash earnings growth and positive operating leverage of 2 percentage points, which was in line with our Connected Future 30 targets. On the back of cash earnings growth, the board resolved to pay a final dividend of AUD 0.105 per share, bringing the total dividend for the year to AUD 0.21 per share and representing a 10.5% increase in the prior year on a cash basis. The final dividend is 90.5% franked, with a franked amount of AUD 0.095 per share and an unfranked amount of AUD 0.01 per share. The final dividend is consistent with our capital management framework and our aim to deliver a sustainable and growing dividend. Our dividend is supported by strong cash earnings and our Connected Future 30 ambition remains to deliver mid-single digit growth in cash earnings.

Speaker #2: This outcome is consistent with our capital management framework principle, to maximize the fully franked dividend and seek to grow it over time. Today we also announced an on-market share buyback of up to 750 million.

Vicki Brady: This outcome is consistent with our capital management framework principle to maximize the fully franked dividend and seek to grow it over time. Today, we also announced an on-market share buyback of up to AUD 750 million, which has been enabled by our fiscal discipline and the strength of our balance sheet. Our ongoing focus on portfolio management further strengthens our balance sheet and our ability to return capital. This includes the recently announced sale of our Foxtel interest to DAZN, and the sale of our Titanium Ventures Fund II interest for AUD 137 million. The buyback supports earnings and dividend per share growth over time. Along with the increased interim dividend, it demonstrates the board and management's strong confidence in our financial strength and outlook. Looking now at our results across the business. We grew underlying EBITDA across our Mobiles, InfraCo Fixed C&SB, Fixed Enterprise, and International businesses.

Speaker #2: The final dividend is 90.5% franked, with a franked amount of 9.5 cents per share, and an unfranked amount of 1 cent per share. The final dividend is consistent with our capital management framework and our aim to deliver a sustainable and growing dividend.

Speaker #2: Which has been enabled by our fiscal discipline and the strength of our balance sheet. Our ongoing focus on portfolio management further strengthens our balance sheet, and our ability to return capital.

Speaker #2: The final dividend is consistent with our capital management framework and our aim to deliver a sustainable and growing dividend. Our dividend is supported by strong cash earnings, and our Connected Future 30 ambition remains, to deliver mid-single-digit growth in cash earnings.

Speaker #2: This includes the recently announced sale of our Foxtel interest to Dezone, and the sale of our titanium ventures fund to interest, for 137 million.

Speaker #2: Our dividend is supported by strong cash earnings and our connected future 30 ambition remains, to deliver mid-single-digit growth in cash earnings. In June this year, we completed our 1.25 billion dollar on-market share buyback, and today we have announced a further on-market share buyback of up to 1 billion dollars.

Vicki Brady: The final dividend is consistent with our capital management framework and our aim to deliver a sustainable and growing dividend. Our dividend is supported by strong cash earnings and our Connected Future 30 ambition remains to deliver mid-single digit growth in cash earnings.

Speaker #2: The buyback supports earnings and dividend per share growth over time, and along with the increased interim dividend, demonstrates the board and management's strong confidence in our financial strength and outlook.

Speaker #2: In June this year, we completed our 1.25 billion dollar on-market share buyback, and today we have announced a further on-market share buyback of up to 1 billion dollars.

Vicki Brady: In June this year, we completed our AUD 1.25 billion on-market share buyback, and today we have announced a further on-market share buyback of up to AUD 1 billion. This shifts our capital structure towards more debt and less equity and has been enabled by earnings growth and the strength of our balance sheet. Importantly, these buybacks are alongside increased CapEx and strategic investment. Buybacks allow us to lower our cost of capital and manage our source of funding more efficiently. This approach also supports earnings and dividends per share growth, and together with increased dividends, demonstrates the board and management's confidence in our financial strength and outlook. Turning to our Connected Future 30 strategy. Over FY26, we laid important foundations for its delivery. There is a detailed scorecard in the appendix that shows our progress.

Speaker #2: This shifts our capital structure towards more debt and less equity, and has been enabled by earnings growth and the strength of our balance sheet.

Speaker #2: Looking now at our results across the business, we grew underlying EBITDA across our mobiles, infraco fixed, fixed CNSB, fixed enterprise, and international businesses. Our mobiles business has continued to perform strongly, with EBITDA growth of 92 million.

Speaker #2: Importantly, these buybacks are alongside increased capex and strategic investment. Buybacks allow us to lower our cost of capital and manage our source of funding more efficiently.

Vicki Brady: Our Mobiles business has continued to perform strongly, with EBITDA growth of AUD 92 million. This growth was driven by more people choosing our network with 119,000 net new mobile handheld customers and ARPU growth. Mobile services revenue grew by 3.1%. Our InfraCo Fixed EBITDA grew by AUD 58 million, reflecting ongoing demand for our assets. Our Fixed C&SB business continued to grow, with EBITDA growth of AUD 78 million, reflecting ongoing cost discipline and ARPU growth. Our Fixed Enterprise business EBITDA grew by AUD 25 million, reflecting the decisive actions we have taken so far to reset this business, resulting in cost reductions. These actions include the progress we have made towards reducing our product portfolio by two-thirds and reorganizing our teams to deliver better for customers and operate more efficiently. We continue to focus on the overall reset of this business.

Speaker #2: This growth was driven by more people choosing our network, with 119,000 net new mobile handheld customers and APU growth. Mobile services revenue grew by 3.1%.

Speaker #2: This approach also supports earnings and dividends per share growth and, together with increased dividends, demonstrates the board and management's confidence in our financial strength and outlook.

Vicki Brady: Buybacks allow us to lower our cost of capital and manage our source of funding more efficiently. This approach also supports earnings and dividends per share growth, and together with increased dividends, demonstrates the board and management's confidence in our financial strength and outlook. Turning to our Connected Future 30 strategy. Over FY26, we laid important foundations for its delivery. There is a detailed scorecard in the appendix that shows our progress. I won't go through that now, but I will call out some highlights.

Speaker #2: Our infraco fixed EBITDA grew by 58 million, reflecting ongoing demand for our assets. Our fixed CNSB business continued to grow, with EBITDA growth of 78 million.

Speaker #2: Turning to our Connected Future 30 strategy. Over FY26, we laid important foundations for its delivery. There is a detailed scorecard in the appendix that shows our progress.

Speaker #2: Turning to our connected future 30 strategy. Over FY26, we laid important foundations for its delivery. There is a detailed scorecard in the appendix that shows our progress.

Speaker #2: Reflecting ongoing cost discipline and APU growth. Our fixed enterprise business EBITDA grew by 25 million, reflecting the decisive actions we have taken so far to reset this business, resulting in cost reductions.

Speaker #2: I won't go through that now, but I will call out some highlights. Customer engagement is becoming a stronger commercial advantage for Telstra. Over the last year, we've focused on making interactions easier, more personal, and more valuable for customers.

Vicki Brady: I won't go through that now, but I will call out some highlights. Customer engagement is becoming a stronger commercial advantage for Telstra. Over the last year, we focused on making interactions easier, more personal, and more valuable for customers. We now have more customer support available across more hours and channels, including 24 by 7 fault support. We have continued to add new functionality to our AI-powered digital assistant and digital self-service tools, and more customers are choosing these tools and having their inquiry resolved. We also introduced generative AI-powered search across telstra.com and My Telstra app, as well as translation into 37 languages. For customers who prefer to call us, our average call handling time, our wait time, have reduced to 2 minutes.

Speaker #2: These actions include the progress we have made towards reducing our product portfolio by two-thirds, and reorganizing our teams, to deliver better for customers and operate more efficiently.

Vicki Brady: Customer engagement is becoming a stronger commercial advantage for Telstra. Over the last year, we've focused on making interactions easier, more personal, and more valuable for customers. We now have more customer support available across more hours and channels, including 24x7 fault support. We have continued to add new functionality to our AI-powered digital assistant and digital self-service tools, and more customers are choosing these tools and having their inquiry resolved. We also introduced generative AI-powered search across telstra.com and My Telstra app, as well as translation into 37 languages. For customers who prefer to call us, our average call handling time, our wait time have reduced to 2 minutes. We completed the migration of our consumer customers to the new digital stack and decommissioned the old system last month, creating a stronger foundation to innovate in how we serve customers.

Speaker #2: We now have more customer support across available across more hours and channels, including 24 by 7 fault support. We have continued to add new functionality to our AI-powered digital assistant and digital self-service tools, and more customers are choosing these tools and having their inquiry resolved.

Speaker #2: We continue to focus on the overall research of this business. Our international business EBITDA grew by 29 million, due to strong growth in wholesale and enterprise, from improved product mix and cost discipline.

Speaker #2: We also introduced generative AI-powered search across telstra.com and mytelstra app, as well as translation into 37 languages. For customers who prefer to call us, our average call handling time out wait time have reduced to 2 minutes.

Vicki Brady: Our International business EBITDA grew by AUD 29 million due to strong growth in wholesale and enterprise from improved product mix and cost discipline. Our Digicel Pacific business continued to operate in a challenging environment. On costs, we reduced operating expenses through role reductions and productivity gains, partly offset by cost inflation. Core fixed costs decreased by 4.8% or AUD 161 million. Cumulatively, we have reduced our core fixed costs by AUD 283 million since FY22 and are on track to achieve our AUD 350 million ambition by the end of FY25. Turning briefly to our T25 strategy. Overall, this is on track, including our growth ambitions in underlying EBITDA, EPS, and ROIC. We are approaching a significant milestone as we finish one strategy and begin a new one, and we're in a good position with strong momentum in the business.

Speaker #2: Our DigiCell Pacific business continued to operate in a challenging environment. On costs, we reduced operating expenses through role reductions and productivity gains, partly offset by cost inflation.

Speaker #2: We completed the migration of our consumer customers to the new digital stack and decommissioned the old system last month, creating a stronger foundation to innovate in how we serve customers.

Vicki Brady: For customers who prefer to call us, our average call handling time, our wait time have reduced to 2 minutes. We completed the migration of our consumer customers to the new digital stack and decommissioned the old system last month, creating a stronger foundation to innovate in how we serve customers.

Speaker #2: Core fixed costs decreased by 4.8%, or 161 million. Cumulatively, we have reduced our core fixed costs by 283 million since FY22, and are on track to achieve our 350 million ambition by the end of FY25.

Vicki Brady: We completed the migration of our consumer customers to the new digital stack and decommissioned the old system last month, creating a stronger foundation to innovate in how we serve customers. For example, we rolled out Customer IQ in the year, bringing together millions of data points to better understand the experience of our customers. This is helping our team to proactively address issues and have better conversations with customers, supported by AI-powered tools to help them get up to speed quickly and improve complaints handling. These improvements are translating into better experiences and more customers choosing us and staying with us. In FY26, strategic NPS increased to +20 and episode NPS to +49, the highest year-end result since we started measuring NPS. Under our network as a product layer, we continued to invest to deliver Australia's leading mobile network.

Speaker #2: For example, we rolled out customer IQ in the year bringing together millions of data points to better understand the experience of our customers. This is helping our team to proactively address issues and have better conversations with customers, supported by AI-powered tools to help them get up to speed quickly and improve complaints handling.

Vicki Brady: For example, we rolled out Customer iQ in the year, bringing together millions of data points to better understand the experience of our customers. This is helping our team to proactively address issues and have better conversations with customers, supported by AI-powered tools to help them get up to speed quickly and improve complaints handling. These improvements are translating into better experiences and more customers choosing us and staying with us. In FY26, strategic NPS increased to +20 and episode NPS to +49, the highest year-end result since we started measuring NPS. Under our network as a product layer, we continued to invest to deliver Australia's leading mobile network. Over the last 5 years, we have invested more than AUD 9.5 billion in our mobile network nationally, with AUD 3.8 billion of this in regional Australia.

Speaker #2: Turning briefly to our T25 strategy. Overall, this is on track, including our growth ambitions in underlying EBITDA, EPS, and ROIC. We are approaching a significant milestone, as we finish one strategy and begin a new one.

Speaker #2: These improvements are translating into better experiences and more customers choosing us and staying with us. In FY26, strategic MPS increased to positive 20, and episode MPS to positive 49, the highest year-end results since we started measuring MPS.

Speaker #2: And we're in a good position, with strong momentum in the business. Our achievements by strategic pillar and overall scorecard performance are included in the appendix slides lodged with the ASX today, so I won't talk to them in detail.

Vicki Brady: Our achievements by strategic pillar and overall scorecard performance are included in the appendix slides lodged with the ASX today, so I won't talk to them in detail. The more than AUD 40 billion in CapEx and spectrum we have invested over the last decade has radically transformed the connectivity Australia relies on, and we continue to invest. On digital infrastructure, we have seven fiber routes between Australia's major capital cities under construction as part of our new intercity fiber network. With more than 3,000 kilometers of fiber in the ground. We are pleased to announce that the first two routes, from Sydney to Canberra and Melbourne to Canberra, will be ready for service later in 2025, and we are already taking orders.

Speaker #2: Under our network as a product layer, we continue to invest, to deliver Australia's leading mobile network. Over the last 5 years, we have invested more than 9.5 billion dollars in our mobile network nationally, with 3.8 billion of this in regional Australia.

Speaker #2: Under our network as a product layer, we continue to invest to deliver Australia's leading mobile network. Over the last 5 years, we have invested more than 9.5 billion dollars in our mobile network nationally, with 3.8 billion of this in regional Australia.

Speaker #2: The more than 40 billion dollars in CapEx and spectrum we have invested over the last decade has radically transformed the connectivity Australia relies on, and we continue to invest.

Vicki Brady: Over the last five years, we have invested more than AUD 9.5 billion in our mobile network nationally, with AUD 3.8 billion of this in regional Australia. In total, we have invested more than AUD 19 billion in overall CapEx and spectrum in the last five years. As our profit has grown, so too has our investment in our networks and digital infrastructure. In FY26, it was around AUD 800 million more than it was in FY21. Over FY26, we upgraded nearly 1,200 mobile sites with 5G advanced capability and built more than 150 new mobile sites to continue to improve the experience on our mobile network. We also upgraded more than 1,800 network sites with backup power. Every year, we experience around 165,000 mains power interruptions across our fixed and mobile sites. Due to our investments in backup power, around 97% of those had no impact on services to customers in FY26.

Speaker #2: On digital infrastructure, we have seven fibre routes between Australia's major capital cities under construction, as part of our new intercity fibre network. With more than 3,000 kilometres of fibre in the ground.

Speaker #2: In total, we have invested more than 19 billion dollars in overall capex and spectrum in the last 5 years. As our profit has grown, so too has our investment in our networks and digital infrastructure.

Vicki Brady: In total, we have invested more than AUD 19 billion in overall CapEx and spectrum in the last five years. As our profit has grown, so too has our investment in our networks and digital infrastructure. In FY26, it was around AUD 800 million more than it was in FY21. Over FY26, we upgraded nearly 1,200 mobile sites with 5G advanced capability and built more than 150 new mobile sites to continue to improve the experience on our mobile network. We also upgraded more than 1,800 network sites with backup power. Every year, we experience around 165,000 mains power interruptions across our fixed and mobile sites, and due to our investments in backup power, around 97% of those had no impact on services to customers in FY26. Overall, these improvements and others are translating into more consistent experiences for customers.

Speaker #2: We are pleased to announce that the first two routes, from Sydney to Canberra and Melbourne to Canberra, will be ready for service later in 2025, and we are already taking orders.

Speaker #2: In FY26, it was around 800 million more than it was in FY21. Over FY26, we upgraded nearly 1,200 mobile sites with 5G advanced capability, and built more than 150 new mobile sites, to continue to improve the experience on our mobile network.

Speaker #2: These brand new routes will enable at-scale delivery of dark fibre solutions and options for wavelength services for a wide range of customers, including hyperscalers and the AI industry.

Vicki Brady: These brand new routes will enable at-scale delivery of dark fiber solutions and options for wavelength services for a wide range of customers, including hyperscalers and the AI industry. The foundation fiber will also have the ability to serve regional cities and towns along the route, enabling productivity and economic development opportunities in regional Australia. As you can imagine, this is a big and complex project. We are building momentum whilst also managing some delays and cost pressures. We remain committed to managing the project within the AUD 1.6 billion envelope and to delivering mid-teens IRR. We will be disciplined in the build of this 30-year asset, including prioritizing the build of routes in line with customer demand and returns. We are very confident in what this network will deliver for customers, shareholders, and Australia.

Speaker #2: We also upgraded more than 1,800 network sites with backup power. Every year, we experience around 165,000 mains power interruptions across our fixed and mobile sites, and due to our investments in backup power, around 97% of those had no impact on services to customers in FY26.

Speaker #2: The foundation fibre, we'll also have the ability to serve regional cities and towns along the route, enabling productivity and economic development opportunities in regional Australia.

Vicki Brady: Every year, we experience around 165,000 mains power interruptions across our fixed and mobile sites. Due to our investments in backup power, around 97% of those had no impact on services to customers in FY26.

Speaker #2: As you can imagine, this is a big and complex project. We are building momentum whilst also managing some delays and cost pressures. We remain committed to managing the project within the 1.6 billion envelope and to delivering mid-teens IRR.

Speaker #2: Overall, these improvements and others are translating into more consistent experiences for customers. In FY26, we left it at lifted our network experience index by 1.6 points, which is our measure of network reliability and performance.

Vicki Brady: Overall, these improvements and others are translating into more consistent experiences for customers. In FY26, we lifted our network experience index by 1.6 points, which is our measure of network reliability and performance. We also brought new services and value to customers. We chose to invest in satellite messaging, and we recently expanded this to include select satellite applications like maps, weather, and internet messaging. We continued to expand our product offerings for enterprise customers across mobile and fixed, including Dynamic 5G to deliver tailored network performance and our Adaptive Network Center, which provides our customers greater visibility and control over their network. We also introduced Adaptive Collaboration to help mid-market customers integrate calling and collaboration tools. We know we let our customers down in July, and we have taken full accountability for this.

Speaker #2: We will be disciplined in the build of this 30-year asset, including prioritising the build of routes in line with customer demand and returns. We are very confident in what this network will deliver for customers, shareholders, and Australia.

Speaker #2: We also brought new services and value to customers. We chose to invest in satellite messaging and we recently expanded this to include select satellite applications, like maps, weather, and internet messaging.

Vicki Brady: In FY26, we lifted our network experience index by 1.6 points, which is our measure of network reliability and performance. We also brought new services and value to customers. We chose to invest in satellite messaging, and we recently expanded this to include select satellite applications like maps, weather, and internet messaging. We continue to expand our product offering for enterprise customers across mobile and fixed, including Dynamic 5G to deliver tailored network performance and our Adaptive Network Centre, which provides our customers greater visibility and control over their network. We also introduced Adaptive Collaboration to help mid-market customers integrate calling and collaboration tools. We know we let our customers down in July, and we have taken full accountability for this. We have an initial understanding of the root cause of the outage and have taken steps to address that.

Speaker #2: We also continue to invest in our mobile network, and we have expanded our coverage to more than 3 million square kilometres, now reaching 99.7% of Australia's population.

Speaker #2: We continue to expand our product offerings for enterprise customers, across mobile and fixed, including dynamic 5G, to deliver tailored network performance and our adaptive network center, which provides our customers greater visibility and control over their network.

Speaker #2: We continue to expand our product offerings for enterprise customers, across mobile and fixed, including dynamic 5G to deliver tailored network performance, and our adaptive network center, which provides our customers greater visibility and control over their network.

Vicki Brady: We also continue to invest in our mobile network, and we have expanded our coverage to more than 3 million square kilometers, now reaching 99.7% of Australia's population. To put that in perspective, our mobile network covers more than double the area of Optus' network and around 3 times the area of the TPG Telecom network. We expanded our 5G network to cover 91% of the population, and we are on track to deliver on our goal of 95% 5G population coverage by the end of FY25. We will increase our mobile network investment by around AUD 800 million over the next 4 years within our business as usual CapEx. This is to extend our network leadership and deliver customers the most advanced, resilient, and reliable 5G mobile network in the country.

Speaker #2: To put that in perspective, our mobile network covers more than double the area of Optus's network, and around three times the area of the Vodafone TPG network.

Speaker #2: We also induce introduced adaptive collaboration, to help mid-market customers integrate calling and collaboration tools. We know we let our customers down in July, and we have taken full accountability for this.

Speaker #2: We expanded our 5G network to cover 91% of the our goal of 95% 5G population coverage by the end of FY25. We will increase our mobile network investment by around 800 million dollars over the next four years, within our business as usual CapEx.

Speaker #2: We have an initial understanding of the root cause of the outage and have taken steps to address that. We are completing our investigation with an external expert, and we will be transparent about those findings and the actions we take as a result.

Vicki Brady: We have an initial understanding of the root cause of the outage and have taken steps to address that. We are completing our investigation with an external expert, and we will be transparent about those findings and the actions we take as a result. We take any disruption to our customers and Australians extremely seriously. When things do go wrong, we are committed to taking accountability, giving people clear information, and fixing issues as quickly as possible. As connectivity becomes increasingly critical, we are also committed to continuing our work to further strengthen the resilience of our network and the services Australians rely on. This includes working with key government and enterprise customers to identify critical use cases and ensure appropriate resilience, redundancy, and safeguards are in place. Under digital infrastructure, we are seeing very strong demand signals for our digital infrastructure assets, and we are turning those into contracted value.

Speaker #2: We take any disruption to our customers and Australians extremely seriously. When things do go wrong, we're committed to taking accountability giving people clear information and fixing issues as quickly as possible.

Speaker #2: We take any disruption to our customers and Australians extremely seriously. When things do go wrong, we're committed to taking accountability, giving people clear information, and fixing issues as quickly as possible.

Speaker #2: This is to extend our network leadership and deliver customers the most advanced, resilient, and reliable 5G mobile network in the country. As part of that, we are extending our partnership with Ericsson, to deliver advanced 5G performance and to move towards autonomous, self-healing networks.

Vicki Brady: We are completing our investigation with an external expert, and we will be transparent about those findings and the actions we take as a result. We take any disruption to our customers and Australians extremely seriously. When things do go wrong, we are committed to taking accountability, giving people clear information, and fixing issues as quickly as possible. As connectivity becomes increasingly critical, we are also committed to continuing our work to further strengthen the resilience of our network and the services Australians rely on. This includes working with key government and enterprise customers to identify critical use cases and ensure appropriate resilience, redundancy, and safeguards are in place. Under digital infrastructure, we are seeing very strong demand signals for our digital infrastructure assets, and we are turning those into contracted value.

Speaker #2: As connectivity becomes increasingly critical, we're also committed to continuing our work to further strengthen the resilience of our network and the services Australians rely on.

Vicki Brady: As part of that, we are extending our partnership with Ericsson to deliver advanced 5G performance and to move towards autonomous self-healing networks. This plan will see us upgrade our radio access network with Ericsson's next-generation Open RAN ready hardware, along with implementing 5G Advanced software and AI and automation to optimize network management. This follows the closure of our 3G network in the half. I want to acknowledge there are a small number of customers who have faced issues since the closure. We are working with them to identify the cause and help them with their connectivity. This includes launching a dedicated 3G helpline to address customer and device-related questions, as well as a team of tech experts ready to find the best solutions to resolve issues. The driver for the closure of 3G remains the same, to deliver the best mobile network we can for our customers.

Vicki Brady: As connectivity becomes increasingly critical, we are also committed to continuing our work to further strengthen the resilience of our network and the services Australians rely on. This includes working with key government and enterprise customers to identify critical use cases and ensure appropriate resilience, redundancy, and safeguards are in place. Under digital infrastructure, we are seeing very strong demand signals for our digital infrastructure assets, and we are turning those into contracted value.

Speaker #2: This plan will see us upgrade our radio access network with Ericsson's next-generation OpenRAN ready hardware. Along with implementing 5G advanced software, an AI and automation to optimise network management.

Speaker #2: This includes working with key government and enterprise customers, to identify critical use cases, and ensure appropriate resilience, redundancy, and safeguards are in place. Under digital infrastructure, we are seeing very strong demand signals for our digital infrastructure assets, and we are turning those into contracted value.

Speaker #2: This follows the closure of our 3G network in the half. I want to acknowledge there are a small number of customers who have faced issues since the closure.

Speaker #2: We are working with them to identify the cause and help them with their connectivity. This includes launching a dedicated 3G help line to address customer and device related questions, as well as a team of tech experts ready to find the best solutions to resolve issues.

Speaker #2: Some of the world's largest cloud and AI companies have signed long-term contracts across our Aura network, subsea cable, or long-haul fiber assets, including Google, AWS, Firmus, and Microsoft as our foundational partner on our Aura network.

Vicki Brady: Some of the world's largest cloud and AI companies have signed long-term contracts across our Aura network, subsea cable, or long-haul fiber assets, including Google, AWS, Firmus, and Microsoft as our foundational partner on our Aura network. We are over halfway through the build of our Aura network with more than 8,500 kilometers of fiber in the ground and six routes ready for service. We now expect the total strategic investment, including Viasat, to be around AUD 1.8 billion through to FY28, compared with our previous estimate of around AUD 1.6 billion. Michael will speak more to the ongoing management of the remaining build. Our Aura sales pipeline has increased significantly over the last six months. This strengthens our confidence in the project's returns, including an expected mid-teens IRR and cash payback period of around nine years.

Vicki Brady: Some of the world's largest cloud and AI companies have signed long-term contracts across our Aura Network, subsea cable, or long-haul fiber assets, including Google, AWS, Firmus, and Microsoft as our foundational partner on our Aura Network. We are over halfway through the build of our Aura Network with more than 8,500 kilometers of fiber in the ground and six routes ready for service. We now expect the total strategic investment, including Viasat, to be around AUD 1.8 billion through to FY28, compared with our previous estimate of around AUD 1.6 billion. Michael will speak more to the ongoing management of the remaining build. Our Aura sales pipeline has increased significantly over the last six months. This strengthens our confidence in the project's returns, including an expected mid-teens IRR and cash payback period of around nine years.

Speaker #2: The driver for the closure of 3G remains the same. To deliver the best mobile network we can for our customers. This is meant migrating customers to 4G and 5G networks that are faster, more secure, and more reliable.

Speaker #2: We are over halfway through the build of our Aura network, with more than 8,500 kilometers of fiber in the ground and 6 routes ready for service.

Speaker #2: We are over halfway through the build of our Aura network, with more than 8.500 kilometers of fiber in the ground and 6 routes ready for service.

Speaker #2: We now expect the total strategic investment, including Fiasat, to be around 1.8 billion through to FY28, compared with our previous estimate of around 1.6 billion.

Speaker #2: We now expect the total strategic investment, including via SAT, to be around 1.8 billion through to FY28, compared with our previous estimate of around 1.6 billion.

Vicki Brady: This has meant migrating customers to 4G and 5G networks that are faster, more secure, and more reliable, and being able to redeploy the 3G spectrum to further improve those services. In January, we announced a collaboration with SpaceX's Starlink to deliver direct-to-handset outdoor text message capability to parts of the country that are beyond the reach of our mobile network. Down the track, direct-to-handset has the potential to be a game changer from a safety perspective for people living and traveling in remote Australia. But just like mobile networks have not replaced fiber, satellite does not have the capacity to replace mobile in the majority of areas. Terrestrial mobile networks will remain the primary form of connectivity for most people.

Speaker #2: And being able to redeploy the 3G spectrum to further improve those services. In January, we announced a collaboration with SpaceX's Starlink, to deliver direct-to-hand set outdoor text message capability to parts of the country that are beyond the reach of our mobile network.

Speaker #2: Michael will speak more to the ongoing management of the remaining build. Our Aura sales pipeline has increased significantly over the last 6 months, this strengthens our confidence in the project's returns, including an expected mid-teens IRR and cash payback period of around 9 years.

Speaker #2: Down the track, direct-to-hand set has the potential to be a game changer from a safety perspective for people living and travelling in remote Australia.

Speaker #2: But just like mobile networks have not replaced fibre, satellite does not have the capacity to replace mobile in the majority of areas. Terrestrial mobile networks will remain the primary form of connectivity for most people.

Speaker #2: Over FY26, we expanded our subsea cable capacity through partnerships with Google and Kettle, strengthening our international capacity and our offering to customers. We also completed the construction of 8 new satellite ground stations.

Speaker #2: Over FY26, we expanded our subsea cable capacity through partnerships with Google and Kepple, strengthening our international capacity and our offering to customers. We also completed the construction of 8 new satellite ground stations.

Vicki Brady: Over FY26, we expanded our sub-sea cable capacity through partnerships with Google and Keppel, strengthening our international capacity and our offering to customers. We also completed the construction of eight new satellite ground stations. Turning to the enablers of our strategy, you can see the progress we are making against them in the appendix slide, and I will call out two highlights. The first is our investment in data and AI capability for our people, with more personalized learning and tools. Over FY26, we expanded our data and AI academy with different learning pathways based on role, and more than 15,000 of our people completed at least one course. We were also one of the first in Australia to roll out Microsoft's personalized learning agent. 86% of our people with a Copilot license used it weekly or more over June, and we also added the ability to build agents.

Speaker #2: We will continue to invest. To maintain our terrestrial network coverage advantage, so that our customers can have the richer experience from more areas before they hand over to complementary satellite coverage.

Speaker #2: Turning to the enablers of our strategy. You can see the progress we're making against them in the appendix slide, and I will call out two highlights.

Vicki Brady: We will continue to invest to maintain our terrestrial network coverage advantage so that our customers can have the richer experience from more areas before they hand over to complimentary satellite coverage. For customers, we are continuously improving the experience for them. While there is always more to do, I am pleased to say we are on track to meet our Episode NPS T25 target. We also continue to be there for our customers in vulnerable circumstances, and we are on track to keep more than our target of 1 million customers connected in FY25. We know that cybersecurity and scams are a growing concern for our customers. We have expanded our Scam Indicator product with the Commonwealth Bank to cover both landlines and mobiles, and we recently extended this collaboration with a new product called Fraud Indicator to help prevent identity theft for our joint customers.

Speaker #2: The first is our investment in data and AI capability for our people, with more personalized learning and tools. Over FY26, we expanded our data and AI academy with different learning pathways based on role, and more than 15,000 of our people completed at least one course.

Speaker #2: For customers, we are continuously improving the experience for them. And while there is always more to do, I'm pleased to say we're on track to meet our episode MPS T25 target.

Speaker #2: We also continue to be there for our customers in vulnerable circumstances, and we are on track to keep more than our target of 1 million customers connected in FY25.

Speaker #2: We were also one of the first in Australia to roll out Microsoft's agent. 86% of our people with a Copilot license used it weekly or more over June, and we also added the ability to build agents.

Speaker #2: We were also one of the first in Australia to roll out Microsoft's personalized learning agent. 86% of our people with a Copilot license used it weekly or more over June, and we also added the ability to build agents.

Vicki Brady: Over FY26, we expanded our data and AI academy with different learning pathways based on role, and more than 15,000 of our people completed at least one course. We were also one of the first in Australia to roll out Microsoft's personalized learning agent. 86% of our people with a Copilot license used it weekly or more over June, and we also added the ability to build agents.

Speaker #2: We know that cybersecurity and scams are a growing concern for our customers. We have expanded our scam indicator product, with the Commonwealth Bank, to cover both landlines and mobiles.

Speaker #2: The second highlight relates to our technology leadership. We have been extremely disciplined about scaling AI with strong foundations. Including reusable architecture, governance, security, cost management, and simplifying our data ecosystem.

Vicki Brady: The second highlight relates to our technology leadership. We have been extremely disciplined about scaling AI with strong foundations, including reusable architecture, governance, security, cost management, and simplifying our data ecosystem. Over FY26, we reduced our data platforms by another 15. We have 17 today, and we are aiming for three. We also implemented a company-wide control plane that provides a central view of how AI is being used across the business to help us control costs, monitor adoption, optimize performance, manage risks, and ensure our AI is safe and compliant. We also have the ability to switch applications between AI models based on cost, speed, and reliability. Looking ahead, we are focused on continuing to deliver value for our customers, communities, and shareholders, including through delivering on our Connected Future 30 targets around cash earnings growth, underlying ROIC, and operating leverage.

Speaker #2: And we recently extended this collaboration with a new product called Fraud Indicator, to help prevent identity theft, for our joint customers. Alongside this, for our Telstra customers, we launched device security essentials, to help protect mobile phones from online threats.

Speaker #2: Over FY26, we reduced our data platforms by another 15. We have 17 today, and we're aiming for 3. We also implemented a company-wide control plane that provides a central view of how AI is being used across the business, to help us control costs, monitor adoption, optimize performance, manage risks, and ensure our AI is safe and compliant.

Vicki Brady: Alongside this, for our Telstra customers, we launched Device Security Essentials to help protect mobile phones from online threats. We introduced Scam Protect to alert mobile customers to suspicious incoming calls, and our Cleaner Pipes initiative continues to block millions of scam calls, texts, and emails from ever reaching them. For Australia, over the last 6 months, we have paid more than AUD 1 billion in dividends to shareholders, benefiting more than 16 million Australians. We also announced an up to AUD 750 million share buyback today. On disaster preparedness, we committed to upgrading 1,000 payphones in disaster-prone areas with free Wi-Fi, USB charging ports, and backup power by mid-2025. We have now upgraded almost 900, which can be a critical lifeline when the power goes out, and we continue to focus on improving the resilience of our assets to power failures.

Speaker #2: We introduced scam protect to alert mobile customers to suspicious incoming calls. And our cleaner pipes initiative continues to block millions of scam calls, texts, and them.

Speaker #2: For Australia, over the last six months, we have paid more than a billion dollars in dividends to shareholders, benefiting more than 16 million Australians.

Speaker #2: We also have the ability to switch applications between AI models based on cost, speed, and reliability. Looking ahead, we are focused on continuing to deliver value for our shareholders.

Speaker #2: We also announced an up to 750 million dollar share buyback today. On disaster preparedness, we committed to upgrading 1,000 payphones in disaster prone areas, with free Wi-Fi, USB charging ports, and backup power by mid-2025.

Vicki Brady: We also have the ability to switch applications between AI models based on cost, speed, and reliability. Looking ahead, we are focused on continuing to deliver value for our customers, communities, and shareholders, including through delivering on our Connected Future 30 targets around cash earnings growth, underlying ROIC, and operating leverage.

Speaker #2: Including through delivering on our connected future 30 targets around cash earnings growth, underlying ROIC, and operating leverage. Over FY27, there are 5 things I would like to call out.

Speaker #2: We've now upgraded almost 900, which can be a critical lifeline when the power goes out. And we continue to focus on improving the resilience of our assets to power failures.

Speaker #2: One, we are accelerating our mobile transformation to further improve the experience on our network. This includes through increasing the density of our network and accelerating our rollout of 5G standalone.

Vicki Brady: Over FY27, there are five things I would like to call out. One, we are accelerating our mobile transformation to further improve the experience on our network. This includes through increasing the density of our network and accelerating our rollout of 5G standalone to provide an even more consistent experience, more capacity, and lower latency for AI applications. Investment in mobile networks will be critical to unlocking national benefits from AI, as this is the way most people will use it. We are also increasing our investment in security to help keep our customers safe and taking the lessons from our outage in July to further inform our already increasing investment in network resilience. Two, we will continue to evolve our network as a product offerings and expand our mobile network APIs, enabling developers to integrate network capabilities into their applications.

Speaker #2: A big thank you to our teams, who work all year round, to make sure we're as prepared as we can be for when disaster strikes.

Speaker #2: To provide an even more consistent experience, more capacity, and lower latency for AI applications. Investment in mobile networks will be critical to unlocking national benefits from AI, as this is the way most people will use it.

Vicki Brady: A big thank you to our teams who work all year round to make sure we are as prepared as we can be for when disaster strikes. As we look ahead, we are focused on finishing T25 strongly and putting the business in the best possible position to commence our new strategy. I am looking forward to sharing more details about our new strategy closer to the end of this financial year. To close out FY25 strongly, we remain focused on lifting customer experience, delivering financial growth and value from our world-leading mobile network and infrastructure, continuing the reset of our enterprise business, and delivering on our commitment to simplify our operations and improve our productivity. Let me close by reiterating that there is no version of Australia's future that does not rely on technology in some form, and it will all need to be connected.

Speaker #2: As we look ahead, we are focused on finishing T25 strongly, and putting the business in the best possible position to commence our new strategy.

Speaker #2: I'm looking forward to sharing more details about our new strategy closer to the end of this financial year. To close out FY25 strongly, we remain focused on lifting customer experience, delivering financial growth and value from our world-leading mobile network and infrastructure, continuing the reset of our enterprise business, and delivering on our commitment to simplify our operations and improve our productivity.

Speaker #2: We're also increasing our investment in security to help keep our customers safe, and taking the lessons from our outage in July, to further inform our already increasing investment in network resilience.

Vicki Brady: We are also increasing our investment in security to help keep our customers safe and taking the lessons from our outage in July to further inform our already increasing investment in network resilience. Two, we will continue to evolve our network as a product offerings and expand our mobile network APIs, enabling developers to integrate network capabilities into their applications.

Speaker #2: Two, we will continue to evolve our network as a product offerings, and expand our mobile network APIs enabling developers to integrate network capabilities into their applications.

Speaker #2: Two, we will continue to evolve our network as a product offerings, and expand our mobile network APIs, enabling developers to integrate network capabilities into their applications.

Speaker #2: Let me close by reiterating that there is no version of Australia's future that does not rely on technology, in some form. And it will all need to be connected.

Speaker #2: Together with progressing our products across mobile and fixed, this will bring us closer to our goal of creating more value for from our networks for customers, and sharing in that value by reinventing commercial models.

Vicki Brady: Together with progressing our products across mobile and fixed, this will bring us closer to our goal of creating more value from our networks for customers and sharing in that value by reinventing commercial models. Three, we will continue to help our people build data and AI capability and transform our business and customer experience with AI. This includes through accelerating progress on our cross-company AI transformational initiatives like agentic customer care, expanding fraud detection and prevention, and improving fixed network planning and optimization. Four, we will focus on driving revenue from our digital infrastructure assets, including our Aura network. We will also consider future needs to support Australia as an AI and digital innovation hub, and we are assessing a range of opportunities, including in sub-sea cable capacity.

Speaker #2: Telstra's digital infrastructure and network will be increasingly important, to Australia's future prosperity. And we will continue to invest sustainably, to deliver for our customers, our shareholders, and for Australia.

Speaker #2: Three, we will continue to help our people build data and AI capability, and transform our business and customer experience with AI, this includes through accelerating progress on our cross-company AI transformational initiatives.

Speaker #2: Three, we will continue to help our people build data and AI capability, and transform our business and customer experience with AI. This includes through accelerating progress on our cross-company AI transformational initiatives.

Vicki Brady: Telstra's digital infrastructure and network will be increasingly important to Australia's future prosperity, and we will continue to invest sustainably to deliver for our customers, our shareholders, and for Australia. My sincere thanks to the Telstra team for all their efforts over the half. As we head towards the finish line on T25, it is their work and dedication that has helped put us in a strong position. I will now hand to Michael to take you through the results in detail.

Speaker #2: My sincere thanks to the Telstra team, for all their efforts over the half. As we head towards the finish line on T25, it is their work and dedication that has helped put us in a strong position.

Speaker #2: Like agentic customer care, expanding fraud detection and prevention, and improving fixed network planning and optimization. Four, we will focus on driving revenue from our digital infrastructure assets, including our Aura network.

Speaker #2: I'll now hand to Michael to take you through the results in detail.

Speaker #2: We will also consider future needs to support Australia as an AI and digital innovation hub, and we are assessing a range of opportunities, including in subsea cable capacity.

Speaker #1: Thanks, Vicky. So turning to slide 12, which shows our continued growth. This is our fourth consecutive year of first half underlying growth. We've delivered a net profit after tax of 1.1 billion, up 7.1%, and earnings per share of 8.9 cents, up 6%.

Michael Ackland: Thanks, Vicki. Turning to slide 12, which shows our continued growth. This is our fourth consecutive year of H1 underlying growth. We have delivered a net profit after tax of AUD 1.1 billion, up 7.1%, and earnings per share of AUD 0.089, up 6%. This growth has been driven by strong cost management and earnings growth across key products, despite higher D&A expense. While total income increased just under 1%, we reduced operating expenses by almost 2%, with our ongoing focus on cost discipline. This result follows the cost actions we announced in May 2024. EBITDA of AUD 4.2 billion was up 6% on a reported basis and 5.8% on an underlying basis. D&A expense of AUD 2.4 billion was up 7.6%. This reflects spectrum acquired in recent periods and the ongoing shift to shorter life assets.

Speaker #2: Our network and digital infrastructure leadership built over decades, means we are uniquely positioned to deliver Australia's digital future, both under connected future 30 and beyond.

Vicki Brady: Our network and digital infrastructure leadership, built over decades, means we are uniquely positioned to deliver Australia's digital future, both under Connected Future 30 and beyond. We will also remain disciplined on costs, capital allocation, and creating shareholder value. As we continue to invest in network resilience and growth, we will maintain our focus on productivity, simplification, and positive operating leverage. As I close, I want to acknowledge and thank our customers for their patience and understanding during our network outage in July. We do not take this for granted. I would also like to thank the Telstra team for everything they have delivered in the year and for the way they responded to the outage. It is never a situation we want to be in, but I want to recognize our team for the care and dedication shown and for the discipline applied to our investigation.

Speaker #1: This growth has been driven by strong cost management and earnings growth across key products, despite higher depreciation and amortization expense. While total income increased just under 1%, we reduced operating expenses by almost 2%, with.

Speaker #2: Five, we will also remain disciplined on costs, capital allocation, and creating shareholder value. As we continue to invest in network resilience and growth, we will maintain our focus on productivity, simplification, and positive operating leverage.

Speaker #2: Five, we will also remain disciplined on costs, capital allocation, and creating shareholder value. As we continue to invest in network resilience and growth, we will maintain.

Speaker #2: Our focus on productivity, simplification, and positive operating leverage. As I close, I want to acknowledge and thank our customers. For their patience and understanding, during our network outage in July.

Speaker #1: Our ongoing focus on cost discipline. This result follows the cost actions we announced in May 2024. EBITDA of 4.2 billion was up 6% on a reported basis, and 5.8% on an underlying basis.

Speaker #2: As I close, I want to acknowledge and thank our customers for their patience and understanding, during our network outage in July. We don't take this for granted.

Speaker #2: We don't take this for granted. I'd also like to thank the Telstra team, for everything they have delivered in the year, and for the way they responded to the outage.

Speaker #2: I'd also like to thank the Telstra team, for everything they have delivered in the year, and for the way they responded to the outage.

Speaker #1: Depreciation and amortization expense of 2.4 billion was up 7.6%. This reflects spectrum acquired in recent periods, and the ongoing shift to shorter life assets.

Speaker #2: It's never a situation we want to be in, but I want to recognize our team for the care and dedication shown, and for the discipline applied to our investigation.

Vicki Brady: We do not take this for granted. I would also like to thank the Telstra team for everything they have delivered in the year and for the way they responded to the outage. It is never a situation we want to be in, but I want to recognize our team for the care and dedication shown and for the discipline applied to our investigation.

Speaker #1: We expect the trend of higher DNA to continue in the coming years, as we execute the capital program. Except for a decrease in the second half of FY25 due to asset retirements in the first half.

Speaker #2: It will help us deliver a stronger and more resilient network for our customers. I'll now hand to Michael to take you through the results in detail.

Speaker #2: It will help us deliver a stronger, and more. Resilient network for our customers. I'll now hand to Michael to take you through the results in detail.

Michael Ackland: We expect the trend of higher D&A to continue in the coming years as we execute the capital program, except for a decrease in the H2 of FY25 due to asset retirements in the H1. Finance costs were broadly flat, as was tax, supported by an effective tax rate of 27.1%. We expect our effective tax rate will remain under 30% due to the mix of domestic, lower tax international earnings, and non-controlling interests not taxable for us. With stronger earnings, the board increased interim dividends to AUD 0.095 per share, up 5.6%. Turning to slide 13 on product profitability. We are seeing solid growth across nearly all our products, including mobile, fixed consumer and small business, Fixed Enterprise, International, and InfraCo. This was offset by a decline in fixed active wholesale and other.

Vicki Brady: It will help us deliver a stronger and more resilient network for our customers. I will now hand to Michael to take you through the results in detail.

Speaker #1: Finance costs were broadly flat, as was tax, supported by an effective tax rate of 27.1%. We expect our effective tax rate will remain under 30%, due to the mix of domestic, lower tax international earnings, and non-controlling interests not taxable for us.

Vicki Brady: It will help us deliver a stronger and more resilient network for our customers. I will now hand to Michael to take you through the results in detail.

Speaker #1: Thanks, Vicky. FY26 was a strong first year under connected future 30. We delivered growth in cash earnings, improved operating efficiency, and increased investments in our network and digital infrastructure.

Speaker #1: Thanks, Vicki. FY26 was a strong first year under connected future 30. We delivered growth in cash earnings, improved operating efficiency, and increased investments in our network and digital infrastructure.

Michael Ackland: Thanks, Vicki. FY2026 was a strong first year under Connected Future 30. We delivered growth in cash earnings, improved operating efficiency, and increased investments in our network and digital infrastructure. We also improved customer outcomes and delivered higher shareholder returns. Earnings per share increased 5% to AUD 0.199, supported by growth in key products and our AUD 1.25 billion share buyback program completed in the year, in addition to the AUD 750 million in the previous year. Across the group, total income and operating costs declined. Our focus on improving operating leverage resulted in deliberate actions to continue optimizing our Fixed Enterprise and International portfolios with divestments and product exits during the year. Our reported result included AUD 55 million of net non-cash impairments and M&A impacts that are excluded from the underlying results. Excluding these, underlying EBITDA after leases or underlying EBITDAL increased 4% to AUD 8.3 billion, in line with our guidance.

Michael Ackland: Thanks, Vicki. FY26 was a strong first year under Connected Future 30. We delivered growth in cash earnings, improved operating efficiency, and increased investments in our network and digital infrastructure. We also improved customer outcomes and delivered higher shareholder returns. Earnings per share increased 5% to AUD 0.199, supported by growth in key products and our AUD 1.25 billion share buyback program completed in the year, in addition to the AUD 750 million in the previous year. Across the group, total income and operating costs declined. Our focus on improving operating leverage resulted in deliberate actions to continue optimizing our Fixed Enterprise and International portfolios with divestments and product exits during the year. Our reported result included AUD 55 million of net non-cash impairments and M&A impacts that are excluded from the underlying results. Excluding these, underlying EBITDA after leases or underlying EBITDA increased 4% to AUD 8.3 billion, in line with our guidance.

Speaker #1: With stronger earnings, the board increased interim dividends to 9.5 cents per share, up 5.6%. Turning to slide 13, on product profitability. We've seen solid growth across nearly all our products.

Speaker #1: We also improved customer outcomes and delivered higher shareholder returns. Earnings per share, increased 5% to 19.9 cents, supported by growth in key products, and our 1.25 billion share buyback program, completed in the year in addition to the 750 million in the previous year.

Speaker #1: We also improved customer outcomes, and delivered higher shareholder returns. Earnings per share, increased 5% to 19.9 cents, supported by growth in key products, and our 1.25 billion share buyback program, completed in the year in addition to the 750 million in the previous year.

Speaker #1: Including mobile, fixed consumer and small business, fixed enterprise, international and infrastructure. This was offset by a decline in fixed active wholesale and other. Our international business achieved growth in wholesale and enterprise, while DigiSell Pacific benefited from the release of the remaining earn-out provision of 39 million.

Speaker #1: Across the group, total income and operating costs declined. Our focus on improving operating leverage, resulted in deliberate actions to continue optimizing our fixed enterprise and international portfolios, with divestments and product exits during the year.

Michael Ackland: Our focus on improving operating leverage resulted in deliberate actions to continue optimizing our Fixed Enterprise and International portfolios with divestments and product exits during the year. Our reported result included AUD 55 million of net non-cash impairments and M&A impacts that are excluded from the underlying results. Excluding these, underlying EBITDA after leases or underlying EBITDAL increased 4% to AUD 8.3 billion, in line with our guidance.

Michael Ackland: Our International business achieved growth in wholesale and enterprise, while Digicel Pacific benefited from the release of the remaining earn-out provision of AUD 39 million. Other EBITDA includes ongoing costs not allocated to products. The decline was due to a AUD 47 million gain from tower access agreements in the prior period. Other also includes negative FX impacts this half. Turning to each of our products, starting with mobile on slide 14. Mobile continues to demonstrate strong performance. Income rose 5% with service revenue and hardware growth, while EBITDA was up 4%. Mobile service revenue grew 3.1%, driven by post-paid, pre-paid, and wholesale handheld, partly offset by mobile broadband. Our handheld mobile user base grew 119,000 in the half, or 2.5% versus the prior corresponding period. This is a slower rate than recent years due to lower immigration and the one-off events like the 3G closure.

Michael Ackland: Across the group, total income and operating costs declined. Our focus on improving operating leverage resulted in deliberate actions to continue optimizing our Fixed Enterprise and International portfolios with divestments and product exits during the year. Our reported result included AUD 55 million of net non-cash impairments and M&A impacts that are excluded from the underlying results. Excluding these, underlying EBITDA after leases or underlying EBITDA increased 4% to AUD 8.3 billion, in line with our guidance.

Speaker #1: Other EBITDA includes ongoing costs not allocated to products. The decline was due to a 47 million dollar gain from tower access agreements in the prior period.

Speaker #1: Our reported result included 55 million of net non-cash impairments and M&A impacts that are excluded from the underlying results. Excluding these, underlying EBITDA after leases or underlying EBITDA, increased 4% to 8.3 billion in line with our guidance.

Speaker #1: Our reported result included 55 million of net non-cash impairments, and M&A impacts that are excluded from the underlying results. Excluding these, underlying EBITDA after leases or underlying EBITDA, increased 4% to 8.3 billion in line with our guidance.

Speaker #1: Other also includes negative FX impacts this half. Turning to each of our products, starting with mobile on slide 14. Mobile continues to demonstrate strong performance, income rose 5% with service revenue and hardware growth, while EBITDA was up 4%.

Speaker #1: When we look at these results after BAU capex, instead of depreciation and amortization or D&A, we see that cash EPS grew strongly, to 25.5 cents up 14%.

Speaker #1: When we look at these results after BAU capex, instead of depreciation and amortization or D&A, we see that cash EPS grew strongly, to 25.5 cents, up 14%.

Speaker #1: Mobile service revenue grew 3.1%, driven by postpaid, prepaid, and wholesale handheld, partly offset by mobile broadband. Our handheld mobile user base grew 119,000 in the half, or 2.5%, versus the prior corresponding period.

Michael Ackland: When we look at these results after BAU CapEx, instead of depreciation and amortization or D&A, we see that cash EPS grew strongly to AUD 0.255, up 14%. This is higher than EPS growth as BAU CapEx was broadly flat while D&A grew, and we expect D&A to continue to grow. As Vicki said, with stronger earnings, the board announced FY2026 dividends of AUD 0.21 per share, which are 90.5% franked. This is up 10.5% on a cash basis from last year and represents 82% of cash EPS. Turning now to cash earnings, where we delivered a strong result. Cash EBIT grew 8% to AUD 4.7 billion with growth in key products, strong cost management and BAU CapEx broadly flat. Finance costs grew 5% with higher lease costs, and tax expense grew with a lower effective tax rate. With that, cash earnings grew 12% to AUD 2.9 billion.

Speaker #1: This is higher than EPS growth, as BAU capex was broadly flat, while D&A grew, and we expect D&A to continue to grow. As Vicky said, with stronger earnings, the board announced FY26 dividends of 21 cents per share, which are 90.5% franked.

Speaker #1: This is higher than EPS growth, as BAU capex was broadly flat, while D&A grew. And we expect D&A to continue to grow. As Vicki said, with stronger earnings, the board announced FY26 dividends of 21 cents per share, which are 90.5% franked.

Michael Ackland: When we look at these results after BAU CapEx, instead of depreciation and amortization or D&A, we see that cash EPS grew strongly to AUD 0.255, up 14%. This is higher than EPS growth as BAU CapEx was broadly flat while D&A grew. We expect D&A to continue to grow. As Vicki said, with stronger earnings, the board announced FY26 dividends of AUD 0.21 per share, which are 90.5% franked. This is up 10.5% on a cash basis from last year and represents 82% of cash EPS. Turning now to cash earnings, where we delivered a strong result. Cash EBIT grew 8% to AUD 4.7 billion, with growth in key products, strong cost management and BAU CapEx broadly flat. Finance costs grew 5% with higher lease costs, and tax expense grew with a lower effective tax rate. With that, cash earnings grew 12% to AUD 2.9 billion.

Speaker #1: This is a slower rate than recent years, due to lower immigration and the one-off events like the 3G closure. Despite these headwinds, we've seen strong consumer handheld user growth and consumer branded churn has remained broadly stable.

Speaker #1: This is up 10.5% on a cash basis from last year, and represents EPS. Turning now to cash earnings, where we delivered a strong result.

Speaker #1: This is up 10.5% on a cash basis from last year, and represents 82% of cash EPS. Turning now to cash earnings, where we delivered a strong result.

Michael Ackland: Despite these headwinds, we have seen strong consumer handheld user growth and consumer-branded churn has remained broadly stable. We implemented price rises across our portfolio in the half. These changes enable us to maintain our ongoing investments in network coverage, differentiation, and customer experience. Pre-paid price changes introduced in late October 2024, supported a 6.5% lift in ARPU, while wholesale saw a 6% increase. Post-paid consumer and small business price increases contributed to ARPU growth. Reported ARPU reflected three and a half months of this benefit, as well as the enterprise ARPU drop in the H2 of FY24 that we spoke about at the full year. We expect the H2 to reflect the full six-month benefit of the price increases implemented in the H1.

Speaker #1: Cash EBIT grew 8% to 4.7 billion, with growth in key products, strong cost management, and BAU capex broadly flat. Finance costs grew 5%, with higher lease costs, and tax expense grew with a lower effective tax rate, with that cash earnings grew 12% to 2.9 billion.

Speaker #1: We implemented price risers across our portfolio in the half. These changes enable us to maintain our ongoing investments in network coverage, differentiation, and customer experience.

Speaker #1: Prepaid price changes, included introduced in late October 2024, supported a 6.5% lift in average revenue per user, or ARPU, while wholesale saw a 6% increase.

Speaker #1: We also invested a further 457 million in strategic investments, including the Aura network. Looking at our product EBITDA performance, we delivered growth across mobile, fixed CNSB, Infraco fixed, and Amplitel.

Speaker #1: Postpaid consumer and small business price increases contributed to ARPU growth, reported ARPU reflected 3.5 months of this benefit, as well as the enterprise ARPU drop in the second half of FY24 that we spoke about the full year.

Michael Ackland: We also invested a further AUD 457 million in strategic investments, including the Aura network. Looking at our product EBITDA performance, we delivered growth across mobile, Fixed CNSB, Infraco Fixed, and Amplitel. Fixed Enterprise and International results were partly impacted by the decisions to divest businesses and rationalize products, as well as FX headwinds. Other EBITDA also increased with favorable bond rate and FX movements, the absence of an equity loss which occurred in the prior period, and energy generation gains. Note that these product results include an additional AUD 92 million of redundancy costs this year compared to last year as we continue to simplify our business. Turning to our key products, starting with mobile, where we are continuing to win in market. Mobile service revenue grew 4.8% with growth across all products: postpaid, prepaid, wholesale handheld, mobile broadband, and IoT.

Michael Ackland: We also invested a further AUD 457 million in strategic investments, including the Aura Network. Looking at our product EBITDA performance, we delivered growth across Mobile, Fixed C&SB, InfraCo Fixed, and Amplitel. Fixed Enterprise and International results were partly impacted by the decisions to divest businesses and rationalize products, as well as FX headwinds. Other EBITDA also increased with favorable bond rate and FX movements, the absence of an equity loss which occurred in the prior period, and energy generation gains. Note that these product results include an additional AUD 92 million of redundancy costs this year compared to last year as we continue to simplify our business. Turning to our key products, starting with Mobile, where we are continuing to win in market. Mobile service revenue grew 4.8% with growth across all products: postpaid, prepaid, and wholesale handheld, mobile broadband, and IoT.

Speaker #1: Fixed enterprise and international results were partly impacted by the divestment the decisions to divest businesses, and rationalized products, as well as FX headwinds. Other EBITDA also increased, with favorable bond rate and FX movements, the absence of an equity loss, which occurred in the prior period, and energy generation gains.

Speaker #1: We expect the second half to reflect the full six-month benefit of the price increases implemented in the first half. Turning now to fixed consumer and small business.

Speaker #1: Where our disciplined execution focused on sustainable economics and a portfolio of technologies, supported EBITDA growth of 74% to 183 million. ARPU grew 6%, reflecting price risers that came into effect in November 2023 and July 2024, as well as positive product mix.

Speaker #1: Note that these product results include an additional 92 million of redundancy costs this year, compared to last year as we continue to simplify our business.

Michael Ackland: Turning now to fixed consumer and small business, where our disciplined execution, focus on sustainable economics, and a portfolio of technologies supported EBITDA growth of 74% to AUD 183 million. ARPU grew 6%, reflecting price rises that came into effect in November 2023 and July 2024, as well as positive product mix. However, continued SIO losses remain a challenge. Our portfolio of technologies includes our 5G fixed wireless offering, which we continue to scale with over 100,000 customers, up 24% this half, and our satellite home internet product. Turning to Fixed Enterprise on slide 16. These results reflect the initial actions we've taken to reset our Enterprise business, including actions on cost, enhanced commercial discipline and guardrails, and product exits aligned with our roadmap. We are focusing on profitable business closer to our core. Other areas may be exited or potentially divested.

Speaker #1: Turning to our key products, starting with mobile. Where we are continuing to win in market. Mobile service revenue grew 4.8%, with growth across all products.

Michael Ackland: Note that these product results include an additional AUD 92 million of redundancy costs this year compared to last year as we continue to simplify our business. Turning to our key products, starting with Mobile, where we are continuing to win in market. Mobile service revenue grew 4.8% with growth across all products: postpaid, prepaid, and wholesale handheld, mobile broadband, and IoT.

Speaker #1: However, continued sire losses remain a challenge. Our portfolio of technologies, includes our 5G fixed wireless offering, which we continue to scale, with over 100,000 customers, up 24% this half, and our satellite home internet product.

Speaker #1: Postpaid, prepaid, and wholesale handheld, mobile broadband, and IoT. Our focus continues to be on providing the best products in market, so that we can continue to deliver sustainable growth for our mobile business.

Michael Ackland: Our focus continues to be on providing the best products in market so that we can continue to deliver sustainable growth for our mobile business. Consistent with this, we delivered average revenue per user or ARPU growth across all categories, brands, and segments. Growth in users and ARPU was stronger at the lower price points. Overall, handheld ARPU grew nearly 4%, and our users grew over 270,000 or 1.9%. Mobile EBITDA grew 3% with service revenue growth partly offset by higher costs similar to the H1. Most of the increase in costs this year was driven by higher than usual remediation, compensation, and redundancy rather than underlying operating cost growth. Satellite and network-related costs represent a step-up in capability, supporting improved performance and new functionality. We expect ARPU next year to benefit from price changes implemented in May 2026. Turning to Fixed Consumer and Small Business.

Speaker #1: Turning to fixed enterprise on slide 16. These results reflect the initial actions we've taken to reset our enterprise business, including actions on cost, enhanced commercial discipline and guardrails, and product exits aligned with our roadmap.

Speaker #1: Consistent with this, we delivered average revenue per user or ARPU growth across all categories, brands, and segments, growth in users and ARPU was stronger, at the lower price points.

Speaker #1: Consistent with this, we delivered average revenue per user or ARPU growth across all categories, brands, and segments, growth in users and ARPU was stronger at the lower price points.

Michael Ackland: Our focus continues to be on providing the best products in market so that we can continue to deliver sustainable growth for our Mobile business. Consistent with this, we delivered average revenue per user or ARPU growth across all categories, brands, and segments. Growth in users and ARPU was stronger at the lower price points. Overall, handheld ARPU grew nearly 4%, and our users grew over 270,000 or 1.9%. Mobile EBITDA grew 3%, with service revenue growth partly offset by higher costs, similar to the H1. Most of the increase in cost this year was driven by higher than usual remediation, compensation, and redundancy rather than underlying operating cost growth. Satellite and network-related costs represent a step up in capability, supporting improved performance and new functionality. We expect ARPU next year to benefit from price changes implemented in May 2026. Turning to Fixed Consumer and Small Business.

Speaker #1: Overall, handheld ARPU grew nearly 4%, and our users grew over 270,000 or 1.9%. Mobile EBITDA grew 3%, with service revenue growth partly offset, by higher costs, similar to the first half.

Speaker #1: Overall, handheld ARPU grew nearly 4%, and our users grew over 270,000 or 1.9%. Mobile EBITDA grew 3%, with service revenue growth partly offset by higher costs similar to the first half.

Speaker #1: We are focusing on profitable business closer to our core, other areas may be exited or potentially divested. As Vicky said, we continue to reorganize our teams, which is resonating with customers as demonstrated by recent wins and recontracts.

Speaker #1: While these results show improvement, there is still lots more work to do to simplify our portfolio and execute against our roadmap. Data and connectivity, or DAC, remains impacted by ARPU compression and technology change.

Speaker #1: Most of the increase in costs this year was driven by higher than usual remediation compensation and redundancy, rather than underlying operating cost growth. Satellite and network related costs represent a step up in capability, supporting improved performance and new functionality.

Speaker #1: Most of the increase in costs this year was driven by higher than usual remediation compensation and redundancy rather than underlying operating cost growth. Satellite and network related costs represent a step up in capability, supporting improved performance and new functionality.

Michael Ackland: As Vicki Brady said, we continue to reorganize our teams, which is resonating with customers as demonstrated by recent wins and recontracts. While these results show improvement, there is still lots more work to do to simplify our portfolio and execute against our roadmap. Data and Connectivity, or DAC, remains impacted by ARPU compression and technology change. Income fell 8% and EBITDA dropped to AUD 42 million. In Network Applications and Services, or NAS, revenue was up slightly due to the contribution of prior year acquisitions. This was offset by ongoing structural decline in calling applications, lower sales in less profitable products consistent with our strategy, and a decline in professional services. Our cost reduction program supported earnings growth, with EBITDA of AUD 54 million up from AUD 17 million in the H1 of FY24.

Michael Ackland: As Vicki said, we continue to reorganize our teams, which is resonating with customers as demonstrated by recent wins and recontracts. While these results show improvement, there is still lots more work to do to simplify our portfolio and execute against our roadmap. Data and Connectivity, or DAC, remains impacted by ARPU compression and technology change. Income fell 8% and EBITDA dropped to AUD 42 million. In Network Applications and Services, or NAS, revenue was up slightly due to the contribution of prior year acquisitions. This was offset by ongoing structural decline in calling applications, lower sales in less profitable products consistent with our strategy, and a decline in professional services. Our cost reduction program supported earnings growth, with EBITDA of AUD 54 million up from AUD 17 million in the H1 of FY24.

Michael Ackland: Most of the increase in cost this year was driven by higher than usual remediation, compensation, and redundancy rather than underlying operating cost growth. Satellite and network-related costs represent a step up in capability, supporting improved performance and new functionality. We expect ARPU next year to benefit from price changes implemented in May 2026. Turning to Fixed Consumer and Small Business.

Speaker #1: Income fell 8%, and EBITDA dropped to 42 million. In network applications and services, or NAS, revenue was up slightly due to the contribution of prior year acquisitions.

Speaker #1: We expect ARPU next year to benefit from price rises, price changes, implemented in May 2026. Turning to fixed consumer and small business. While this remains a highly competitive product, and market growth is challenged, we grew EBITDA by 13.5% to 412 million, through strong cost management.

Speaker #1: This was offset by ongoing structural decline in calling applications, lower sales in less profitable products consistent with our strategy, and a decline in professional services.

Michael Ackland: While this remains a highly competitive product and market growth is challenged, we grew EBITDA by 13.5% to AUD 412 million, through strong cost management. During the year, we continued to invest in our product proposition, including the launch of our internet-only plans in November and our Smart Modem 4. More customers are on high-speed tiers and fiber. However, SIO losses continued, and this remains an ongoing focus. ARPU grew 2.6% through price rises and plan mix. However, margin declined with price rises not enough to offset SIO losses and wholesale input cost increases. In Fixed Enterprise, we have continued to make strong progress to reset this business and focus on core connectivity offerings. Our data and connectivity or DAC EBITDA declined to AUD 48 million with a reduction in cost not enough to offset the impact of ARPU compression and customer service rationalization, largely in the H1.

Speaker #1: Our cost reduction program supported earnings growth, with EBITDA of 54 million up from 17 million in the first half of FY24. In addition, growth was supported by the timing of BAU redundancies, which is expected to reverse in the second half.

Speaker #1: During the year, we continued to invest in our product proposition, including to launch our internet-only plans in November, and our smart modem 4. More customers are on a high speed tiers, and fiber.

Speaker #1: During the year, we continued to invest in our product proposition, including to launch of our internet only plans in November, and our smart modem 4.

Michael Ackland: While this remains a highly competitive product and market growth is challenged, we grew EBITDA by 13.5% to AUD 412 million through strong cost management. During the year, we continued to invest in our product proposition, including the launch of our internet-only plans in November and our Telstra Smart Modem 4. More customers are on high-speed tiers and fiber. However, SIO losses continued, and this remains an ongoing focus. ARPU grew 2.6% through price rises and plan mix. However, margin declined with price rises not enough to offset SIO losses and wholesale input cost increases. In Fixed Enterprise, we have continued to make strong progress to reset this business and focus on core connectivity offerings. Our data and connectivity or DAC EBITDA declined to AUD 48 million, with a reduction in cost not enough to offset the impact of ARPU compression and customer service rationalization, largely in the H1.

Speaker #1: More customers are on a high speed tiers, and fiber. However, SIO losses continued in this remains an ongoing focus. ARPU grew 2.6%, through price rises and plan mix.

Speaker #1: However, SIO losses continued and this remains an ongoing focus. ARPU grew 2.6%, through price rises and plan mix. However, margin declined, with price rises not enough to offset SIO losses, and wholesale input cost increases.

Speaker #1: Turning to international on slide 17. Wholesale and enterprise revenue continued to benefit from ongoing demand for our offshore infrastructure and subsea cable capacity. DAC grew 4% in cost and currency, offset by declines in legacy voice and NAS.

Michael Ackland: In addition, growth was supported by the timing of BAU redundancies, which is expected to reverse in the H2. Turning to International on slide 17. Wholesale and Enterprise revenue continued to benefit from ongoing demand for our offshore infrastructure and subsea cable capacity. DAC grew 4% in constant currency, offset by declines in legacy voice and NAS. Cost reduction and positive product mix saw EBITDA grow by 9% to AUD 194 million. Digicel Pacific reported EBITDA increased 8% to AUD 179 million, reflecting a release of the remaining earn-out provision. Excluding this and in constant currency, EBITDA was down 3%, with modest sequential growth from initiatives taken to address the challenging operating environment. Turning to Infrastructure on slide 18. Income from InfraCo Fixed grew 3.8%, with core infrastructure access up 4.7% due to demand from NBN Co, internal, and other customers for dark fiber and ducts.

Speaker #1: However, margin declined with price rises not enough to offset SIO losses, and wholesale input cost increases. In fixed enterprise, we've continued to make strong progress to reset this business and focus on core connectivity offerings.

Speaker #1: In fixed enterprise, we've continued to make strong progress to reset this business, and and focus on core connectivity offerings. Our data and connectivity, or DAC, EBITDA declined to 48 million, with a reduction in costs not enough to offset the impact of ARPU compression, and customer service rationalization.

Speaker #1: Cost reduction and positive product mix saw EBITDA grow by 9% to 194 million. DigiSell Pacific reported EBITDA increased 8% to reflecting a release of the remaining earn-out provision.

Speaker #1: Our data and connectivity, or DAC, EBITDA declined to 48 million, with a reduction in cost not enough to offset the impact of ARPU compression and customer service rationalization.

Speaker #1: Largely in the first half. Pleasingly, we've had a positive reception to our product refresh, which we continue to scale. In network applications and services, or NAS, we delivered a broadly flat EBITDA of 151 million.

Speaker #1: Excluding this, and in constant currency, EBITDA was down 3%, with modest sequential growth from initiatives taken to address the challenging operating environment. Turning to infrastructure on slide 18.

Michael Ackland: Pleasingly, we have had a positive reception to our product refresh, which we continue to scale. In network applications and services or NAS, we delivered a broadly flat EBITDA of AUD 151 million. This is despite lower revenue, which reflected deliberate decisions to focus on areas aligned to our strategy, divestments, and product exits. In addition, the ongoing decline in calling products continued. Our reshaping of this business and focus on portfolio management is ongoing. The sale of Alliance Automation and MTData completed in FY26, and the sale of 75% of the Versent Group is expected to close in the H1 of FY27. Together, these businesses contributed AUD 430 million of revenue in FY26. In our international wholesale and enterprise business, we have made significant progress to refocus on digital infrastructure. We announced the exit of selected NAS products, sold our wholesale voice business and London hosting center.

Michael Ackland: Pleasingly, we have had a positive reception to our product refresh, which we continue to scale. In Network Applications and Services or NAS, we delivered a broadly flat EBITDA of AUD 151 million. This is despite lower revenue, which reflected deliberate decisions to focus on areas aligned to our strategy, divestments, and product exits. In addition, the ongoing decline in calling products continued. Our reshaping of this business and focus on portfolio management is ongoing. The sale of Alliance Automation and MTData completed in FY26, and the sale of 75% of the Versent Group is expected to close in the H1 of FY27. Together, these businesses contributed AUD 430 million of revenue in FY26. In our International Wholesale and Enterprise business, we have made significant progress to refocus on digital infrastructure. We announced the exit of selected NAS products, sold our wholesale voice business and London hosting center.

Speaker #1: This is despite lower revenue, which reflected deliberate decisions to focus on areas aligned to our strategy, divestments, and product exits. In addition, the ongoing decline in calling products continued.

Speaker #1: Income from Infraco fixed grew 3.8%, with core infrastructure access up 4.7% due to demand from MBNCo, internal, and other customers for dark fiber and DACs.

Speaker #1: Our reshaping of this business and focus on portfolio management is ongoing. The sale of Alliance Automation and MT Data completed in FY26, and the sale of 75% of diversant group is expected to close in the first half of FY27.

Speaker #1: Our reshaping of this business and focus on portfolio management is ongoing. The sale of Alliance Automation and MT Data completed in FY26, and the sale of 75% of the Vercent Group is expected to close in the first half of FY27.

Speaker #1: Core access EBITDA grew 8.3%, reflecting lower operating and maintenance costs and operating leverage. Amplitele continued to benefit from strong demand for new towers and new signings.

Speaker #1: Together, these businesses contributed 430 million of revenue, in FY26. And our international wholesale and enterprise business, we've made significant progress to focus refocus on digital infrastructure.

Michael Ackland: Core access EBITDA grew 8.3%, reflecting lower operating and maintenance costs and operating leverage. Amplitel continued to benefit from strong demand for new towers and new signings. EBITDA grew 5.6%, excluding the gains from customer contracts in the prior period. Regarding our strategic investments, including the intercity fiber network, we expect to spend AUD 1.6 billion above BAU CapEx across FY23 to FY27. We are responding to delays and cost pressures, and we'll optimize the rollout for customer demand by adjusting where appropriate, routes, phasing, and kilometers deployed. We expect to be at the low end of our strategic investment guidance in FY24, with spend shifting into FY26 and FY27. We are deploying significant capacity, which we expect will support strong revenue growth from growing demand and increase utilization over the life of this 30-year asset.

Speaker #1: EBITDA grew 5.6%, excluding the gains from customer contracts in the prior period. Regarding our strategic investments, including the inner-city fiber network, we expect to spend 1.6 billion above BAU capex across FY23 to FY27.

Speaker #1: We announced the exit of selected NAS products, sold our wholesale voice business, and London Hosting Centre. In addition, after the 30th of June, we agreed to sell our Hong Kong property assets, with an estimated US dollar 60 million gain, which will be excluded from our underlying result in FY27.

Speaker #1: We are responding to delays and cost pressures, and will optimize the rollout for customer demand by adjusting where appropriate, routes, phasing, and kilometers deployed.

Michael Ackland: In addition, after 30 June, we agreed to sell our Hong Kong property assets, with an estimated USD 60 million gain, which will be excluded from our underlying result in FY27. We have also reviewed our portfolio and recognized non-cash impairments, which are excluded from underlying EBITDA. In addition, we had a number of benefits called out on this slide, totaling AUD 33 million this year. Normalizing for these items both this year and last year, as well as FX, EBITDA declined 9%. This is due to the sale of the wholesale voice business, higher off-net product mix, partly offset by strong cost management. We are continuing to position the business to benefit from the increased demand in digital infrastructure. During the year, we acquired capacity on several cable systems and have already on-sold over half of this capacity to customers, including hyperscalers.

Michael Ackland: In addition, after 30 June, we agreed to sell our Hong Kong property assets, with an estimated US$60 million gain, which will be excluded from our underlying result in FY27. We have also reviewed our portfolio and recognized non-cash impairments, which are excluded from underlying EBITDA. In addition, we had a number of benefits called out on this slide totaling AUD 33 million this year. Normalizing for these items both this year and last year, as well as FX, EBITDA declined 9%. This is due to the sale of the wholesale voice business, higher off-net product mix partly offset by strong cost management. We are continuing to position the business to benefit from the increased demand in digital infrastructure. During the year, we acquired capacity on several cable systems and have already on-sold over half of this capacity to customers, including hyperscalers.

Speaker #1: We expect to be at the low end of our strategic investment guidance in FY24, with spend shifting into FY26 and FY27. We are deploying significant capacity, which we expect will support strong revenue growth from growing demand and increased this 30-year asset.

Speaker #1: We've also reviewed our portfolio and recognized non-cash impairments, which were excluded from underlying EBITDA. In addition, we had a number of benefits called out on this slide, totaling 33 million this year.

Speaker #1: Normalizing for these items, both this year and last year, as well as FX, EBITDA declined 9%. This is due to the sale of the wholesale voice business, higher off-net product mix, partly offset by strong cost business to benefit from the increased demand in digital infrastructure.

Speaker #1: The timing of reaching 200 million of annual revenue will depend on routes, phasing, and types of customer contracts. Turning to operating costs on slide 20.

Speaker #1: We're continuing to position the business to benefit from the increased demand in digital infrastructure. During the year, we acquired capacity on several cable systems, and have already on sold over half of this capacity to customers, including hyperscalers.

Michael Ackland: The timing of reaching AUD 200 million of annual revenue will depend on routes, phasing, and types of customer contracts. Turning to operating costs on Slide 20. Our strong focus on productivity resulted in an overall reduction in cost. This included AUD 161 million reduction in fixed cost core. This was driven by reductions in our workforce, partly offset by salary increases, reductions in indirect labor, lower commissions, and license fee, IT vendor rationalization, and other productivity more than offsetting inflation. Business as usual redundancies were also higher in the prior period. This brings our cumulative reduction in fixed cost core to AUD 283 million since FY22. We remain on track to achieve AUD 350 million by the end of this financial year. We expect further productivity gains over the medium term. Our free cash flow after leases, before strategic investment, increased 7.6% to AUD 1.1 billion, as shown on Slide 21.

Speaker #1: During the year, we acquired capacity on several cable systems and have already on sold over half of this capacity to customers, including hyperscalers. We're assessing further value accretive investments.

Speaker #1: Our strong focus on productivity resulted in an overall reduction in cost. This included 161 million reduction in fixed cost core, this was driven by a reductions in our workforce, partly offset by salary increases, reductions in indirect labor, lower commissions, and license fee, IT vendor rationalization, and other productivity more than offsetting inflation.

Speaker #1: We're assessing further value recruiting investments. Although new investments will take time to translate into earnings growth. Turning to Digicell Pacific. And while EBITDA declined 10% to 293 million in Australian dollars, largely due to FX impacts on a normalized constant currency basis, EBITDA grew 4%.

Speaker #1: Although new investments will take time to translate into earnings growth. Turning to Digicell Pacific. And while EBITDA declined 10% to 293 million in Australian dollars, largely due to FX impacts on a normalized constant currency basis, EBITDA grew 4%.

Michael Ackland: During the year, we acquired capacity on several cable systems and have already on-sold over half of this capacity to customers, including hyperscalers.

Michael Ackland: We are assessing further value-accretive investments, although new investments will take time to translate into earnings growth. Turning to Digicel Pacific, while EBITDA declined 10% to AUD 293 million, largely due to FX impacts, on a normalized constant currency basis, EBITDA grew 4%. Despite operating challenges in the H1, the recovery in trading momentum late in the H2 was pleasing. Our infrastructure business continues to grow, supported by rising demand in the AI era. For the year, Infraco Fixed Income grew 2.5% to AUD 2.8 billion, with growth from NBN receipts in addition to copper asset sales, ground stations, and dark fiber. This was partly offset by lower commercial and recoverable works and internal revenue, reflecting efficiencies and lower power recharge.

Michael Ackland: We are assessing further value-accretive investments, although new investments will take time to translate into earnings growth. Turning to Digicel Pacific, and while EBITDA declined 10% to AUD 293 million, largely due to FX impacts on a normalized constant currency basis, EBITDA grew 4%. Despite operating challenges in the first half, the recovery in trading momentum late in the second half was pleasing. Our infrastructure business continues to grow, supported by rising demand in the AI era. For the year, InfraCo Fixed Income grew 2.5% to AUD 2.8 billion with growth from NBN receipts, in addition to copper asset sales, ground stations, and dark fiber. This was partly offset by lower commercial and recoverable works and internal revenue, reflecting efficiencies and lower power recharge.

Speaker #1: Business-as-usual redundancies were also higher in the prior period. This brings our cumulative reduction in fixed cost core to 283 million since FY22. We remain on track to achieve 350 million by the end of this financial year.

Speaker #1: Despite operating challenges in the first half, the recovery in trading momentum late in the second half was pleasing. Our infrastructure business continues to grow.

Speaker #1: Supported by rising demand in the AI era. For the year, Infraco fixed income grew 2.5% to 2.8 billion, with growth from MBN receipts, in addition to copper asset sales, ground stations, and dark fiber.

Speaker #1: Supported by rising demand in the AI era. For the year, Infraco fixed income grew 2.5% to 2.8 billion, with growth from MBN receipts in addition to copper asset sales ground stations and dark fiber.

Speaker #1: We expect further productivity gains over the medium term. Our free cash flow after leases, before strategic investment, increased 7.6% to 1.1 billion and shown on slide 21.

Speaker #1: This was partly offset by lower commercial and recoverable works, and internal revenue reflecting efficiencies and lower power recharge. Vicki also announced organizational changes to bring together our Infraco international and field teams, under Telstra Digital Infrastructure.

Speaker #1: This was partly offset by lower commercial and recoverable works, and internal revenue reflecting efficiencies and lower power recharge. VICI also announced organizational changes to bring together our Infraco international and field teams, under Telstra Digital Infrastructure.

Speaker #1: Growth came from higher underlying EBITDA, flat capex and leases, and lower tax paid. We also delivered this growth while absorbing around 300 million in restructuring costs consistent with our guidance.

Michael Ackland: Growth came from higher underlying EBITDA, flat CapEx and leases, and lower tax paid. We also delivered this growth while absorbing around AUD 300 million in restructuring costs consistent with our guidance. Working capital and other reflects these restructuring costs. Normal H1, H2 seasonality, including an increase in inventory and growth in handset receivables on higher hardware sales. We expect working capital reversal to support free cash flow in the H2. Slide 22 shows our strong capital position and liquidity. Net debt is stable at 1.9 times, as higher debt was offset by EBITDA growth. Our balance sheet is strong, and we remain committed to an A band credit rating. This has enabled us to announce an on-market share buyback of up to AUD 750 million, as Vicki outlined. We will continuously evaluate the feasibility of future buybacks within the context of our strategy and capital management framework.

Speaker #1: Working capital and other reflects these restructuring costs. Normal first half, second half seasonality including an increase in inventory and growth in handset receivables on higher hardware sales.

Michael Ackland: Vicki also announced organizational changes to bring together our Infraco international and field teams under Telstra Digital Infrastructure to create one trusted partner for our domestic and international customers to access our infrastructure assets. Following these changes and higher associated redundancy costs, EBITDA grew 3.3% to AUD 1.8 billion. Amplitel, our mobile towers business, continued to benefit from ongoing demand, partly offset by MOCN-related impacts. EBITDA grew 3.9% to AUD 323 million, and we expect ongoing growth from contractual escalations and non-mobile operator demand. Turning now to strategic investments, including our terrestrial fiber Aura network. Over recent months, momentum has continued to build, with a significant increase in the sales pipeline and more customer signings. This step up in customer activity reflects the progressive rollout of service-ready routes. As Vicki said, we do expect total strategic investment to FY28 of around AUD 1.8 billion, up from AUD 1.6 billion.

Speaker #1: To create one trusted partner for our domestic and international customers, to access our infrastructure assets. Following these changes, and higher associated redundancy costs, EBITDA grew 3.3% to 1.8 billion.

Speaker #1: To create one trusted partner for our domestic and international customers to access our infrastructure assets. Following these changes, and higher associated redundancy cost, EBITDA grew 3.3% to 1.8 billion.

Michael Ackland: Vicki also announced organizational changes to bring together our InfraCo international and field teams under Telstra Digital Infrastructure to create one trusted partner for our domestic and international customers to access our infrastructure assets. Following these changes and higher associated redundancy costs, EBITDA grew 3.3% to AUD 1.8 billion. Amplitel, our mobile towers business, continued to benefit from ongoing demand, partly offset by MOCN-related impacts. EBITDA grew 3.9% to AUD 323 million, and we expect ongoing growth from contractual escalations and non-mobile operator demand. Turning now to strategic investments, including our terrestrial fiber Aura Network. Over recent months, momentum has continued to build with a significant increase in the sales pipeline and more customer signings. This step up in customer activity reflects the progressive rollout of service-ready routes. As Vicki said, we do expect total strategic investment to FY28 of around AUD 1.8 billion, up from AUD 1.6 billion.

Speaker #1: We expect working capital reversal to support free cash flow in the second half. Slide 22 shows our strong capital position and liquidity. Net debt is stable at 1.9 times, as higher debt was offset by EBITDA growth.

Speaker #1: Amplitel, our mobile towers business, continued to benefit from ongoing demand. Partly offset by Mocken related impacts. EBITDA grew 3.9% to 120 to 323 million, and we expected and we expect ongoing growth from contractual escalations, and non-mobile operator demand.

Speaker #1: Amplitel, our mobile towers business, continued to benefit from ongoing demand, partly offset by mocking related impacts. EBITDA grew 3.9% to 120 to 323 million, and we expected and we expect ongoing growth from contractual escalations and non-mobile operator demand.

Speaker #1: Our balance sheet is strong, and we remain committed to an A-band credit rating. This is enabled us to announce an on-market share buyback of up to 750 million as Vicky outlined.

Speaker #1: We will continuously evaluate the feasibility of future buybacks, within the context of our strategy and capital management framework. We have also improved return on invested capital, compared to the prior period.

Speaker #1: Turning now to strategic investments. Including our terrestrial fiber or a network. Over recent months, momentum has continued to build, with a significant increase in the sales pipeline and more customer signings.

Speaker #1: Turning now to strategic investments. Including our terrestrial fiber aura network. Over recent months, momentum has continued to build, with a significant increase in the sales pipeline and more customer signings.

Speaker #1: And taken actions to demonstrate our focus on capital discipline and active portfolio management in the half. Finally, turning to guidance for FY25 on slide 23, which is unchanged.

Speaker #1: This step up in customer activity reflects the progressive rollout of service ready routes. As Vicki said, we do expect total strategic investment to FY28 of around 1.8 billion, up from 1.6 billion.

Speaker #1: This step up in customer activity reflects the progressive rollout of service ready routes. As VICI said, we do expect total strategic investment to FY28 of around 1.8 billion, up from 1.6 billion.

Michael Ackland: Over recent months, momentum has continued to build with a significant increase in the sales pipeline and more customer signings. This step up in customer activity reflects the progressive rollout of service-ready routes. As Vicki said, we do expect total strategic investment to FY28 of around AUD 1.8 billion, up from AUD 1.6 billion.

Michael Ackland: We have also improved return on invested capital compared to the prior period, and taken actions to demonstrate our focus on capital discipline and active portfolio management in the half. Finally, turning to guidance for FY25 on Slide 23, which is unchanged. In summary, our performance continues to benefit from the investments we are making in productivity, our network, and customer experience, while our key mobile and digital infrastructure assets benefit from long-term demand drivers. Our focus is on increasing operating cash generation to support our ambition to grow the dividend over time. I am pleased we have done this for a third consecutive year in the H1, and that our financial strength and outlook has also enabled us to announce a share buyback. Finally, I would like to thank the Telstra team for their ongoing efforts in delivering value for customers, for the community, and for our shareholders.

Speaker #1: In summary, our performance continues to benefit from the investments we're making in productivity, our network, and customer experience, while our key mobile and digital infrastructure assets benefit from long-term demand drivers.

Speaker #1: This reflects sustained inflationary pressures, as well as ongoing project specific factors, including site and route conditions. We remain disciplined in the delivery of this long-lived asset, and will continue to apply the learnings we've gained from successfully completing more than half the build to date.

Speaker #1: This reflects sustained inflationary pressures, as well as ongoing project specific factors, including site and route conditions. We remain disciplined in the delivery of this long life asset, and will continue to apply the learnings we've gained from successfully completing more than half the build to date.

Michael Ackland: This reflects sustained inflationary pressures as well as ongoing project-specific factors, including site and route conditions. We remain disciplined in the delivery of this long-lived asset and will continue to apply the learnings we have gained from successfully completing more than half the build to date. Importantly, our strong progress and growing pipeline reinforce our confidence in delivering our mid-teens IRR target. Our focus on operating efficiency continues. The reduction in operating costs reflects portfolio simplification, productivity improvements, and continued cost discipline. Around half of the cost reduction this year was a result of divestments and product rationalization in enterprise and international. At the same time, we continued to deliver efficiencies across labor, technology, and other operating expenses. Our investments in technology are translating into efficiencies across customer service, retail, and support functions. As Vicki outlined, these initiatives are also helping improve customer outcomes.

Speaker #1: Our focus is on increasing operating cash generation to support our ambition to grow the dividend over time. I am pleased we've done this for a third consecutive year in the first half, and that our financial strength and outlook has also enabled us to announce a share buyback.

Speaker #1: Importantly, our strong progress and growing pipeline reinforce our confidence in delivering mid-teams our mid-teams IRR target. Our focus on operating efficiency continues. The reduction in operating costs reflects portfolio simplification, productivity improvements, and continued cost discipline.

Speaker #1: Importantly, our strong progress and growing pipeline reinforce our confidence in delivering mid-teens our mid-teens IRR target. Our focus on operating efficiency continues. The reduction in operating costs reflects portfolio simplification, productivity improvements, and continued cost discipline.

Speaker #1: Finally, I'd like to thank the Telstra team for their ongoing efforts in delivering value for customers, for the community, and for our shareholders. I'll now hand to Nathan, for Q&A.

Speaker #1: Thank you.

Speaker #1: Around half of the cost reduction this year was a result of divestments, and product rationalization in enterprise and international. At the same time, we continue to deliver efficiencies across labor, technology, and other operating expenses.

Speaker #1: Around half of the cost reduction this year was a result of divestments and product rationalization in enterprise and international. At the same time, we continue to deliver efficiencies across labor, technology, and other operating expenses.

Speaker #2: Thank you, Michael. So we will start with questions from investors and analysts. And I should note, on the call today, we also have Brendan Reilly, CEO of Infraco; Brad, who runs our consumer business, as well as Oliver, who runs our enterprise business.

Michael Ackland: The reduction in operating costs reflects portfolio simplification, productivity improvements, and continued cost discipline. Around half of the cost reduction this year was a result of divestments and product rationalization in enterprise and international. At the same time, we continued to deliver efficiencies across labor, technology, and other operating expenses. Our investments in technology are translating into efficiencies across customer service, retail, and support functions. As Vicki outlined, these initiatives are also helping improve customer outcomes.

Michael Ackland: I will now hand to Nathan for Q&A. Thank you.

Speaker #1: Our investments in technology are translating into efficiencies across customer service, retail, and support functions. And as Vicki outlined, these initiatives are also helping improve customer outcomes.

Speaker #1: Our investments in technology are translating into efficiencies across customer service, retail, and support functions. And as VICI outlined, these initiatives are also helping improve customer outcomes.

Nathan Burley: Thank you, Michael. We will start with questions from investors and analysts. I should note on the call today, we also have Brendon Riley, CEO of InfraCo, Brad, who runs our consumer business, as well as Oliver, who runs our Enterprise business. Our first question is from Eric Choi from Barrenjoey. Go ahead, Eric.

Speaker #1: As we further simplify the business and scale digital capabilities, we see ongoing opportunities to improve productivity and customer outcomes, as well as supporting earnings growth.

Speaker #2: Our first question is from Eric Choi from Barron-Joey. Go ahead, Eric.

Michael Ackland: As we further simplify the business and scale digital capabilities, we see ongoing opportunities to improve productivity and customer outcomes, as well as supporting earnings growth. Lower sales costs were also a result of lower volumes in Fixed CNSB. Fixed costs were AUD 129 million lower, with lower labor costs despite higher redundancies and customer remediation and compensation costs. Together with other productivity initiatives, cash EBIT costs reduced by around AUD 530 million, enabling us to deliver positive operating leverage despite inflationary pressures and increased network investment. As Vicki said, stronger business performance enables us to invest in our future. As our profitability has grown, so too has our investment in networks and digital infrastructure, which was around AUD 800 million higher in FY26 than it was in FY21. We maintained our strong capital position and liquidity supported by growing cash flow.

Speaker #3: Hi, Nathan. Thanks very much. And hey, team. Can I please ask one on mobile, one on cash EPS, one on capital management? Just on mobile, how do we think about mobile weeks going forward?

Speaker #1: Lower sales costs were also a result of lower volumes in fixed CNSB. Fixed costs were 129 million lower, with lower labor costs, despite higher redundancies and customer remediation and customer and compensation costs.

Speaker #1: Lower sales costs were also a result of lower volumes in fixed CNSB. Fixed costs were 129 million lower, with lower labor costs despite higher redundancies and customer remediation and customer and compensation costs.

Michael Ackland: As we further simplify the business and scale digital capabilities, we see ongoing opportunities to improve productivity and customer outcomes, as well as supporting earnings growth. Lower sales costs were also a result of lower volumes in Fixed C&SB. Fixed costs were AUD 129 million lower, with lower labor costs despite higher redundancies and customer remediation and compensation costs. Together with other productivity initiatives, cash EBIT costs reduced by around AUD 530 million, enabling us to deliver positive operating leverage despite inflationary pressures and increased network investment. As Vicki said, stronger business performance enables us to invest in our future. As our profitability has grown, so too has our investment in networks and digital infrastructure, which was around AUD 800 million higher in FY26 than it was in FY21. We maintained our strong capital position and liquidity supported by growing cash flow.

Speaker #3: Because you're investing an extra 800 million in the IC now, and that's on top of the spectrum you've already spent, and you're going to need to spend more, presumably, in CY28 as well.

Speaker #1: Together, other productivity initiatives together with other productivity initiatives cash EBIT costs reduced by around 530 million, enabling us to deliver positive operating leverage despite inflationary pressures and increased network investment.

Eric Choi: Hey, Nathan. Thanks very much. Hey, team. Can I please ask one on mobile, one on cash EPS, one on capital management? On mobile, how do we think about mobile ROIC going forward? Because you are investing an extra AUD 800 million in the ICF now, that is on top of the spectrum you have already spent, and you are going to need to spend more, presumably, in CY28 as well. Can we infer that you would need more mobile service growth from here to maintain that mobile ROIC? Obviously, sub growth has slowed as well. That kind of implies this needs to come from mobile ARPU. Second question, cash EPS. Slide 44 is really useful. Thanks, Michael. That shows that cash EPS is above accounting EPS, and that gap is actually widening.

Speaker #3: So can we infer that you will need more mobile service growth from here to maintain that mobile ROIC? And obviously, subgrowth is slowed as well.

Speaker #1: As Vicki said, stronger business performance enables us to invest in our future. As our profitability has grown, so too has our investment in networks and digital infrastructure, which was around 800 million higher in FY26 than it was in FY21.

Speaker #1: As VICI said, stronger business performance enables us to invest in our future. As our profitability has grown, so too has our investment in networks and digital infrastructure, which was around 800 million higher in FY26 than it was in FY21.

Speaker #3: So that kind of implies this needs to come from mobile APUs. Second question, cash EPS, slide 44 is really useful. So thanks, Michael. That shows that cash EPS is above accounting EPS, and that that gap is actually just widening.

Michael Ackland: As Vicki said, stronger business performance enables us to invest in our future. As our profitability has grown, so too has our investment in networks and digital infrastructure, which was around AUD 800 million higher in FY26 than it was in FY21. We maintained our strong capital position and liquidity supported by growing cash flow.

Speaker #1: We maintained our strong capital position, and liquidity supported by growing cash flow. On an underlying basis, net debt remained stable at 1.9 times, despite the completion of our buyback as higher debt was offset by EBITDA growth.

Speaker #1: We maintained our strong capital position and liquidity supported by growing cash flow. On an underlying basis, net debt remained stable at 1.9 times, despite the completion of our buyback as higher debt was offset by EBITDA growth.

Speaker #3: So I'm just thinking, does that mean given you've pointed this out sort of more explicitly, does that mean management and the board could adjust your capital management framework to weight it more towards cash EPS?

Michael Ackland: On an underlying basis, net debt remains stable at 1.9 times despite the completion of our buyback, as higher debt was offset by EBITDA growth. We reduced our average cost of debt to 4.8% and grew underlying return on invested capital to 9%. Our balance sheet is strong, and we remain committed to an A band credit rating. This has enabled our continued investment in our business as well as our buyback program, with the announcement today of a further up to AUD 1 billion on-market share buyback. Turning now to guidance, the basis of which is shown on this slide. We expect continued underlying EBITDA growth to between AUD 8.5 billion to AUD 8.8 billion, BAU CapEx of AUD 3.35 billion to AUD 3.65 billion, with a lift in network investment supporting leadership and ongoing growth.

Speaker #1: We reduced our average cost of debt, to 4.8%, and grew underlying return on invested capital to 9%. Our balance sheet is strong, and we remain committed to an A band credit rating.

Speaker #3: And is there a scenario where you're prepared to do a little bit less than 100% franking? And then just lastly, on capital management, if you look at two things, so if you look at what AT&T is doing overseas, I think they earmarked 40% of their excess free cash flow over the next three years for buybacks.

Michael Ackland: On an underlying basis, net debt remained stable at 1.9 times despite the completion of our buyback, as higher debt was offset by EBITDA growth. We reduced our average cost of debt to 4.8% and grew underlying return on invested capital to 9%. Our balance sheet is strong, and we remain committed to an A-band credit rating. This has enabled our continued investment in our business as well as our buyback program with the announcement today of a further up to AUD 1 billion on-market share buyback. Turning now to guidance, the basis of which is shown on this slide. We expect continued underlying EBITDA growth to between AUD 8.5 to AUD 8.8 billion, BAU CapEx of AUD 3.35 to AUD 3.65 billion, with a lift in network investment supporting leadership and ongoing growth.

Eric Choi: I am just thinking, given you have pointed this out more explicitly, does that mean management and the board could adjust your capital management framework to weight it more towards cash EPS? Is there a scenario where you are prepared to do a little bit less than 100% franking? Lastly on capital management, if you look at two things. If you look at what AT&T is doing overseas, I think they earmarked 40% of their excess free cash flow over the next three years for buybacks. If I look at your capital, your gearing headroom of 1.5 to 2.0, your headroom to that is only going to grow with D&A growth plus make some asset sales.

Speaker #1: This has enabled our continued investment in our business, as well as our buyback program, with the announcement today of a further up to 1 billion on market share buyback.

Speaker #3: And if I look at your capital you're sort of gearing headroom of 1.5 to 2.0, your headroom to that's only going to grow some asset sales.

Speaker #1: Turning now to guidance, the basis of which is shown on this slide. We expect continued underlying EBITDA growth to between 8.5 to 8.8 billion, BAU capex of 3.35 to 3.65 billion, with a lift in network investment supporting leadership and ongoing growth.

Speaker #1: Turning now to guidance, the basis of which is shown on this slide. We expect continued underlying EBITDA growth to between 8.5 to 8.8 billion, BOU capex of 3.35 to 3.65 billion, with a lift in network investment supporting leadership and ongoing growth.

Speaker #3: So putting that all together, I just wonder what AT&T could buybacks via more insuring part of your capital management framework now and if that's the case, I guess that would be handy, yes, growth beyond FY26 as well.

Speaker #3: So thanks very much.

Speaker #1: Our cash EBIT is expected to be between 4.75 and 4.95 billion, and strategic investment is expected to be between 0.2 and 0.3 billion. In short, with continued to deliver growth and value in FY26, in accordance with our strategy.

Speaker #2: Thanks, Eric. And good to have you online. Some great questions. I know Michael is particularly happy that you like that additional slide on cash EPS.

Eric Choi: Putting that all together, I just wonder, similar to AT&T, could buybacks be a more enduring part of your capital management framework now? If that is the case, I guess that would enhance EPS growth beyond FY26 as well. Thanks. Thanks very much.

Michael Ackland: Our cash EBIT is expected to be between AUD 4.75 billion and AUD 4.95 billion, and strategic investment is expected to be between AUD 0.2 billion and AUD 0.3 billion. In short, we have continued to deliver growth and value in FY26 in accordance with our strategy. With growth in core business cash flow, including 12% growth in cash earnings, portfolio and investment management, where we continue to execute and invest in line with our strategy and disciplined capital management. We remain confident in our ability to benefit from the critical role of connectivity and our strategy to achieve our FY30 financial ambitions. I would finally like to thank the Telstra team for their ongoing efforts in delivering value for our customers, the community, and our shareholders. I will now hand back to Nathan for Q&A. Thank you.

Speaker #2: It's also one of his favorites. So I know he's pleased about that call out. I might make a few comments. Why don't we take them one by one, and I'm sure Michael will likely want to add as well.

Michael Ackland: Our cash EBIT is expected to be between AUD 4.75 and AUD 4.95 billion, and strategic investment is expected to be between AUD 0.2 and AUD 0.3 billion. In short, we have continued to deliver growth and value in FY26 in accordance with our strategy. With growth in core business cash flow, including 12% growth in cash earnings, portfolio and investment management, where we continue to execute and invest in line with our strategy and disciplined capital management. We remain confident in our ability to benefit from the critical role of connectivity and our strategy to achieve our FY30 financial ambitions. I would finally like to thank the Telstra team for their ongoing efforts in delivering value for our customers, the community, and our shareholders. I will now hand back to Nathan for Q&A. Thank you.

Speaker #1: With growth in core business cash flow, including 12% growth in cash earnings, portfolio and investment management will be continued to execute and invest in line with our strategy, and discipline capital management.

Vicki Brady: Thanks, Eric, and good to have you online. Some great questions. I know Michael is particularly happy that you like that additional slide on cash EPS. It is also one of his favorites, so I know he is pleased about that call-out. I might make a few comments. Why do not we take them one by one, and I am sure Michael will likely want to add as well. So if we start with mobile. As you can see today, we have announced allocating more of the BAU CapEx, that AUD 800 million over the next 4 years, into our mobile network to absolutely cement and extend that leadership position in our 5G network. It is such a core part of our business. As we have spoken about, our ambition and aim is absolutely to increase the overall ROIC of the business. Mobile is a key component of it.

Speaker #2: So if we start with mobile. As you can see today, we have announced allocating more of the BAU capex, that 800 million, over the next four years, into our mobile network to absolutely cement and extend that leadership position in our 5G network.

Speaker #1: We remain confident in our ability to benefit from the critical role of connectivity and our strategy to achieve our FY30 financial ambitions. I'd finally like to thank the Telstra team for their ongoing efforts in delivering value for our customers, the community, and our shareholders.

Speaker #2: It's such a core part of our business. As we've spoken about, our ambition and aim is absolutely to increase the overall ROIC of the business.

Speaker #1: And I'll now hand back to Nathan for Q&A. Thank you.

Speaker #2: Mobile is a key component of it. And from my perspective, I'm really confident in our mobile business. It is in a real leadership position in terms of the network, in a leadership position in terms of the overall experience we provide and the look at the inroads across all elements of customer experience.

Speaker #2: Thanks, Michael. We'll now start an investor and analyst Q&A. In addition to Vicki and Michael, we have a number of other Telstra Group executives on the call today.

Speaker #2: Thanks, Michael. We'll now start an investor and analyst Q&A. In addition to VICI and Michael, we have a number of other Telstra group executives on the call today.

Nathan Burley: Thanks, Michael. We will now start an investor and analyst Q&A. In addition to Vicki and Michael, we have a number of other Telstra Group executives on the call today. We have Brad Whitcomb, Consumer, Oliver Camplin-Warner, Enterprise, Amanda Hutton, Business, Kim Krogh Andersen, Network Product and Technology, and Steven Worrall, CEO, Telstra Digital Infrastructure. We also ask the analysts to keep themselves to two questions. With that, we will go to the first question, and our first question is from Eric Choi. Go ahead, Eric.

Speaker #2: We have Brad Whitcomb, consumer, Oliver Camplin-Warner, enterprise, Amanda Hutton, product, and technology, and Steven Worrall, CEO Telstra Digital Infrastructure. We also ask the analysts to keep themselves to two questions.

Speaker #2: We have Brad Wickom, consumer, Oliver Caplan Warner, enterprise, Amanda Hutton, business, Kim Crow Anderson, network product, and technology, and Stephen Worrell, ell, CEO Telstra Digital Infrastructure.

Vicki Brady: From my perspective, I am really confident in our mobile business. It is in a real leadership position in terms of the network. It is in a leadership position in terms of the overall experience we provide. I look at the inroads across all elements of customer experience. Yes, the network, but also our contact centers, our in-store experience, our digital experience. As we have talked about, as we leverage AI more and more, I think those benefits into customer experience and network are also exciting for us. So, as I said, aim to increase overall ROIC and confident in our mobile business. Michael, did you want to add anything on mobile?

Speaker #2: Yes, the network, but also our contacts, our store experience, our digital experience, and as we've talked about, as we leverage AI more and more, I think those benefits into customer experience and network are also exciting for us.

Speaker #2: We also ask the analysts to keep themselves to two questions. With that, we'll go to the first question, and our first question is from Eric Choi.

Speaker #2: With that, we'll go to the first question, and our first question is from Eric Choi. Go ahead, Eric.

Speaker #2: So as I said, aim to increase overall ROIC and confident in our mobile business. Michael, did you want to add anything on mobile?

Speaker #2: Go ahead, Eric.

Speaker #3: thanks very much, Nathan. And thanks, team, in advance. My first question is just around probably the key short-term investor debate, which is, what if postpaid mobile growth slows?

Speaker #3: thanks very much, Nathan. And thanks, team, in advance. My first question is just around probably the key short-term investor debate which is, what if postpaid mobile growth slows?

Speaker #1: Well, the only thing I'd add is just as we think about the additional investment we've announced today in mobile, we are seeing that as a reallocation of how we think about our BAU capex going forward.

Eric Choi: Thanks very much, Nathan. Thanks team in advance. My first question is just around probably the key short-term investor debate, which is what if post-paid mobile growth slows? Part of this is just mathematical, given you had an extra month of effective price increases in FY26. I am just wondering if that debate maybe misses the forest for the trees, because if I look at your guidance, you are guiding to AUD 300 million of EBITDA growth in FY27, which is exactly the same as what you did in FY26. That suggests that you guys are pulling other levers or other levers that are accelerating. I just wanted to check. To me, that could be prepaid, wholesale, maybe less cost step-ups. I do not know if that is right. If so, could you elaborate on those and add any other levers that are missing?

Speaker #3: And part of this is just mathematical, given you had an extra month of effective price increases in FY26. But I'm just wondering if that debate maybe misses the forest for the trees, because if I look at your guidance, you're guiding to 300 million bucks of EBITDA growth in FY27, which is exactly the same as what you did in FY26.

Eric Choi: Thanks very much, Nathan. Thanks, team in advance. My first question is just around probably the key short-term investor debate, which is what if post-paid mobile growth slows? Part of this is just mathematical, given you had an extra month of effective price increases in FY26. I am just wondering if that debate maybe misses the forest for the trees, because if I look at your guidance, you are guiding to AUD 300 million of EBITDA growth in FY27, which is exactly the same as what you did in FY26. That suggests that you guys are pulling other levers or other levers that are accelerating. I just wanted to check. To me, that could be prepaid wholesale, maybe less cost step-ups. I do not know if that is right. If so, could you elaborate on those and add any other levers that are missing?

Speaker #1: So we are prioritizing that 800 versus the other activities in our BAU capex. I think that's important, but I agree.

Michael Ackland: Well, the only thing I would add is just as we think about the additional investment we have announced today in mobile, we are seeing that as a reallocation of how we think about our BAU CapEx going forward. We are prioritizing that AUD 800 versus the other activities in our BAU CapEx. So I think that is important. On that, I agree.

Speaker #2: Yeah, good call out. And why don't I make a brief comment on number two, and then I'm sure Michael will want to jump in.

Speaker #3: That suggests that you guys are pulling other levers, or other levers that are accelerating. So I just wanted to check. To me, that could be prepaid wholesale maybe less cost step-ups.

Speaker #3: That suggests that you guys are pulling other levers or other levers that are accelerating. So I just wanted to check. To me, that could be prepaid wholesale maybe less cost step-ups.

Speaker #2: Yeah, looking at cash EPS, we wanted to highlight, I mean, the cash generation of the business is good. And I'm sure we'll get into a discussion a little bit on DNA, so accounting and cash, looking slightly different.

Eric Choi: That suggests that you guys are pulling other levers or other levers that are accelerating. I just wanted to check. To me, that could be prepaid wholesale, maybe less cost step-ups. I do not know if that is right. If so, could you elaborate on those and add any other levers that are missing?

Speaker #2: But the thing I would say is we work through, and as I said, we will expect to update on our new strategy before the end of this financial year.

Speaker #3: So I don't know if that's right. If so, could you elaborate on those and add any other levers that are missing?

Vicki Brady: Yeah, good call out. Why do not I make a brief comment on number 2, and then I am sure Michael will want to jump in. Yeah, looking at cash EPS, we wanted to highlight, I mean, the cash generation of the business is good. I am sure we will get into a discussion a little bit on D&A, so accounting and cash looking slightly different. But, the thing I would say as we work through, and as I said, we will expect to update on our new strategy before the end of this financial year. As we do that, in that context, of course, as you would expect, management and the board will look at the capital management framework and make sure we have got it set to absolutely deliver overall value creation. So I think that will be part of, Michael, what we come back to.

Speaker #2: As we do that, in that context, of course, as you would expect, management and the board will look at the capital management framework and make sure we've got it set to absolutely deliver overall value creation.

Speaker #2: Thanks, Eric. Do you want to give us your other question as well?

Speaker #3: Sure. Thanks, Vicki. So my second question is a bit longer term. So probably the key long-term debates are around satellites and mobile roaming. And I wanted to ask about two specific scenarios that investors are contemplating.

Speaker #3: Sure. Thanks, VICI. So my second question is a bit longer term. So probably the key long-term debates are around satellites and mobile roaming. And I wanted to ask about two specific scenarios that investors are contemplating.

Vicki Brady: Thanks, Eric. Do you want to give us your other question as well?

Eric Choi: Sure. Thanks, Vicki. My second question is a bit longer term. Probably the key long-term debates are around satellites and mobile roaming. I wanted to ask about two specific scenarios that investors are contemplating. The first is if a satellite player picked up MSS spectrum and then became an MVNO for broader coverage. Then the second is if the ACCC declares that last 2% of population that MOCN does not cover. I would love for you to talk through the offsets in these scenarios. Could you save on CapEx? Do you get new roaming revenues? Is satellite going to remain pretty limited by FY30? Ultimately, I would like to understand when you guys wargame these scenarios, can you hold your implicit targets for low single-digit mobile service revenue growth and your 10% ROIC by FY30?

Speaker #2: So I think that will be part of Michael what we come back to. But I know cash, the cash EPS and those metrics are big focus for you.

Vicki Brady: Thanks, Eric. Do you want to give us your other question as well?

Eric Choi: Sure. Thanks, Vicki. My second question is a bit longer term. Probably the key long-term debates are around satellite and mobile roaming. I wanted to ask about two specific scenarios that investors are contemplating. The first is if a satellite player picked up MSS spectrum and then became an MVNO for broader coverage. The second is if the ACCC declares that last 2% of population that MOCN does not cover. I would love for you to talk through the offsets in these scenarios. Could you save on CapEx? Do you get new roaming revenues? Is satellite going to remain pretty limited by FY30? Ultimately, I would like to understand when you guys war game these scenarios, can you hold your implicit targets for low single-digit mobile service revenue growth and your 10% ROIC by FY30?

Speaker #3: So the first is if a satellite player picked up MSS Spectrum and then became an MVNO for broader coverage, and then the second is if the ACCC declares that last 2% of population that Mocken doesn't cover.

Speaker #3: So the first is if a satellite player picked up MSS Spectrum and then became an MVNO for broader coverage, and then the second is if the ACC declares that last 2% of population that MOCN doesn't cover.

Speaker #1: Yeah, no, thanks, Eric. And I think we wanted to highlight that. And it is when we think about how we run the business, we are working hard on how we continue to generate growth in cash profit or cash EPS.

Speaker #3: So I'd love for you to talk through the offsets in these scenarios. So could you say one capex? Do you get new roaming revenues?

Vicki Brady: But I know the cash EPS and those metrics, a big focus for you.

Speaker #3: Is satellite going to remain pretty limited by FY30? And ultimately, I'd like to understand when you guys wargame these scenarios, can you hold your implicit targets for low single-digit mobile service revenue growth, and your 10% ROIC by FY30?

Speaker #1: And there is a divergence. You can see with accounting EPS. So I would sort of refer you back to our capital management framework, which is we'll look to maximize the payment of fully frank dividends.

Michael Ackland: Yeah. Thanks, Eric. I think we wanted to highlight that. It is when we think about how we run the business, we are working hard on how we continue to generate growth in cash profit or cash EPS. There is a divergence you can see with accounting EPS. So I would refer you back to our capital management framework, which is we will look to maximize the payment of fully franked dividends. We will continuously look for what the other capital management actions are to maximize value for shareholders as we go forward. But driving that cash generation of the business, I think it is a really important place for management to focus, and I think it is an important demonstration of the value that we are generating.

Speaker #1: And we'll take continuously look for what the other capital management actions are to maximize value for shareholders as we go forward. But driving that cash generation of the business, I think it's a really important place for management to focus.

Speaker #2: Okay. Wow. Thanks, Eric. You've gone short-term and longer term. So that's a good mix of two questions. What I don't make a couple of comments on the short-term, but Michael will have a lot more, I'm sure, colored add there, and then we can come back and I'll talk a bit more about the longer-term question, because there's a lot in that.

Speaker #2: Okay. Wow. Thanks, Eric. You've gone short-term and longer term. So that's a good mix of two questions. What I don't make a couple of comments on the short-term, but Michael will have a lot more, I'm sure, color to add there, and then we can come back and I'll talk a bit more about the longer-term question, because there's a lot in that.

Vicki Brady: Okay. Wow. Thanks, Eric. You have gone short term and longer term. That is a good mix of two questions. Why don't I make a couple of comments on the short term, but Michael will have a lot more, I am sure, color to add there, and then we can come back and I will talk a bit more about the longer term question, because there is a lot in that. First on the short term, just as we look at entering, we are now into FY27. First thing I would say is we feel very confident in the mobile business. Again, you can see the strength of the mobile business in FY26. As we enter this year, we enter with good run rates on ARPUs. I think, of course, post-paid is a big driver in there, but we have a big portfolio of products and brands in our mobile business.

Speaker #1: And I think it's an important demonstration of the value that we're generating.

Speaker #2: First on the short-term, just as we look at entering we're now into FY27, first thing I'd say is we feel very confident in the mobile business.

Speaker #2: First on the short-term, just as we look at entering we're now into FY27. First thing I'd say is we feel very confident in the mobile business.

Speaker #2: And then Eric, I think the third question you pointed to some of AT&T's announcements and their capital management approach. Obviously, as we're working on our strategy and thinking about the future, of course, we're also having a look and looking at what's happening around the world.

Speaker #2: Again, you can see the strength of the mobile business in FY26. As we enter this year, we enter with good run rates on APUs.

Speaker #2: Again, you can see the strength of the mobile business in FY26. As we enter this year, we enter with good run rates on ARPUs.

Speaker #2: What I would say, I think, is important, and it's really demonstrated, I think, in today's half-year results, is as we think about value creation, inside Telstra, we're thinking about it sort of three ways.

Speaker #2: And I think of course, postpaid is a big driver in there, but we have a big portfolio of products and brands in our mobile business.

Vicki Brady: First thing I would say is we feel very confident in the mobile business. Again, you can see the strength of the mobile business in FY26. As we enter this year, we enter with good run rates on ARPUs. I think, of course, post-paid is a big driver in there, but we have a big portfolio of products and brands in our mobile business.

Vicki Brady: Then Eric, I think the third question you pointed to some of AT&T's announcements and their capital management approach. Obviously, as we are working on our strategy and thinking about the future, of course, we are also having a look and looking at what is happening around the world. What I would say I think is important, and it is really demonstrated, I think, in today's H1 results, is as we think about value creation inside Telstra, we are thinking about it three ways. Firstly, there is obviously the value creation from the growth in the core of the business, and you see that momentum in terms of earnings growth, and that is coming from mobile infrastructure, obviously strong on productivity as well. Whilst we manage our BAU CapEx and reallocate it to those areas like mobile where we see big opportunity.

Speaker #2: And as you can see, we're seeing real strength across the board. With mobile service revenue growth at 4.8% for FY26, underpinned by APU growing across products and segments, and obviously customer growth overall as well.

Speaker #2: And as you can see, we're seeing real strength across the board. With mobile service revenue growth at 4.8% for FY26, underpinned by ARPU growing across products and segments, and obviously customer growth overall as well.

Speaker #2: Firstly, there's obviously the value creation from the growth in the core of the business. And you see that momentum in terms of earnings growth.

Vicki Brady: As you can see, we are seeing real strength across the board. With mobile service revenue growth at 4.8% for FY26, underpinned by ARPU growing across products and segments, and customer growth overall as well. I think on mobile headed into FY27, feeling positive about that. There is outside of mobile, we have our infrastructure business, which continues to deliver those consistent long-term infrastructure related growth, particularly we have NBN contract in there with the CPI link, and then we are seeing good demand across the digital infrastructure business across the various assets there. I would also say operating leverage is a big focus for us. We do enter the year, we made some changes. There are always difficult changes to make during FY26, so we will have some flow through benefits of those. They would be some of the things I would call out.

Speaker #2: And that's coming from mobile infrastructure, obviously strong on productivity as well. And whilst we manage our BAU capex and reallocate it to those areas like mobile where we see big opportunity, the second thing is obviously strategic investment and our portfolio management.

Vicki Brady: As you can see, we are seeing real strength across the board. Mobile service revenue growth is at 4.8% for FY26, underpinned by ARPU growing across products and segments and customer growth overall as well. I think on mobile, headed into FY27, we are feeling positive about that. There is outside of mobile, we have our infrastructure business, which continues to deliver those consistent long-term infrastructure related growth, particularly we have NBN contract in there with the CPI link. Then we are seeing good demand across the digital infrastructure business across the various assets there. I would also say operating leverage is a big focus for us. We do enter the year, we made some changes. They are always difficult changes to make during FY26, so we will have some flow-through benefits of those. They would be some of the things I would call out.

Speaker #2: So I think on mobile headed into FY27, feeling positive about that. There's obviously then outside of mobile, we've got our infrastructure business, which continues to deliver those consistent long-term infrastructure-related growth, particularly obviously we've got MBN, contracting there with the CPI link, and then we're seeing good demand across the digital infrastructure business across the various assets there.

Speaker #2: We've obviously got Intercity Fiber underbuild. And we are actively managing the portfolio. And again, you've seen in the half, obviously, the Foxtel announcement and titanium ventures fund too.

Speaker #2: And then third, as we think about capital management, absolutely, I mean, I think we've demonstrated great discipline in capital management. Today's announcement of the buyback is another example of that.

Vicki Brady: The second thing is obviously strategic investment and our portfolio management. We have obviously got intercity fiber under build, and we are actively managing the portfolio. Again, you have seen in the half, obviously, the Foxtel announcement and Titanium Ventures Fund II. Then third, as we think about capital management, absolutely, I mean, I think we have demonstrated great discipline in capital management. Today's announcement of the buyback is another example of that, and of course, we will continuously assess that in the context of our strategy. So I just thought it might help to talk about the three ways we are thinking about value creation overall. Mike, I do not know if you wanted to add anything.

Speaker #2: I'd also say operating leverage has a big focus for us. We do enter the year, we made some changes. There are always difficult changes to make during FY26.

Speaker #2: I'd also say operating leverage has a big focus for us. We do enter the year, we made some changes. They're always difficult changes to make during FY26.

Vicki Brady: Then we are seeing good demand across the digital infrastructure business across the various assets there. I would also say operating leverage is a big focus for us. We do enter the year, we made some changes. They are always difficult changes to make during FY26, so we will have some flow-through benefits of those. They would be some of the things I would call out.

Speaker #2: And of course, we will continuously assess that in the context of our strategy. So I just thought it might help to just talk about the three ways we're sort of thinking about value creation overall.

Speaker #2: So we will have some flow-through benefits of those. They'd be some of the things I'd call out. Michael, there's probably a whole lot more, maybe worth calling out, lever-wise for Eric.

Speaker #1: Yeah. I mean, I think you covered most of them. I would, Eric, I'd call out and reinforce Vicki's points on mobile. We think about that, the mobile business as a portfolio.

Speaker #1: Yeah. I mean, I think you covered most of them. I would, Eric, I'd call out and reinforce VICI's points on mobile. We think about that, the mobile business as a portfolio.

Vicki Brady: Michael, there is probably a whole lot more maybe worth calling out lever-wise for Eric.

Speaker #2: Michael, I don't know if you wanted to add anything.

Speaker #1: No, absolutely. I think you covered it perfectly. So thank you.

Speaker #2: Okay. We'll go to our next question. From NCHO Rakoski, from Evans & Partners. Go ahead at NCHO.

Michael Ackland: Yeah, I think you covered most of them. Eric, I would call out and reinforce Vicki's points on mobile. We think about the mobile business as a portfolio, and we are confident in our proposition and we are confident in our ability to continue to grow mobile service revenue, as you point out. I think the infrastructure business growth. The other one I would call out is just to give a little bit more on cost. If you look at the 2026 result, we have called out higher than usual compensation and remediation costs that we called out at the half as well. We also spent around AUD 206 million in FY26 in redundancy. If you look typically, our redundancy spend has generally been closer to AUD 80 million to AUD 100 million. Then we will also see the benefits of that redundancy spend come through.

Vicki Brady: Michael, there is probably a whole lot more maybe worth calling out lever-wise for Eric.

Speaker #1: And we're confident in our proposition, and we're confident in our ability to continue to grow mobile service revenue as you point out. I think the infrastructure business growth.

Speaker #1: And we're confident in our proposition, and and we're confident in our ability to continue to grow mobile service revenue as you point out. I think the infrastructure business growth.

Michael Ackland: Yeah. I think you covered most of them. Eric, I would call out and reinforce Vicki's points on mobile. We think about the mobile business as a portfolio, and we are confident in our proposition, and we are confident in our ability to continue to grow mobile service revenue, as you point out. I think the infrastructure business growth. The other one I would call out is just to give a little bit more on cost. If you look at the 2026 result, we have called out higher than usual compensation and remediation costs that we called out at the half as well. We also spent around AUD 206 million in FY26 in redundancy. If you look typically, our redundancy spend has generally been closer to AUD 80 million to AUD 100 million. Then we will also see the benefits of that redundancy spend come through.

Speaker #3: Morning, Vicky. Morning, Michael. Morning, everyone. So I don't want to labor the point too much on capital management, but just conscious that you're franking account balance is now in deficit.

Michael Ackland: No, absolutely. I think you covered it perfectly. So thank you.

Speaker #1: The other one I would call out is just to give a little bit more on cost. So if you look at the 26 result, we've called out higher than usual compensation and remediation costs that we called out at the half as well.

Nathan Burley: Okay. We'll go to our next question from Entcho Raykovski, from E&P. Go ahead, Entcho.

Nathan Burley: Okay. We'll go to our next question from Entcho Raykovski, from Evans & Partners. Go ahead, Entcho.

Speaker #3: I think it's deficit of 275 million. And I presume that's a key factor in your decision to pursue a buyback rather than declare any special divvy and so I'm just curious, I mean, do you see a part of that deficit reversing over time?

Entcho Raykovski: Morning, Vicki. Morning, Michael. Morning, everyone. I don't want to labor the point too much on capital management, but just conscious that your franking account balance is now in deficit. I think it's a deficit of AUD 275 million, and I presume that's a key factor in your decision to pursue a buyback rather than declare any special divvy. I'm just curious, do you see a path for that deficit reversing over time, or would you be willing to pay a dividend, which is not fully franked? Then I've got a couple of others. I don't know if I should ask them now or wait.

Speaker #1: We also spent around 206 million in FY26 in redundancy. And if you look typically, our redundancy spend has generally been closer to 80 to 100 million and then we'll also see the benefits of that redundancy spend come through.

Michael Ackland: If you look at the 2026 result, we have called out higher than usual compensation and remediation costs that we called out at the half as well. We also spent around AUD 206 million in FY26 in redundancy. If you look typically, our redundancy spend has generally been closer to AUD 80 million to AUD 100 million. Then we will also see the benefits of that redundancy spend come through.

Speaker #3: Or would you be willing to pay a dividend, which is not fully franked? And I've got a couple of others. I don't know if I should ask them now or wait.

Speaker #1: So on the headwind side, though, I think international is probably worth calling out. We talked about 33 million of benefits that we saw in international, and normalizing for those the performance was different in international.

Speaker #1: So on the headwind side, though, I think international is probably worth calling out. We talked about 33 million of benefits that we saw in international and normalizing for those the performance was different in international.

Speaker #2: Yeah, why don't you ask them now, NCHO, and then we can we'll handle each of them.

Michael Ackland: On the headwind side, though, I think international is probably worth calling out. We talked about AUD 33 million of benefits that we saw in international, and normalizing for those, the performance was different international, and then as well as the sale of the wholesale voice business will play through into 2027. Then other EBITDA was a bit higher than normalized due to the bond and FX revaluation impacts in there. I think there are a few puts and takes, but very confident around that 300. Think about mobile as a portfolio overall, infrastructure growth, and then we are confident on, when you look at FY26, confident on continuing operating leverage, contributing to earnings growth in 2027.

Speaker #3: Okay, great. The second one is in NAS, Michael mentioned the benefit in the first half from the timing of BAU redundancies. Just if you can clarify, do you expect that to be less of a benefit in the second half?

Michael Ackland: On the headwind side, though, I think international is probably worth calling out. We talked about AUD 33 million of benefits that we saw in international, and normalizing for those, the performance was different international. Then as well as the sale of the wholesale voice business will play through into 2027. Then other EBITDA was a bit higher than normalized due to the bond and FX revaluation impacts in there. I think there are a few puts and takes, but very confident around that 300. Think about mobile as a portfolio overall, infrastructure growth, and then we are confident on, when you look at FY26, confident on continuing operating leverage, contributing to earnings growth in 2027.

Speaker #1: And then as well as the sale of the wholesale voice business, we'll play through into 27. And then other EBITDA was a bit higher than normalized due to the bond and FX revaluation impacts in there.

Speaker #1: And then as well as the sale of the wholesale voice business will play through into 27. And then other EBITDA was a bit higher than normalized due to the bond and FX revaluation impacts in there.

Vicki Brady: Yeah. Why don't you ask them now, Entcho, and then we'll handle each of them.

Speaker #3: I guess my thinking is presumably you should see the run rate from 1H reductions flowing into the second half. If you could provide further color, that would be useful.

Entcho Raykovski: Okay, great. The second one is in NAS. Michael mentioned the benefits in the H1 from the timing of BAU redundancies. Just if you can clarify, do you expect that to be less of a benefit in the H2? I guess my thinking is presumably you should see the run rate from H1 reductions flowing into the H2. If you could provide further color, that would be useful. The third question, just looking at your EBITDA growth for the H1, it was a pretty strong outcome, up 5.8%. If I look at the full year guidance, the top end of your guidance range implies 5.5% growth. I sort of look at the timing of price increases in mobile, the cost out, as it runs through the base, it should deliver better growth in the H2.

Speaker #1: So I think there's a few puts and takes, but very confident around that 300. Think about mobile as a portfolio overall, infrastructure growth, and then we are confident on when you look at FY26, confident on continuing operating leverage contributing to earnings growth in 27.

Speaker #1: So I think there's a few puts and takes, but very confident around that 300. Think about mobile as a portfolio overall. Infrastructure growth and then we are confident on when you look at FY26, confident on continuing operating leverage contributing to earnings growth in 27.

Speaker #3: And then the third question, just looking at you a bit dark growth for the first half, it was a pretty strong outcome up 5.8%.

Speaker #3: If I look at the full-year guidance, the top end of your guidance range implies 5.5% growth. And I sort of look at the timing of price increases in mobile, the cost out, as it runs through the base, it should deliver better growth in the second half.

Speaker #2: Yeah. Thank you. Thanks, Michael. Good question, broad-ranging. And let me go to the longer term. Eric, and there's quite a lot in that one.

Speaker #2: Yeah. Thank you. Thanks, Michael. A good question, broad-ranging. And let me go to the longer term. Eric, and there's quite a lot in that one.

Speaker #2: And I think it really does reflect this moment in time where we're at at the moment. You think about just how quickly technology is changing.

Vicki Brady: Yeah. Thank you. Thanks, Michael. Good question, broad-ranging. Let me go to the longer term, Eric, and there's quite a lot in that one, and I think it really does reflect this moment in time where we're at at the moment. You think about just how quickly technology is changing. You think about how quickly the market is changing. You spoke about satellite as one of those new technologies that's driving change. Let me address it in a couple of ways. The first thing I'd say, just on satellite itself, we obviously made the choice to invest in bringing satellite to mobile services to our customers back in June last year with the texting or messaging service, and more recently expanded that to select satellite applications. Why did we do that?

Vicki Brady: Yeah. Thank you. Thanks, Michael. Good question. Broad-ranging. Let me go to the longer term, Eric, and there's quite a lot in that one, and I think it really does reflect this moment in time where we're at at the moment. You think about just how quickly technology is changing. You think about how quickly the market is changing. You spoke about satellite as one of those new technologies that's driving change. Let me address it in a couple of ways. The first thing I'd say, just on satellite itself, we obviously made the choice to invest in bringing satellite to mobile services to our customers back in June last year with the texting or messaging service, and more recently expanded that to select satellite applications. Why did we do that?

Speaker #3: So I guess my question is, did you consider upgrading the full year but dark guidance range? And are there perhaps any other negative offsetting factors in the second half we need to take into account?

Speaker #2: You think about how quickly the market is changing. You spoke about satellite as one of those new technologies. That's driving change. So let me address it in a couple of ways.

Speaker #2: You think about how quickly the market is changing. You spoke about satellite as one of those new technologies that's driving change. So let me address it in a couple of ways.

Speaker #3: Thank you.

Speaker #2: Great. Thanks, NCHO, for those. So why don't I I think on capital management and the franking account, I'll hand to Michael in a second because that feels like a space I know, Michael, we're watching closely and you can comment on.

Speaker #2: The first thing I'd say, just on satellite itself, we obviously made the choice to invest in bringing satellite to mobile services to our customers back in June last year with the texting or messaging service and more recently expanded that to select satellite applications.

Entcho Raykovski: I guess my question is, did you consider upgrading the full year EBITDA guidance range, and are there perhaps any other negative offsetting factors in the H2 we need to take into account? Thank you.

Speaker #2: Just in terms of NAS, yes, Michael did call out particularly those BAU redundancy timing. It was a benefit in the first half. We wouldn't expect that same level of benefit the second half.

Vicki Brady: Great. Thanks, Entcho, for those. Why don't I think on capital management and the franking account, I'll hand to Michael in a second because that feels like a space I know, Michael, we're watching closely and you can comment on. Just in terms of NAS, yes, Michael did call out particularly those BAU redundancy timing. It was a benefit in the H1. We wouldn't expect that same level of benefit the H2. So we just wanted to be very clear about that in terms of expectations around overall NAS EBITDA. On the final point around guidance, the thing I would say is, hopefully it came through today as we spoke to the results. The business is on track. We have reaffirmed guidance. We do provide a pretty tight guidance range. As you know, there's lots of parts of the business.

Speaker #2: Why did we do that? We could see the benefit for our customers when they're outside the mobile footprint or as an extra layer of resilience.

Speaker #2: So we just wanted to be very clear about that in terms of expectations around overall NAS EBITDA. And then on the final point around guidance, the thing I would say is hopefully it came through today as we spoke to the results.

Vicki Brady: We could see the benefit for our customers when they're outside the mobile footprint or as an extra layer of resilience. We're definitely seeing our customers enjoy that. Again, it is outside the footprint or it's not dominating our use by any stretch. It's still relatively small in the scheme of our overall mobile business. I would say one of the things we're focused on, because this technology keeps moving and today the technology is providing benefit to customers outside our footprint. But it is a little bit of a clunky experience. It's not a seamless one. There are other players in this space. The technology is moving fast.

Speaker #2: And we're definitely seeing our customers enjoy that. It is, again, it is outside the footprint or it's not dominating our use by any stretch.

Vicki Brady: We could see the benefit for our customers when they're outside the mobile footprint or as an extra layer of resilience. And we're definitely seeing our customers enjoy that. Again, it is outside the footprint or it's not dominating our use by any stretch. It's still relatively small in the scheme of our overall mobile business. And I would say one of the things we're focused on, because this technology keeps moving and today the technology is providing benefit to customers outside our footprint. But it is a little bit of a clunky experience. It's not a seamless one. And there are other players in this space. The technology is moving fast.

Speaker #2: The business is on track. We have reaffirmed guidance. We do provide a pretty tight guidance range. And as you know, there's lots of parts of the business.

Speaker #2: It's still relatively small in the scheme of our overall mobile business. And I would say one of the things we're focused on, because this technology keeps moving, and today the technology is providing benefit to customers outside our footprint.

Speaker #2: We're confident in the second half and that's why we have reaffirmed guidance today. And looking forward to completing FY25 and coming back to our full-year results in August.

Speaker #2: But it is a little bit of a clunky experience. It's not a seamless one. And there are other players in this space. The technology is moving fast.

Speaker #2: But Michael, why don't I get you to jump in on any of those?

Speaker #1: Sure. Yeah. So absolutely right. Our franking balance is tight. And a little tighter than it has been. And that's well, partly driven by the lift in DNA, as we've gone through.

Speaker #2: We're engaged with a lot of those players. And we're really focused on how do we make sure obviously in light of we've got the universal outdoor mobile obligations, the proposed legislation from the government that obviously puts the obligation on the three mobile network operators, to provide that outdoor service which will mean outside our footprints.

Vicki Brady: We're confident in the H2, and that's why we have reaffirmed guidance today, and looking forward to completing FY25 and coming back to our full year results in August. Michael, why don't I get you to jump in on any of those?

Vicki Brady: We're engaged with a lot of those players, and we're really focused on how do we make sure, obviously in light of we've got the universal outdoor mobile obligations, the proposed legislation from the government that obviously puts the obligation on the three mobile network operators to provide that outdoor service, which will mean outside our footprints. We do need access to satellite to mobile technology. We're really focused on, as this technology evolves, staying very close to the various players in it. We are focused on making sure we can find solutions and technology that makes that experience a seamless one for our customers. So that's very much front of mind for us. I would say our view right now, we do still see it as complementary. It is playing that smaller role at the edges outside of our footprint.

Vicki Brady: We're engaged with a lot of those players, and we're really focused on how do we make sure, obviously in light of we've got the universal outdoor mobile obligations, the proposed legislation from the government that obviously puts the obligation on the three mobile network operators to provide that outdoor service, which will mean outside our footprints. We do need access to satellite, to mobile technology. We're really focused on, as this technology evolves, staying very close to the various players in it. And we are focused on making sure we can find solutions and technology that makes that experience a seamless one for our customers. So that's very much front of mind for us. I would say our view right now, we do still see it as complementary. It is playing that smaller role at the edges outside of our footprint.

Speaker #1: We do see a pathway to manage that, but it is tighter than it has been. So we remain confident in our ability to manage it, but definitely tighter than it has been.

Michael Ackland: Sure. Yeah. You are absolutely right. Our franking balance is tight, and a little tighter than it has been, and that is partly driven by the lift in D&A as we have gone through. We do see a pathway to manage that, but it is tighter than it has been. We remain confident in our ability to manage it, but definitely tighter than it has been. On timing of, on the BAU redundancy point, just to sort of clarify, it sort of feeds a little bit into the H1/H2 is if you look at the H1 of FY24, in our OpEx, we spent more on redundancy in BAU than we have spent in the H1 of FY25, which is why we get that PCP gain.

Speaker #2: We do need access to satellite to mobile technology. We're really focused on, as this technology evolves, staying very close to the various players in it.

Speaker #1: On timing of on the BAU redundancy point, just to sort of clarify, and it sort of feeds a little bit into the first half, second half, is if you look at the first half of FY24, in our opex, we spent more on redundancy in BAU than we have spent in the first half of FY25, which is why we get that PCP gain.

Speaker #2: And we are focused on making sure we can find solutions and technology that makes that experience as seamless one for our customers. So that's very much front of mind for us.

Speaker #2: I would say our view right now, we do still see it as complementary. It is playing that smaller role at the edges outside of our footprint.

Vicki Brady: And we are focused on making sure we can find solutions and technology that makes that experience a seamless one for our customers. So that's very much front of mind for us. I would say our view right now, we do still see it as complementary. It is playing that smaller role at the edges outside of our footprint.

Speaker #1: We will spend probably more on BAU redundancies in the second half than we may have in the second half of FY24. So that'll create a headwind.

Speaker #2: We think it's an important role, particularly in a country like Australia. And we did make the choice to invest in bringing that to market because we could see the propensity for our customers, particularly those in regional, rural, and remote Australia, it could bring real benefit to them.

Speaker #2: We think it's an important role, particularly in a country like Australia. And we did make the choice to invest in bringing that to market because we could see the propensity for our customers, particularly those in regional rural and remote Australia, it could bring real benefit to them.

Speaker #1: Offset to that, as you rightly point out, is the sort of annualizing benefit of the role reductions coming through. So there's a few puts and takes in there, but we wanted to specifically call out not just in enterprise, but across the board our fixed cost core PCP reduction has benefited from having less redundancy money spent in the first half of '25 than we spent in the first half of '24.

Vicki Brady: We think it's an important role, particularly in a country like Australia. We did make the choice to invest in bringing that to market because we could see the propensity for our customers, particularly those in regional, rural and remote Australia. It could bring real benefit to them. I think we'll see over time. We'll need different layers of connectivity. We still use a lot of fiber. Mobile keeps getting better. I'm sure we'll keep seeing satellite getting better, and that'll just continue as demand and needs change as the technology evolves. On the broader point, you mentioned the ACCC. They've obviously announced, they're going to conduct an inquiry, and it is a mobile services inquiry. It is a broad look at the mobile industry.

Vicki Brady: We think it's an important role, particularly in a country like Australia. And we did make the choice to invest in bringing that to market because we could see the propensity for our customers, particularly those in regional, rural and remote Australia. It could bring real benefit to them. And I think we'll see over time. We'll need different layers of connectivity. We still use a lot of fiber. Mobile keeps getting better. I'm sure we'll keep seeing satellite getting better, and that'll just continue as demand and needs change as the technology evolves. On the broader point, you mentioned the ACCC. They've obviously announced they're going to conduct an inquiry, and it is a mobile services inquiry. It is a broad look at the mobile industry.

Michael Ackland: We will spend probably more on BAU redundancies in the H2 than we may have in the H2 of FY24. That will create a headwind. Offset to that, as you rightly point out, is the sort of annualizing benefit of the role reductions coming through. There is a few puts and takes in there, but we wanted to specifically call out, not just in Enterprise, but across the board. Our fixed cost core PCP reduction has benefited from having less redundancy money spent in the H1 of FY25 than we spent in the H1 of FY24.

Speaker #2: And I think we'll see over time. We'll need different layers of connectivity we still use a lot of fiber. Mobile keeps getting better. I'm sure we'll keep seeing satellite getting better, and that'll just continue as demand and needs change as the technology evolves.

Speaker #2: As demand and needs change, as the technology evolves. On the broader point, you mentioned the ACCC. They've obviously announced they're going to conduct an inquiry.

Speaker #2: We'll take our next question, which comes from Tom Beadle from Jardin.

Speaker #2: On the broader point, you mentioned the ACCC. They've obviously announced they're going to conduct an inquiry. And it is a mobile services inquiry. It is a broad look at the mobile industry.

Speaker #3: Oh, hi, Vicky. Hi, Michael. And team, thanks for the opportunity to ask questions. I've got three as well, please. Just firstly, maybe on mobile postpaid APU, obviously, it was in line with, I think, most people's expectations, but I'd just be interested to dig into some of the moving parts there.

Speaker #2: And it is a mobile services inquiry. It is a broad look at the mobile industry. Obviously, the discussion paper's not out yet with all the finer detail, but certainly from what we can see it is going to be a broad look at the mobile industry, including looking at new technologies and satellite does get mentioned in that context.

Speaker #2: Obviously, the discussion paper's not out yet with all the finer detail, but certainly from what we can see it is going to be a broad look at the mobile industry, including looking at new technologies and satellite does get mentioned in that context.

Nathan Burley: We will take our next question, which comes from Tom Beadle from Jarden.

Speaker #3: I know you've got the consumer price increases, that softness in enterprise mobile. I know within my estimate, I thought there might be a bit of a spin down or negative mix shift as well.

Tom Beadle: Oh, hi, Vicki. Hi, Michael and team. Thanks for the opportunity to ask questions. I have got three as well, please. Just firstly, maybe on mobile postpaid ARPU. Obviously, it was in line with, I think, most people's expectations, but I would just be interested to dig into some of the moving parts there. I know you have got the consumer price increases, that softness in Enterprise Mobile. I know within my estimate, I had thought there might be a bit of a spin down or negative mix shift as well. What I am really interested, though, is just the exit rate into the H2, just with the full run rate of those price increases as well. I assume that that Enterprise softness in the H2 base will wash out as well. Can you just talk to all those moving parts, please?

Vicki Brady: Obviously, the discussion paper is not out yet with all the finer detail, but certainly from what we can see, it is going to be a broad look at the mobile industry, including looking at new technologies, and satellite does get mentioned in that context. They are going to engage widely. The other thing I would call out, and we, of course, have been thinking about this. It comes into how we think about our business over the long run and the different scenarios we run. The ACCC chair did make a speech last week, and I think there were some really important elements in that speech.

Vicki Brady: Obviously, the discussion paper's not out yet with all the finer detail, but certainly from what we can see, it is going to be a broad look at the mobile industry, including looking at new technologies. Satellite does get mentioned in that context. They are going to engage widely. The other thing I would call out, and we, of course, have been thinking about this. It comes into how we think about our business over the long run and the different scenarios we run. The ACCC chair did make a speech last week, and I think there were some really important elements in that speech.

Speaker #3: So what I'm really interested, though, is just the exit rate into the second half. Just with the full run rate of those price increases as well.

Speaker #2: And they are going to engage widely. The other thing I would call out, and we, of course, have been thinking about this. It comes into how we think about our business over the long run and the different scenarios we run.

Speaker #3: And I assume that that enterprise softness in the second half base will wash out as well. So can you just talk to all those moving parts, please?

Speaker #2: The ACCC chair did make a speech last week, and I think there were some really important elements in that speech. And she spoke about that as a regulator needing to find that balance in terms of how regulation can make sure it can keep supporting good outcomes for consumers.

Speaker #3: Just second question is on BAU capex. It's just a follow-up from Eric's question. I guess with that extra allocation of capex to mobile over the next four years and no change to that bucket, where is that coming from?

Vicki Brady: She spoke about that as a regulator, needing to find that balance in terms of how regulation can make sure it can keep supporting good outcomes for consumers, but also at the same time, give businesses and investors confidence to keep investing in long-term infrastructure, and needing that confidence that that will be recognized and reasonable returns will be made on it. I think that's an important point as we reflect on the mobile industry. You look at the Australian mobile industry over the last two decades, there has been a very competitive market and a lot of competition in infrastructure investment. What has that driven for our country? It's absolutely driven us as operators to invest, to innovate, to try and differentiate, whether it's on coverage, on speed, on value. That's got great outcomes.

Speaker #3: And also, you're guiding to 3.2 to 3.4 billion BAU capex this year. Should we think about that as sort of being the base for your BAU capex bucket going forward, maybe growing by CPI?

Speaker #2: But also at the same time, give businesses and investors confidence to keep investing in long-term infrastructure. And needing that confidence that that will be recognized and reasonable returns will be made on it.

Vicki Brady: She spoke about that as a regulator, needing to find that balance in terms of how regulation can make sure it can keep supporting good outcomes for consumers, but also at the same time give businesses and investors confidence to keep investing in long-term infrastructure. Needing that confidence that that will be recognized and reasonable returns will be made on it. I think that's an important point as we reflect on the mobile industry. You look at the Australian mobile industry over the last two decades. There has been a very competitive market and a lot of competition in infrastructure investment. What has that driven for our country? It's absolutely driven us as operators to invest, to innovate, to try and differentiate, whether it's on coverage, on speed, on value. That's got great outcomes.

Tom Beadle: Just a second question is on BAU CapEx. It is just a follow-up from Eric's question. I guess with that extra allocation of CapEx to mobile over the next four years and no change to that bucket, where is that coming from? Also, you are guiding to AUD 3.2 billion to AUD 3.4 billion BAU CapEx this year. Should we think about that as sort of being the base for your BAU CapEx bucket going forward, maybe growing by CPI? Then just a third question on headcount. It obviously fell by 1,885 in the half. Can you just talk to the drivers of that movement? How much was from the 2,800 reduction that you announced last year? I mean, are there any more that is going to come through in the H2? I think you have already mentioned BAU redundancies will be a bit higher in the H2.

Speaker #2: And needing that confidence that that will be recognized and reasonable returns will be made on it. And I think that's an important point. As we reflect on the mobile industry, you look at the Australian mobile industry over the last two decades, there has been a very competitive market and a lot of competition in infrastructure investment.

Speaker #3: And then just a third question on headcount. It obviously fell by 1,885 in the half, can you just talk to the drivers of that movement?

Speaker #2: And I think that's an important point. As we reflect on the mobile industry, you look at the Australian mobile industry over the last two decades, there has been a very competitive market and a lot of competition in infrastructure investment.

Speaker #3: How much was from the 2,800 reduction that you announced last year? I mean, are there any more that's going to come through in the second half?

Speaker #2: And what has that driven for our country? It's absolutely driven us as operators to invest, to innovate, to try and differentiate whether it's on coverage, on speed, on value.

Speaker #3: I think you've already mentioned BAU redundancies will be a bit higher in the second half. And just, was there any sort of growth in other parts of the businesses or from insourcing things like that?

Speaker #2: And that's got great outcomes. I mean, our mobile networks in the country benchmark globally in the top few. It's meant Australians have got 3G, 4G, 5G amongst the first few countries in the world.

Speaker #3: If you could talk about thanks.

Speaker #2: Yeah, no, thanks, Tom, for those questions. So just taking them in order and I'm sure Michael we might tick tack on a few of these because I suspect most of them sit with the two of us.

Vicki Brady: I mean, our mobile networks in the country benchmark globally in the top few. It's meant Australians have got 3G, 4G, 5G amongst the first few countries in the world. So we think it is timely that the ACCC inquiry will happen. That will be a broad look at the mobile industry. They will do that in a very structured framework. We think it's timely, given the technology change, given what's going on, the various dynamics. I would call out in that sort of infrastructure-based competition in mobile, as I spoke about earlier. In the last five years, as Telstra, we've invested AUD 9.5 billion in our mobile network. AUD 3.8 billion of that has been in regional, and we've had every incentive to do that because that's part of how we differentiate and compete in the market. So I know, clearly, there's a lot of feedback.

Tom Beadle: Was there any sort of growth in other parts of the businesses or from insourcing, things like that, if you could talk about? Thanks.

Speaker #2: So we think it is timely that the ACCC inquiry will happen. That'll be a broad look at the mobile industry. They will do that in a very structured framework.

Speaker #2: So we think it is timely that the ACCC inquiry will happen. That will be a broad look at the mobile industry. They will do that in a very structured framework.

Vicki Brady: I mean, our mobile networks in the country benchmark globally in the top few. It's meant Australians have got 3G, 4G, 5G amongst the first few countries in the world. So we think it is timely that the ACCC inquiry will happen. That will be a broad look at the mobile industry. They will do that in a very structured framework. We think it's timely given the technology change, given what's going on, the various dynamics. I would call out in that sort of infrastructure-based competition in mobile, as I spoke about earlier, in the last five years as Telstra, we've invested AUD 9.5 billion in our mobile network. AUD 3.8 billion of that has been in regional, and we've had every incentive to do that because that's part of how we differentiate and compete in the market. So I know, clearly, there's a lot of feedback.

Speaker #2: Just in terms of postpaid mobile APU, the first thing I'd say is, Tom, it's absolutely in line with what we anticipated, as you called out.

Vicki Brady: Yeah. No, thanks, Tom, for those questions. Just taking them in order, I am sure, Michael, we might tic-tac on a few of these because I suspect most of them sit with the two of us. Just in terms of postpaid mobile ARPU, the first thing I would say is, Tom, it is absolutely in line with what we anticipated. As you called out, there are three and a half months of the Consumer and Small Business price rises. That is different, obviously, to prior year, where there were six months. You are absolutely right. On the TE ARPU, we absolutely, as we talked about at full year last year, in that space, you obviously have long-term contracts, you have panel contracts.

Speaker #2: There's 3.5 months of the consumer and small business price rises. That is different obviously to prior year where there were six months. And you're absolutely right on the TE APU.

Speaker #2: And we think it's timely, given the technology change, given what's going on, the various dynamics. And I would call out in that sort of infrastructure-based competition in mobile, as I spoke about earlier, in the last five years, as Telstra, we've invested nine and a half billion dollars in our mobile network, 3.8 billion of that has been in regional.

Speaker #2: And we think it's timely given the technology change, given what's going on, the various dynamics. And I would call out in that sort of infrastructure-based competition in mobile, as I spoke about earlier, in the last five years, as Telstra we've invested nine and a half billion dollars in our mobile network, 3.8 billion of that has been in regional.

Speaker #2: We absolutely, as we talked about at full year last year, in that space, you obviously you have long-term contracts, you have panel contracts, the timing of customers taking up and moving across to some of that pricing, we saw that impact in the second half of last financial year.

Vicki Brady: I would call out in that sort of infrastructure-based competition in mobile, as I spoke about earlier, in the last five years as Telstra, we've invested AUD 9.5 billion in our mobile network. AUD 3.8 billion of that has been in regional, and we've had every incentive to do that because that's part of how we differentiate and compete in the market. So I know, clearly, there's a lot of feedback.

Speaker #2: And we've had every incentive to do that because that's part of how we differentiate and compete in the market. So I know clearly there's a lot of feedback.

Speaker #2: And we've had every incentive to do that because that's part of how we differentiate. And compete in the market. So I know clearly there's a lot of feedback.

Speaker #2: Regional Australia have high expectations as to all of our customers, and that's why I do think it is timely that the ACCC conduct this inquiry to be clear we do not support mandated domestic roaming.

Speaker #2: And you see that flow through. To be honest, the enterprise space is incredibly competitive. And not surprisingly, whether it's corporates or government agencies, there is a lot of focus on cost.

Vicki Brady: Regional Australia have high expectations, as do all of our customers, and that's why I do think it is timely that the ACCC conduct this inquiry. To be clear, we do not support mandated domestic roaming. We support commercial roaming, but we believe mandated domestic roaming would take away that incentive for infrastructure-based investment and competition and would likely lead to worse outcomes in regional Australia.

Vicki Brady: The timing of customers taking up and moving across to some of that pricing, we saw that impact in the H2 of last financial year, and you see that flow through. To be honest, the enterprise space is incredibly competitive. Not surprisingly, whether it is corporates or government agencies, there is a lot of focus on cost. We have put in place, under Oliver's leadership, very strong guardrails around our enterprise business. We are in a leading position on our mobile network. So making sure we deliver value from that leading position is a focus. In terms of looking forward, look, that space, you will have customers taking up some of those panel deals. We have seen it pass through in this half.

Vicki Brady: Regional Australia have high expectations, as do all of our customers. That's why I do think it is timely that the ACCC conduct this inquiry. To be clear, we do not support mandated domestic roaming. We support commercial roaming, but we believe mandated domestic roaming would take away that incentive for infrastructure-based investment and competition, and would likely lead to worse outcomes in regional Australia.

Speaker #2: We support commercial roaming, but we believe mandated domestic roaming would take away that incentive for infrastructure-based investment and competition and would likely lead to worse outcomes in regional Australia.

Speaker #2: We support commercial roaming, but we believe mandated domestic roaming would take away that incentive for infra-structure-based investment and competition and would likely lead to worse outcomes in regional Australia.

Speaker #2: And we've put in place under Oliver's leadership very strong guardrails around our enterprise business and we're in a leading position on our mobile network.

Speaker #2: And so making sure we deliver value from that leading position is a focus. In terms of looking forward, look, that space, you will have customers taking up some of those panel deals.

Speaker #1: We'll go to our next question, which is from Entcho Raykovski from Evans & Partners. Entcho.

Speaker #1: We'll go to our next question, which is from Entra Łękowski from Evan & Partners. Entro.

Speaker #3: Thanks, Nathan. Morning, everyone. So my first question is around mobile. I'm just curious, where you think we are at the moment in the postpaid market cycle?

Speaker #2: We've seen it pass through in this half, and as I said, we continue to really manage the enterprise business under importantly guardrails that we think reflect the position and the leadership we have particularly in the mobile space.

Speaker #3: Thanks, Nathan. Morning, everyone. So my first question is around mobile. I'm just curious, where you think we are at the moment in the post-paid market cycle?

Nathan Burley: We'll go to our next question, which is from Entcho Raykovski from E&P Financial Group. Encho.

Nathan Burley: We'll go to our next question, which is from Entcho Raykovski from Evans and Partners. Encho.

Entcho Raykovski: Thanks, Nathan. Morning, everyone. My first question is around mobile. I'm just curious where you think we are at the moment in the post-paid market cycle. What I mean by that is, do you think the post-paid market as a whole can continue to absorb higher prices from here? I'm conscious that the other MNOs have also increased prices recently. But then, obviously, your Telstra-branded subs are down, I think, about 47,000 SIOs in H2. Given that you're seeing growth in wholesale, can you perhaps talk about the margin differential between post-paid and wholesale, just to give us an idea of the wholesale growth that's required to offset any post-paid declines, given that portfolio approach that you've spoken about? So that's my first question. My second question around the Aura Network. The increase in Aura Network spend by AUD 200 million.

Entcho Raykovski: Thanks, Nathan. Morning, everyone. My first question is around mobile. I'm just curious where you think we are at the moment in the post-paid market cycle. What I mean by that is, do you think the post-paid market as a whole can continue to absorb higher prices from here? I'm conscious that the other MNOs have also increased prices recently. But then, Telstra branded subs are down, I think about 47,000 SIOs in H2. Given that you're seeing growth in wholesale, can you perhaps talk about the margin differential between post-paid and wholesale, just to give us an idea of the wholesale growth that's required to offset any post-paid declines, given that portfolio approach that you've spoken about? That's my first question. My second question is around the Aura network. The increase in Aura network spend by AUD 200 million.

Speaker #3: And what I mean by that is, do you think the postpaid market as a whole can continue to absorb higher prices from here? I mean, I'm conscious of the other M&Os have also increased prices recently as well, but then obviously Telstra branded subs are down.

Speaker #3: And what I mean by that is, do you think the post-paid market as a whole can continue to absorb higher prices from here? I mean, I'm conscious of the other M&Os have also increased prices recently as well, but then obviously Telstra branded subs are down.

Speaker #2: But Michael, did you want to add anything on those?

Speaker #1: Well, I'd just say on enterprise we saw the big drop from the first half to the second half. We have seen the work that's been done has we've seen some stability sequentially on APU.

Vicki Brady: And as I said, we continue to really manage the Enterprise business under importantly guardrails that we think reflect the position and the leadership we have, particularly in the mobile space. But Michael, did you want to add anything on those?

Speaker #3: I think about 47,000 SIOs in QH. So then given that you're seeing growth in wholesale, can you perhaps talk about the margin differential between postpaid and wholesale, just to give us an idea of the wholesale growth that's required to offset any postpaid declines, given that portfolio approach that you've spoken about?

Speaker #3: I think about 47,000 SIOs in two age. So then given that you're seeing growth in wholesale, can you perhaps talk about the margin differential between post-paid and wholesale, just to give us an idea of the wholesale growth that's required to offset any post-paid declines given that portfolio approach that you've spoken about?

Speaker #1: In enterprise, which gives us some confidence. But I would reiterate, it's very competitive it's a very dynamic market. And we are working hard within those commercial guardrails to really get value for our mobile network across the enterprise segment.

Michael Ackland: Well, I would just say on Enterprise, we saw the big drop from the H1 to the H2. We have seen the work that has been done. We have seen some stability sequentially on ARPU in Enterprise, which gives us some confidence. But I would reiterate, it is very competitive. It is a very dynamic market. And we are working hard within those commercial guardrails to really get value for our mobile network across the Enterprise segment, and the team are doing a fantastic job.

Speaker #1: And the team are doing a fantastic job.

Speaker #3: So that's my first question. And then the second question around the Aura network, so the increase in Aura network spend by 200 million you've obviously spoken about confidence in returns, but just how do you think about the returns on that additional spend?

Speaker #3: So that's my first question. And then the second question around the AURA network, so the increase in AURA network spend by 200 million you've obviously spoken about confidence in returns, but just how do you think about the returns on that additional spend?

Speaker #2: And then on BAU capex, yes. So our focus is reallocating inside our BAU capex. And so where is that coming from? We've been doing a lot of work over multiple years in our IT environment.

Speaker #2: We obviously announced last year some big changes as well, where we consolidated down from about 400 IT software partners to two. So we're driving efficiency in terms of our spend on IT.

Speaker #3: And is there some compression given the inflationary pressures? But I suppose, just to be clear there, I don't know if it's just inflation or whether there's any expansion factored into that increase.

Speaker #3: And is there some compression given the inflationary pressures? And I suppose, just to be clear there, I don't know if it's just inflation or whether there's any expansion factored into that increase.

Vicki Brady: Mm. And then on BAU CapEx, yes. So our focus is reallocating inside our BAU CapEx. So where is that coming from? We have been doing a lot of work over multiple years in our IT environment. We obviously announced last year some big changes as well, where we consolidated down from about 400 IT software partners to two. So we are driving efficiency in terms of our spend on IT. We are also nearing the point where we will complete the migration of our consumer customers into our new stack. So one of the areas where some of that reallocation comes is in our IT spend. But Michael, you might want to jump in and give any more color as well.

Entcho Raykovski: You've obviously spoken about confidence in returns, but just how do you think about the returns on that additional spend, and is there some compression given the inflationary pressures? I suppose just to be clear there, I don't know if it's just inflation or whether there's any expansion factored into that increase. As part of the answer to that question, if you're able to talk about how you think about the timing of free cash flow coming from the project. Thank you.

Vicki Brady: And then on BAU CapEx, yes. So our focus is reallocating inside our BAU CapEx. So where is that coming from? We have been doing a lot of work over multiple years in our IT environment. We obviously announced last year some big changes as well, where we consolidated down from about 400 IT software partners to two. So we are driving efficiency in terms of our spend on IT. We are also nearing the point where we will complete the migration of our consumer customers into our new stack. So one of the areas where some of that reallocation comes is in our IT spend. But Michael, you might want to jump in and give any more color as well.

Entcho Raykovski: You've obviously spoken about confidence in returns, but just how do you think about the returns on that additional spend? Is there some compression given the inflationary pressures? I suppose just to be clear there, I don't know if it's just inflation or whether there's any expansion factored into that increase. As part of the answer to that question, if you're able to talk about how you think about the timing of free cash flow coming from the project. Thank you.

Speaker #3: And just as part of the answer to that question, if you're able to talk about how you think about the timing of free cash flow coming from the project.

Speaker #2: We're also nearing the point where we will complete the migration of our consumer customers into our new stack. And so one of the areas where some of that reallocation comes is in our IT spend.

Speaker #3: Thank you.

Speaker #2: Right. Thanks, Entcho, for that. Just on mobile, I'll make some comments and then Michael may want to jump in as well. I think the thing I'd say overall, our focus in our mobile business is always how do we keep investing, innovating, delivering great outcomes and experiences, and value for our customers.

Speaker #2: Great. Thanks, Entro, for that. Just on mobile, I'll make some comments and then Michael may want to jump in as well. I think the thing I'd say overall, our focus in our mobile business is always how do we keep investing, innovating, delivering great outcomes and experiences and value for our customers?

Speaker #2: But Michael, you might want to jump in and give any more color as well.

Vicki Brady: Great. Thanks, Encho, for that. Just on mobile, I'll make some comments, and then Michael may want to jump in as well. I think the thing I'd say, overall, our focus in our mobile business is always how do we keep investing, innovating, delivering great outcomes and experiences and value for our customers. That goes to the network, it goes to how customers engage with us, whether it's in store or online, over the phone, whether it's our brand and our propositions. Look, I think overall, the thing we keep seeing mobile more broadly, obviously the utility and the reliance on that continues to grow. You've seen, yes, we have recently put pricing changes through. Obviously, that's important when we're continuing to invest to be able to deliver for our customers. As you said, we do look at a portfolio of our business.

Speaker #1: Yeah, no, I mean, I think you've covered it. We're prioritizing and it's a difficult prioritization, but that is the way we are leaning into it.

Vicki Brady: Great. Thanks, Encho, for that. Just on mobile, I'll make some comments and then Michael may want to jump in. I think the thing I'd say, overall, our focus in our mobile business is always how do we keep investing, innovating, delivering great outcomes and experiences and value for our customers. That goes to the network. It goes to how customers engage with us, whether it's in store or online, over the phone, whether it's our brand and our propositions. Look, I think overall, the thing we keep seeing mobile more broadly, obviously the utility and the reliance on that continues to grow. You've seen, yes, we have recently put pricing changes through. Obviously, that's important when we're continuing to invest to be able to deliver for our customers. As you said, we do look at a portfolio of our business.

Speaker #1: We are being disciplined that we're reallocating spend into this space. It's incredibly important. And I think Vicky hit the areas that will be the focus.

Speaker #2: And that goes to the network. It goes to how customers engage with us, whether it's in store or online, over the phone. Whether it's our brand and our propositions.

Speaker #2: And that goes to the network. It goes to how customers engage with us, whether it's in store, online, over the phone. Whether it's our brand and our propositions.

Michael Ackland: Yeah, no. I think you have covered it. We are prioritizing, and it is a difficult prioritization, but that is the way we are leaning into it. We are being disciplined, that we are reallocating spend into this space. It is incredibly important. And I think Vicki hit the areas that will be the focus. But yeah, it is a reprioritization.

Speaker #1: But yeah, it's a reprioritization.

Speaker #2: And then finally on FTE, the biggest change that's happened is absolutely in May last year when we announced job impacts. They have flowed through.

Speaker #2: So look, I think overall, the thing we keep seeing mobile more broadly, obviously the utility and the reliance on that continues to grow. You've seen, yes, we have recently put pricing changes through, obviously that's important when we're continuing to invest to be able to deliver.

Speaker #2: I think that's the biggest element driving the change that you can see in the overall numbers. In terms of second half, it's a dynamic environment, particularly in Oliver's space.

Vicki Brady: Look, I think overall, the thing we keep seeing mobile more broadly, obviously the utility and the reliance on that continues to grow. You've seen, yes, we have recently put pricing changes through. Obviously, that's important when we're continuing to invest to be able to deliver for our customers. As you said, we do look at a portfolio of our business.

Vicki Brady: And then finally on FTE. The biggest change that has happened is absolutely in May last year when we announced job impacts, where they have flowed through. I think that is the biggest element driving the change that you can see in the overall numbers. In terms of H2, it is a dynamic environment, particularly in Oliver's space. We have committed that we have to manage our business to match the market demands and what is happening. So I would expect, and there is actually a consultation underway, smaller scale at the moment, but inside our Enterprise business, just as we respond to market demands and make sure we have got our cost base and resourcing aligned to where the opportunities are. Anything else on FTE?

Speaker #2: For our customers, and as you said, we do look at a portfolio of our business. Michael, I don't know if you want to add some more comments around mobile and the portfolio.

Speaker #2: And we've committed that we have to manage our business to match the market demands and what's happening. So I would expect, and there is actually a consultation underway, smaller scale at the moment, but inside our enterprise business, just as we respond to market demands and make sure we've got our cost base and resourcing aligned to where the opportunities are anything else on FTE?

Speaker #4: Yeah. I mean, no, thanks again. Thanks, Entcho. I'd probably point to a couple of things. Entcho, one is I think the trend that you point out, it's not recent.

Speaker #4: Yeah. I mean, no, thanks again. Thanks, Entro. I'd probably point to a couple of things. Entro, one is I think the trend that you point out, it's not recent.

Vicki Brady: Michael, I do not know if you want to add some more comments around mobile and the portfolio.

Vicki Brady: Mike, I do not know if you want to add some more comments around mobile and the portfolio.

Michael Ackland: Yeah. No, thanks, Vicki, and thanks, Entcho. I would probably point to a couple of things. Entcho, one is, I think the trend that you point out, it is not recent. We have seen that trend with the growth being at the lower end of the market for some time, and we are seeing considerable growth in our prepaid business off the back of that, as well as in our wholesale and as well as in our Boost and Belong business. But we still remain very confident in the proposition that we are offering in post-paid. We continue to invest in that proposition as we have with offering satellite, as we have with the benefits with the loyalty program across our branded offerings, with the store network, and our investments in our digital channels, and the improvements there. If you do, however, we are seeing strong growth in wholesale.

Speaker #4: It's been we've seen that trend with the growth being at the lower end of the market for some time. And we've seen considerable growth in our prepaid business off the back of that, as well as in our wholesale and as well as in our boost and belong business.

Michael Ackland: Yeah. No, thanks, Vicki, and thanks, Encho. I would probably point to a couple of things. Encho, one is, I think the trend that you point out, it is not recent. We have seen that trend with the growth being at the lower end of the market for some time. We are seeing considerable growth in our prepaid business off the back of that, as well as in our wholesale and as well as in our Boost and Belong business. But we still remain very confident in the proposition that we are offering in post-paid. We continue to invest in that proposition as we have with offering satellite, as we have with the benefits with the loyalty program across our branded offerings, with the store network and our investments in our digital channels, and the improvements there. If you do, however, we are seeing strong growth in wholesale.

Speaker #1: No, I don't think so.

Speaker #2: Thank you. Thanks, Tom.

Speaker #4: But we still remain very confident in the proposition that we're offering in postpaid. And we continue to invest in that proposition as we have with offering satellite as we have with the benefits with the loyalty program across our branded offerings with the store network and our investments in our digital channels and the improvements there.

Speaker #3: Okay, we'll go to the next question, which is from Roger Samuel from Jefferies. Go ahead, Roger.

Speaker #4: But we still remain very confident in the proposition that we're offering in post-paid. And we continue to invest in that proposition as we have with offering satellite as we have with the benefits with the loyalty program across our branded offerings with the store, network, and our investments in our digital channels and the improvements.

Speaker #4: Oh, hi, morning all. I'll stick to three questions as well. And thanks for the disclosure on Royke as well. Just on that, I understand that you're aiming to grow your Royke over time, but is there a risk that the Royke could be flat in the short term?

Michael Ackland: No, I do not think so.

Vicki Brady: Thank you. Thanks, Tom.

Michael Ackland: We continue to invest in that proposition as we have with offering satellite, as we have with the benefits with the loyalty program across our branded offerings, with the store network and our investments in our digital channels, and the improvements there. If you do, however, we are seeing strong growth in wholesale.

Nathan Burley: Okay. We will go to the next question, which is from Roger Samuel from Jefferies. Go ahead, Roger.

Speaker #4: There. If you do, however, we are seeing strong growth in wholesale. And that is on price and volume. And you've seen the wholesale ARPU growth 8.8% this year compared to our post-paid handheld ARPU growth of 3.8%.

Speaker #4: If you do, however, we are seeing strong growth in wholesale. And that is on price and volume. And you've seen the wholesale APU growth 8.8% this year compared to our postpaid handheld APU growth of 3.8%.

Speaker #4: Mainly because of the strategic investments in intercity fiber assets, which seem to be peaking in FY25 and 26. And also, coupled with your 700 mil yeah, 700 mil in your investment in AI, how should we expect the shape of Royke in the short term?

Roger Samuel: Oh, hi. Morning, all. I will stick to three questions as well. Thanks for the disclosure on ROIC as well. Just on that, I understand that you are aiming to grow your ROIC over time, but is there a risk that the ROIC could be flat in the short term, mainly because of the strategic investments into intercity fiber assets, which seems to be peaking in FY25 and FY26, and also coupled with your AUD 700 million in your investment in AI. How should we expect the shape of ROIC in the short term? Second question is on Fixed Enterprise. I am just wondering how confident you are that the EBITDA has stabilized from this point. Can we be confident that the worst is over now? If things get worse, can you actually sell the NAS business?

Michael Ackland: But that is on price and volume, and you see the wholesale ARPU growth 8.8% this year compared to our post-paid handheld ARPU growth of 3.8%. So we are continuing to manage that portfolio. I think it also points to our vision around NAP. NAP, one of our objectives there is to provide reasons, more reasons and other reasons and different reasons around network experience for customers to choose us and to choose to buy plans that give them better and different experiences for their needs. That is a core to our CF 30 strategy. So absolutely, we recognize the trend. We are seeing ARPU growth at the bottom end that is going quicker than at the top end. We are looking at part of our CF 30 strategy, and NAP is about helping to create that differentiation, a new differentiation into the future.

Speaker #4: So we're continuing to manage that portfolio. I think it also points to our vision around NAP and NAP one of our objectives there is to provide reasons more reasons and other reasons and different reasons around network experience for customers to choose us and to choose to buy plans that give them better and different experiences for their needs.

Speaker #4: So we're continuing to manage that portfolio. I think it also points to our vision around NAP and NAP one of our objectives there is to provide reasons, more reasons, and other reasons and different reasons around network experience for customers to choose us and to choose to buy plans that give them better and different experiences for their needs.

Michael Ackland: That is on price and volume. You see the wholesale ARPU growth 8.8% this year compared to our post-paid handheld ARPU growth of 3.8%. So we are continuing to manage that portfolio. I think it also points to our vision around NAP. NAP, one of our objectives there is to provide reasons, more reasons and other reasons and different reasons around network experience for customers to choose us and to choose to buy plans that give them better and different experiences for their needs. That is a core to our CF30 strategy. Absolutely, we recognize the trend. We are seeing ARPU growth at the bottom end that is going quicker than at the top end.

Speaker #4: Second question, is on fixed enterprise and I'm just wondering how confident you are that the EBITDA has stabilized from this point. Can we be confident that the worst is over now?

Speaker #4: And that is a core to our CF30 strategy. So absolutely, we recognize the trend. We are seeing APU growth at the bottom end that's going quicker than at the top end.

Speaker #4: And that is a core to our CF30 strategy. So absolutely, we recognize the trend. We are seeing ARPU growth at the bottom end that's going quicker than at the top end.

Speaker #4: And if things get worse, can you actually sell the NAS business? Thirdly, just on NBN, I just want disclosed your NBN margin in your fixed CNSB.

Speaker #4: And we are looking at part of our CF30 strategy and NAP is about helping to create that differentiation and new differentiation into the future.

Speaker #2: Thanks, Michael. And then Entcho, your question on the Aura network, as you call out, we have spoken today about that additional 200 million dollars up to 200 million dollars to complete the Aura network.

Speaker #2: Thanks, Michael. And then Entro, your question on the AURA network, as you call out, we have spoken today about that additional 200 million dollars up to 200 million dollars to complete the AURA network.

Michael Ackland: We are looking at part of our CF30 strategy, and NAP is about helping to create that differentiation, a new differentiation into the future.

Speaker #4: Thank you.

Vicki Brady: Thanks, Michael. Entcho, your question on the Aura network. As you call out, we have spoken today about that additional AUD 200 million, up to AUD 200 million to complete the Aura network. Just to be clear, we did announce this, it was back in February 2022. We announced that we would embark on the Aura build. Through it, we have learnt a lot. Through that, we have had to be disciplined and make choices and trade-offs. There are no additional routes, just to be clear inside that. It is inside the scope of the build we announced back in February 2022. It is fair to say, yeah, inflationary pressures have been there higher than we would have anticipated. We have obviously talked very openly about the ability to have to navigate a lot of approval processes and dynamics when you are rolling out a build of this scale.

Speaker #2: Thanks, Roger, for that. I might get Michael to come back and do Royke. Why don't I just talk a little bit about fixed enterprise?

Speaker #2: And just to be clear, we did announce this it was back in February '22. We announced that we would embark on the Aura build.

Vicki Brady: Thanks, Michael. Encho, your question on the Aura network. As you call out, we have spoken today about that additional up to AUD 200 million to complete the Aura network. Just to be clear, we did announce this, it was back in February 2022. We announced that we would embark on the Aura build, and through it, we have learned a lot. Through that, we have had to be disciplined and make choices and trade-offs. There are no additional routes, just to be clear, inside that. It is inside the scope of the build we announced back in February 2022. It is fair to say, inflationary pressures have been there higher than we would have anticipated. We have obviously talked very openly about the ability to have to navigate a lot of approval processes and dynamics when you are rolling out a build of this scale.

Speaker #2: And just to be clear, we did announce this it was back in February 2022. We announced that we would embark on the AURA build.

Roger Samuel: Thirdly, just on NBN, I just want to check if you disclose your NBN margins.

Speaker #2: I just make sure I captured all of the elements in that. So when we look at the fixed enterprise business, a couple of things to call out.

Speaker #2: And through it, we've learned a lot. And through that, we've had to be disciplined and make choices and trade-offs there are no additional routes just to be clear inside that.

Speaker #2: And through it, we've learned a lot. And through that, we've had to be disciplined and make choices and trade-offs. There are no additional routes just to be clear inside that.

Michael Ackland: In your fixed C&SB. Thank you.

Speaker #2: Firstly, the structural declines in our DAC business and in the calling business that sit inside NAS. Those structural declines are ongoing. And I would call out in our DAC business, it can move around a little bit half to half.

Vicki Brady: Thanks, Roger, for that. I might get Michael to come back and do ROIC. Why don't I just talk a little bit about Fixed Enterprise? Just make sure I captured all of the elements in that. When we look at the Fixed Enterprise business, couple of things to call out. Firstly, the structural declines in our DAC business and in the calling business that sit inside NAS. Those structural declines are ongoing. I would call out in our DAC business, it can move around a little bit half to half, again, driven by customers that might be renewing, changes happening in that customer base. Oliver might want to come back and add a little bit of that. In terms of NAS, our reset of the enterprise business is ongoing.

Speaker #2: It is inside the scope of the build we announced back in February '22. It's fair to say, yeah, inflationary pressures have been there, higher than we would have anticipated.

Speaker #2: It is inside the scope of the build we announced back in February 2022. It's fair to say, yeah, inflationary pressures have been there, higher than we would have anticipated.

Vicki Brady: There are no additional routes, just to be clear, inside that. It is inside the scope of the build we announced back in February 2022. It is fair to say, inflationary pressures have been there higher than we would have anticipated. We have obviously talked very openly about the ability to have to navigate a lot of approval processes and dynamics when you are rolling out a build of this scale.

Speaker #2: We've obviously talked very openly about the ability to have to navigate a lot of approval processes and dynamics when you're rolling out a build of this scale.

Speaker #2: Again, driven by customers that might be renewing, changes happening in that customer base. Oliver might want to come back and add a little bit of that.

Speaker #2: And then in terms of NAS, our reset of the enterprise business is ongoing. And we've been very open that our focus is making sure we're absolutely focused on the core of our business and things sit close to that core where we really have competitive advantage.

Speaker #2: Almost 14,000 kilometers of fiber getting laid across the country. We've taken those lessons. The team have managed it in a very disciplined way. But as we've got to just over the halfway mark, it was the right point to say, okay, we think it is going to take a little bit extra to complete that build.

Vicki Brady: Almost 14,000 kilometers of fiber getting laid across the country. We have taken those lessons. The team have managed it in a very disciplined way. But as we have got to just over the halfway mark, it was the right point to say, okay, we think it is going to take a little bit extra to complete that build. But importantly, we have seen, particularly the last 6 months, it is a significant lift in terms of our sales pipeline and the level of demand we are seeing. So, we remain very confident in those mid-teens IRRs and around the 9-year payback. The incremental AUD 200 free cash flow will depend on deals. I do not know, Michael, if there is anything more to add on that.

Vicki Brady: Almost 14,000 kilometers of fiber getting laid across the country. We have taken those lessons. The team have managed it in a very disciplined way. As we have got to just over the halfway mark, it was the right point to say, okay, we think it is going to take a little bit extra to complete that build. Importantly, we have seen, particularly the last six months, it is a significant lift in terms of our sales pipeline and the level of demand we are seeing. So, we remain very confident in those mid-teens IRRs and around the nine-year payback. The incremental 200 free cash flow will depend on deals. I do not know, Michael, if there is anything more to add on that.

Speaker #2: And we can differentiate for our customers. As part of that, that does mean a full assessment of all of the elements that sit inside our NAS business.

Speaker #2: But importantly, we have seen particularly the last six months, it is a significant lift in terms of our sales pipeline and the level of demand we're seeing.

Vicki Brady: We have been very open that our focus is making sure we are absolutely focused on the core of our business, and things sit close to that core where we really have competitive advantage, and we can differentiate for our customers. As part of that does mean a full assessment of all of the elements that sit inside our NAS business. I think Michael mentioned in his comments this morning, that could involve a range of options, including exit divestments. That work is ongoing, so there is nothing to announce on that. We continue to work through very open-minded in what is the right way forward there. In terms of NBN margin, I do not think we disclosed it today. Our NBN resale margin continues to sit in the low double digits.

Speaker #2: And I think Michael mentioned in his comments this morning that could involve a range of options, including exit divestments. That work is ongoing, so there's nothing to announce on that.

Speaker #2: And so we remain very confident in those mid-teens IRRs and around the nine-year payback. The incremental 200 free cash flow will depend on deals.

Speaker #2: But we continue to work through very open-minded in what's the right way forward there. In terms of NBN margin, I don't think we disclosed it today.

Speaker #2: I don't know, Michael, if there's anything more to add on that.

Speaker #4: No, not really. I mean, I think what we've seen Entcho is that significant uplift in pipeline is more than enough to deliver the returns that we need on the additional capex.

Speaker #4: No, not really. I mean, I think what we've seen Entro is that significant uplift in pipeline is more than enough to deliver the returns that we need on the additional capex.

Speaker #2: But our NBN resale margin continues to sit sort of in the low double digits.

Michael Ackland: No, not really. I think what we have seen, Entcho, is that significant uplift in pipeline is more than enough to deliver the returns that we need on the additional CapEx. As Vicki said, the cash flow on these can be very lumpy. The free cash flow can be very lumpy on these deals, as you probably understand in the way they work, much like subsea cable. Many of these deals will involve a one-time charge in the first few years of ready-for-service that would represent a reasonable proportion of the total contract value. So the cash flow could be a little bit lumpy as it comes in, and we will manage that as those deals get signed, and we can disclose them.

Speaker #1: Double digits, yep.

Speaker #2: So that's held. But why don't I go to Michael and then Oliver may want to make a comment on TE fixed as well.

Michael Ackland: No, not really. I think what we have seen, Encho, is that significant uplift in pipeline. It is more than enough to deliver the returns that we need on the additional CapEx. As Vicki said, the cash flow on these can be very lumpy. The free cash flow can be very lumpy on these deals, as you probably understand in the way they work, much like subsea cable. Many of these deals will involve a one-time charge in the first few years of ready-for-service that would represent a reasonable proportion of the total contract value. So the cash flow could be a little bit lumpy as it comes in, and we will manage that as those deals get signed, and we can disclose them.

Speaker #4: As Vicki said, the cash flow on these can be very lumpy. The free cash flow can be very lumpy on these deals as you probably understand in the way they work, much like subsea cable, many of these deals will involve a one-time charge in the first few years of ready for service.

Speaker #4: As Vicky said, the cash flow on these can be very lumpy. The free cash flow can be very lumpy on these deals as you probably understand in the way they work, much like subsea cable, many of these deals will involve a one-time charge.

Speaker #1: Yeah, well, one of the comments quickly on Royke and Royke involves growing NOPAT and managing invested capital. So you're calling out all the right points, which is, as we invest more, that will impact invested capital.

Michael Ackland: Double digits. Yep.

Vicki Brady: That has held. Why do I go to Michael, and then Oliver may want to make a comment on TE Fixed as well.

Speaker #4: In the first few years of ready for service, that would represent a reasonable proportion of the total contract value. So the cash flow could be a little bit lumpy as it comes in.

Speaker #1: And particularly if you look at inner-city fiber, we're now seeing, we think, the peak investments would be 26 and 27 rather than 25 and 26.

Speaker #4: That would represent a reasonable proportion of the total contract value. So the cash flow could be a little bit lumpy as it comes in.

Michael Ackland: Well, why do I comment quickly on ROIC. ROIC involves growing NOPAT and managing invested capital. You are calling out all the right points, which is as we invest more, that will impact invested capital. Particularly if you look at intercity fiber, we are now seeing, we think the peak investments will be 2026 and 2027 rather than 2025 and 2026. They are long-term investments, and we manage them in an incredibly disciplined way around making sure that we are maximizing the IRR on those investments. They do impact our invested capital, but they also generate earnings.

Speaker #4: And we'll have to we'll manage that as those deals get signed and we can disclose them.

Speaker #1: But they are long-term investments. And we manage them in incredibly disciplined way around making sure that we are maximizing the IRR on those investments.

Speaker #1: We'll go to our next question.

Speaker #1: We'll go to our next slide.

Speaker #3: Okay, great. Thank you.

Speaker #1: Thanks, Entcho. We'll go to our next question which is from Suraj Ahmed from City.

Speaker #1: Thanks, Entro. We'll go to our next question which is from Shiraz Ahmed from City.

Speaker #1: But they do impact our invested capital, but they also generate earnings. So I'm not providing any forward guidance on where Royke would be, but we are focused on ensuring that we are being disciplined on both sides of that equation, the top line and the bottom line of the Royke fraction to make sure that we're pulling all those levers and being disciplined that we're getting the returns that we need on every incremental investment.

Nathan Burley: We will go to our next.

Michael Ackland: Okay, great. Thank you.

Speaker #3: Hey, thanks. I have two questions as well. This first one, just on mobile, just following up, right? I mean, have you actually seen the churn trends stabilize in FY27?

Speaker #3: Hey, thanks. I have two questions as well. Just first one, just on mobile, just following up, right? I mean, have you actually seen the churn trends stabilize in FY27?

Nathan Burley: Thanks, Entcho Raykovski. We will go to our next question, which is from Siraj Ahmed from Citi.

Nathan Burley: We will go to our next.

Michael Ackland: Okay, great. Thank you.

Entcho Raykovski: Okay, great. Thank you.

Nathan Burley: Thanks, Encho. We will go to our next question, which is from Shiraz Ahmed from Citi.

Siraj Ahmed: Hi, thanks. I have two questions as well. This first one, just on mobile, just following up. Have you actually seen the churn trends stabilize in FY27? I guess, H2 not surprising given the price increase. Second part to that, a bit surprised that postpaid ARPU is actually down half on half. Can you elaborate on that and how you think it would ARPU growth next year in 2027? Second part, Vicki, just on the LEO satellite and I guess the threat from Rymor. You have an ARPU premium over your competitors. Keen to understand if you can actually split that premium into how you think about network coverage versus quality versus brand or trust. Would network coverage be the key part? Is your view that network coverage part could compress over time, but you can gradually expand the other parts? Thanks.

Speaker #3: I guess I'm second half, not surprising given the price increase. And second part to that, a bit surprised that postpaid APU is actually down half and half.

Speaker #3: I guess I'm second off, not surprising given the price increase. And second part to that, a bit surprised that post-paid ARPU is actually down half and half.

Shiraz Ahmed: Hi. Thanks. I have two questions as well. This first one, just on mobile, just following up. Have you actually seen the churn trends stabilize in FY27? I guess, H2 not surprising given the price increase. Second part to that, a bit surprised that postpaid ARPU is actually down H1 on H2. Can you elaborate on that and how you think it would ARPU growth next year in 2027? Second part, Vicki, just on that whole, on the LEO satellite and I guess, the threat from Eomer. You have an ARPU premium over your competitors. Keen to understand if you can actually split that premium into how you think about network coverage versus quality versus brand or trust. Would network coverage be the key part? Is your view that the network coverage part could compress over time, but you can potentially expand the other parts? Thanks.

Siraj Ahmed: Hi. Thanks. I have two questions as well. This first one, just on mobile, just following up. Have you actually seen the churn trends stabilize in FY27? I guess, H2 not surprising given the price increase. Second part to that, a bit surprised that postpaid ARPU is actually down H1 on H2. Can you elaborate on that and how you think it would ARPU growth next year in 2027? Second part, Vicki, just on that whole, on the LEO satellite and I guess, the threat from Eomer. You have an ARPU premium over your competitors.

Speaker #3: Can you elaborate on that and how you think it would APU growth next year in '27? And second part, Vicki, just on that whole on the Leo sat and I guess the threat from Yoma would you be able to split your I mean, you have an APU premium over your competitors.

Speaker #3: Can you elaborate on that and how you think it would ARPU growth next year in 2027? And second part, Vicky, just on that whole on the Leo sat and I guess the threat from Yoma would you be able to split your I mean, you have an ARPU premium over your competitors.

Michael Ackland: I am not providing any forward guidance on where ROIC would be, but we are focused on ensuring that we are being disciplined on both sides of that equation, the top line and the bottom line of the ROIC fraction, to make sure that we are pulling all those levers and being disciplined, that we are getting the returns that we need on every incremental investment.

Speaker #2: And just as we hand over, Nathan, it might be worth getting Brad to comment on the fixed business in CNSB as well as Oliver on enterprise.

Speaker #3: Yeah, happy to pick that up. Good morning, everybody. Yeah, I'd say we had another very strong half for the fixed business. We saw significant uplift in ARPU right around 7%.

Speaker #3: Can you understand if you can actually split that premium into how you think about network coverage versus quality versus brand or trust? Would network coverage be the key part?

Speaker #3: Keen to understand if you can actually split that premium into how you think about network coverage versus quality versus brand or trust. Would network coverage be the key part?

Vicki Brady: Just as we hand over, Nathan, it might be worth getting Brad to comment on the Fixed business in C&SB as well as Oliver on Enterprise.

Speaker #3: That's a combination of pricing moves that we've made over the last period of time and also a pleasing shift in mix up into higher speed tiers.

Speaker #3: And given and is your view that network coverage part could compress over time, but you can potentially expand the other parts? Thanks.

Siraj Ahmed: Keen to understand if you can actually split that premium into how you think about network coverage versus quality versus brand or trust. Would network coverage be the key part? Is your view that the network coverage part could compress over time, but you can potentially expand the other parts? Thanks.

Brad Whitcomb: Yeah, happy to pick that up. Good morning, everybody. I would say we had another very strong H1 for the Fixed business. We saw significant uplift in ARPU, right around 7%. That is a combination of pricing moves that we have made over the last period of time, and also a pleasing shift in mix up into higher speed tiers, which is part of our overall strategy. We have also made really strong inroads from a cost perspective, and that is primarily around automation. Vicki mentioned digital migration and how important that is. It yields really strong benefits across the customer journey, the customer experience, but also the cost to serve. We continue to leverage technologies like SmartFix, which enables us to identify issues even before the customer even knows about it and get it fixed.

Speaker #2: Thank you. Well, why don't I I might take the second question first and then I'll hand over to Michael and I presume Brad as well might be good to contribute into the discussion too around what we're seeing in mobile particularly churn APU various things.

Speaker #3: Which is part of our overall strategy. We've also made really strong inroads from a cost perspective, and that's primarily around automation. So Vicki mentioned digital migration and how important that is.

Vicki Brady: Well, why do I might take the second question first, and then I will hand over to Michael and, I presume Brad as well, might be good to contribute into the discussion too around what we are seeing in mobile, particularly churn, ARPU, various things. So yeah, just in terms of the, I know it is a big topic of conversation, obviously, LEO satellite. You are right. We are the premium provider in the market in terms of mobile and have been over an extended period of time. Of course, we do monitor that. We understand our customer needs. We are always looking at making sure we are investing and delivering to be able to really demonstrate the value. Obviously, more customers continue to choose us and stay with us. So getting that balance right is obviously critical alongside our portfolio. So we have the Telstra brand.

Speaker #3: It yields really strong benefits across the customer journey, the customer experience, but also the cost to serve. We continue to leverage technologies like Smart Fix, which enables us to identify issues even before the customer even knows about it and get it fixed and in that prevents the customer from needing to call us and roll the truck, et cetera.

Vicki Brady: Well, why do not I take the second question first, and then I will hand over to Michael and, I presume Brad as well, might be good to contribute into the discussion too around what we are seeing in mobile, particularly churn, ARPU, various things. So yeah, just in terms of the I know it is a big topic of conversation, obviously, LEO satellite. You are right. We are the premium provider in the market in terms of mobile and have been over an extended period of time. Of course, we do monitor that. We understand our customer needs. We are always looking at making sure we are investing and delivering to be able to really demonstrate the value. Obviously, more customers continue to choose us and stay with us. So getting that balance right is obviously critical alongside our portfolio. So we have the Telstra brand.

Speaker #2: So yeah, just in terms of the I know it's a big topic of conversation. Obviously, Leo satellite. You're right. I mean, we are the premium provider in the market in terms of mobile.

Speaker #2: And have been over an extended period of time. Of course, we do monitor that. We understand our customer needs. We're always looking at making sure we're investing in delivering to be able to really demonstrate the value and obviously more customers continue to choose us and stay with us.

Speaker #3: So overall, quite strong. You would note, though, that we continue to lose SIOs. It's been about the same rate of decline over the last two halves.

Speaker #2: And obviously, more customers continue to choose us and stay with us. So getting that balance right is obviously critical alongside our portfolio. So we have the Telstra brand.

Vicki Brady: Of course, we do monitor that. We understand our customer needs. We are always looking at making sure we are investing and delivering to be able to really demonstrate the value. Obviously, more customers continue to choose us and stay with us. So getting that balance right is obviously critical alongside our portfolio. So we have the Telstra brand.

Speaker #3: And that's a result of what we're seeing is very, very intense competition, price competition at the low end of the market. We've taken a look at that space.

Speaker #2: So getting that balance right is obviously critical alongside our portfolio. So we have the Telstra brand, we then have brands like Boost and Belong, and we have our MVNO.

Brad Whitcomb: That prevents the customer from needing to call us and roll the truck, et cetera. Overall, quite strong. You would note, though, that we continue to lose SIOs. It has been about the same rate of decline over the last two halves. That is a result of what we are seeing is very, very intense competition, price competition at the low end of the market. We have taken a look at that space. We have chosen not to engage in that area and rather focus on what we think is a unique and very compelling value proposition for the customers that we serve. So we remain absolutely resolute in building a fantastic business, but it has got to be on a foundation of very, very strong financial performance.

Speaker #2: We then have brands like Boost and Belong. And we have our MVNO. So we do have a portfolio of brands because we know the premium Telstra experience may not be for everyone.

Speaker #3: We have chosen not to engage in that area and rather focus on what we think is a unique and very compelling value proposition for the customers that we serve.

Speaker #2: So we do have a portfolio of brands because we know the premium Telstra experience may not be for everyone. And so to reach the parts of the market, we definitely need that.

Vicki Brady: We then have brands like Boost Mobile and Belong, and we have our MVNO. So we do have a portfolio of brands because we know the premium Telstra experience may not be for everyone. To reach the parts of the market, we definitely need that. We also have different products, postpaid, prepaid, even under our branded portfolio show up differently. In terms of what drives that premium in our customers' minds. Network plays a part, absolutely. Those other things you mentioned, brand, trust, security. So the level of investment we put into our networks in keeping our customers safe and the protections we put in around scams and fraud. There is a bunch of things that play into that. Michael referenced our network as a product layer of our strategy.

Speaker #2: And so to reach the parts of the market, we definitely need that. We also have different products post-paid, prepaid. Even under our branded portfolio show up differently.

Speaker #3: So we remain absolutely resolute in building a fantastic business, but it's got to be on a foundation of very, very strong financial performance. Thanks, Nathan.

Vicki Brady: We then have brands like Boost and Belong, and we have our MVNO. We do have a portfolio of brands because we know the premium Telstra experience may not be for everyone. To reach the parts of the market, we definitely need that. We also have different products, post-paid, pre-paid, even under our branded portfolio show up differently. In terms of what drives that premium in our customers' minds, network plays a part. Absolutely, those other things you mentioned, brand, trust, security. The level of investment we put into our networks in keeping our customers safe and the protections we put in around scams and fraud. There is a bunch of things that play into that. Michael referenced our network as a product layer of our strategy.

Speaker #2: We also have different products, postpaid, prepaid, even under our branded portfolio show up differently. In terms of what drives that premium in our customers' minds, network plays a part, absolutely.

Speaker #2: In terms of what drives that premium in our customers' minds, network plays a part, absolutely. Those other things you mentioned, brand, trust, security, so the level of investment we put into our networks and keeping our customers safe and the protections we put in around scams and fraud, there's a bunch of things that play into that.

Speaker #3: Thanks, Roger. So I'm pleased with where the reset is, if I look at that. We have faced into the underperformance and definitely taken decisive action.

Speaker #2: Those other things you mentioned, brand, trust, security, so the level of investment we put into our networks and keeping our customers safe and the protections we put in around scams and fraud, there's a bunch of things that play into that.

Speaker #3: We've covered off some of the areas where we've really doubled down, but on that cost element, we've obviously worked through that at pace. On the product simplification and exits, so we announced, as Vicki said in our intro, that two-thirds exit of products in NAS, and we're working our way through that.

Vicki Brady: Oli.

Nathan Burley: Oli.

Oliver Camplin-Warner: Thanks, Nathan. Thanks, Roger. I am pleased with where the reset is, if I look at that. We have faced into the underperformance and definitely taken decisive action. We have covered off some of the areas where we have really doubled down. But on that cost element, we have obviously worked through that at pace. On the product simplification and exits, we announced, as Vicki said in our intro, that two-thirds exit of products in NAS, and we are working our way through that, and we are where we wanted to be. We have brought delivery into the segment as well, and we are driving operational improvements there. Then to Michael's point earlier, just the commercial guardrails that we now have in place are very strong. We put in place a new sales incentive plan as well.

Speaker #2: Michael referenced our network as a product, layer of our strategy. That's a really important one. Because we know that customers are depending more and more on their network and their connectivity and their mobile services.

Speaker #2: Michael referenced our network as a product layer of our strategy. That's a really important one. Because we know that customers are depending more and more on their network and their connectivity and their mobile services.

Speaker #3: And we are where we wanted to be. We've bought delivery into the segment as well, and we're driving operational improvements there. And then to Michael's point earlier, just the commercial guardrails that we now have in place are very strong.

Speaker #2: So how we keep making sure as we help create more value for them, we're also sharing in that through our reinvention of commercial models.

Speaker #2: So how we keep making sure as we help create more value for them, we're also sharing in that through our reinvention of commercial models that's an important element.

Vicki Brady: That is a really important one because we know that customers are depending more and more on their network and their connectivity and their mobile services. How we keep making sure as we help create more value for them, we are also sharing in that, through our reinvention of commercial models. That is an important element. Coverage plays a part. There are a lot of other elements, and that is our constant focus to make sure we are really delivering value. Why do not I hand to Michael first on mobile, and then we will get Brad to add in.

Speaker #3: We've put in place a new sales incentive plan as well. So there's many things that we've achieved over the last six months or so, but this is a multi-year program.

Vicki Brady: That is a really important one because we know that customers are depending more and more on their network and their connectivity and their mobile services. How we keep making sure as we help create more value for them, we are also sharing in that through our reinvention of commercial models. That is an important element. Coverage plays a part. There are a lot of other elements and that is our constant focus to make sure we are really delivering value. Why do not I hand to Michael first on mobile, and then we will get Brad to add in.

Speaker #2: That's an important element. So coverage plays a part. There are a lot of other elements. And that's our constant focus to make sure we're really delivering value.

Speaker #2: So coverage plays a part. There are a lot of other elements. And that's our constant focus to make sure we're really delivering value why don't I hand to Michael first on mobile and then we'll get Brad to add in.

Speaker #3: There is still significant work ahead of us, but we are committed to that.

Speaker #2: And Nathan, sorry, I think I missed one of the questions or one of the points that Roger raised. Roger mentioned our joint venture with Accenture and that seven-year deal and the 700 million dollars.

Speaker #2: Why don't I hand to Michael first on mobile and then we'll get Brad to add in.

Speaker #4: Yeah. Why don't I comment quickly on APU because I think and Brad will as well. But just to your specific question, in the second half, we did see more of those higher than usual remediation and compensation costs go through as revenue reversals so refunds in the second half.

Speaker #4: Yeah. Why don't I comment quickly on ARPU because I think and Brad will as well. But just to your specific question, in the second half, we did see more of those higher than usual remediation and compensation costs go through as revenue reversals so refunds in the second half.

Brad Whitcomb: There is many things that we have achieved over the last six months or so, but this is a multi-year program. There is still significant work ahead of us, but we are committed to that.

Speaker #2: I did just want to clarify, on that deal, so that is currently in this year's spend, we are already making, and it does split across OPEX and CAPEX.

Michael Ackland: Yeah. Why do not I comment quickly on ARPU, because I think and Brad will as well. Just to your specific question, in the H2, we did see more of those higher than usual remediation and compensation costs go through as revenue reversals. Refunds in the H2, and that did impact ARPU. Without that, I think ARPU was broadly consistent as we went through, and then we should see the ARPU lift as we go into FY27 from the May 2026 price changes. Maybe Brad, I will hand to you to talk more broadly.

Vicki Brady: Nathan, sorry, I think I missed one of the questions or one of the points that Roger raised. Roger mentioned our joint venture with Accenture and that seven-year deal and the AUD 700 million. I did just want to clarify on that deal. That is currently in this year's spend we are already making, and it does split across OpEx and CapEx. Just as we think about that, it is not incremental versus the run rates of spend that we have currently. Sorry, Roger, we should have picked that up. Thanks, Nathan.

Speaker #2: So just as we think about that, it's not incremental. Versus the run rates of spend that we have currently. So sorry, Roger, we should have picked that up.

Speaker #4: And that did impact APU without that, I think APU was broadly consistent as we went through. And then we should see the APU lift as we go into FY27 from the May 26 price changes.

Speaker #4: And that did impact ARPU without that, I think ARPU was broadly consistent as we went through. And then we should see the ARPU lift as we go into FY27 from the May 26 price changes.

Speaker #2: Thanks, Nathan.

Speaker #5: Our next question will be from Kane Hannon from Goldman Sachs.

Speaker #4: So maybe Brad, I'll hand to you to talk more broadly.

Speaker #6: Morning, guys. Three as well. Just maybe the mobile subscriber environment, just obviously a few things happening in the market from your competitors early this year.

Speaker #1: Yeah, thanks, Michael. And maybe just to build on that a little bit, we talked about the impact of the price changes that we had.

Speaker #1: And just as a reminder, this year we had two price changes. We had one that we put we announced back in May of 2025, and that came into effect in July.

Speaker #1: And just as a reminder, this year we had two price changes. We had one that we put we announced back in May of 2025.

Speaker #6: Just interested if you could characterize how you're seeing competition currently. Whether you want to call out what the impact of the 3G shutdown was on your sub-base?

Brad Whitcomb: Yeah. Thanks, Michael. Maybe just to build on that a little bit. We talked about the impact of the price changes that we had. Just as a reminder, this year we had two price changes. We had one that we announced back in May of 2025, and that came into effect in July. Then we had a second one, which we announced in March of 2026. That one did not come into effect until May. In terms of an ARPU uplift, it is just a very small piece of the year that that would be into effect. Just kind of referring back to the earlier question around the SIOs, just as a reminder, when we put through a price change like that, we communicate to our customers. That then puts us in a period where we are dual quoting, we are establishing the price in market.

Nathan Burley: Our next question will be from Kane Hannan from Goldman Sachs.

Brad Whitcomb: Yeah. Thanks, Michael, and maybe just to build on that a little bit. We talked about the impact of the price changes that we had. Just as a reminder, this year we had two price changes. We had one that we announced back in May of 2025, and that came into effect in July. Then we had a second one, which we announced in March of 2026. That one did not come into effect until May. In terms of an ARPU uplift, it is just a very small piece of the year that would be into effect. Just referring back to the earlier question around the SIOs, just as a reminder, when we put through a price change like that, we communicate to our customers. That then puts us in a period where we are dual quoting. We are establishing the price in market.

Speaker #1: And that came into effect in July. And then we had a second one which we announced in March of 2026. That one didn't come into effect until May.

Speaker #6: Whether there's any sort of comments you can make around how January and February subscribers have been tracking with that competitive backdrop at the moment.

Kane Hannan: Morning, guys. Three as well. Just maybe the mobile subscriber environment. Just obviously a few things happening in the market from your competitors early this year. Just interested if you would characterize how you are seeing competition currently, whether you want to call out what the impact of the 3G shutdown was on your sub base, whether there is any sort of comments you can make around how January and February subscribers have been tracking with that competitive backdrop at the moment.

Speaker #1: And then we had a second one which we announced in March of 2026. That one didn't come into effect until May. So in terms of an ARPU uplift, it's just a very small piece of the year that that would be into effect.

Speaker #2: Do you want to give us the three, Kane?

Speaker #1: So in terms of an ARPU uplift, it's just a very small piece of the year that that would be into effect. Just kind of referring back to the earlier question around the silos, just as a reminder, when we put through a price change like that, we communicate to our customers that then puts us in a period where we're dual quoting.

Speaker #6: Oh. Sorry, Vicki. Just on the uses of excess free cash flow, appreciate some of the comments and discussion before. As far as there's been some debate about whether you'd look to spend on other major infra projects, subsea cables, et cetera, so just wondering if there's anything we can read into the buyback announcement today that suggests there aren't really any compelling infrastructure opportunities out there today, outside of where you've already identified.

Speaker #1: Just kind of referring back to the earlier question around the silos, just as a reminder, when we put through a price change like that, we communicate to our customers that then puts us in a period where we're dual quoting.

Brad Whitcomb: In terms of an ARPU uplift, it is just a very small piece of the year that would be into effect. Just referring back to the earlier question around the SIOs, just as a reminder, when we put through a price change like that, we communicate to our customers. That then puts us in a period where we are dual quoting. We are establishing the price in market.

Vicki Brady: Do you want to give us the three, Kane?

Speaker #1: We're establishing the price and market. And while we've gotten very good at that, it does limit our ability to trade and put offers on a price that's about to change in the market.

Kane Hannan: Sorry, Vicki. Just on the uses of excess free cash flow, appreciate the comments and discussion before. I suppose there has been some debate about whether you would look to spend on other major Infra projects, subsea cables, et cetera. Just wondering if there is anything we can read into the buyback announcement today that suggests there are not really any compelling infrastructure opportunities out there today, outside of where you have already identified. Lastly, Michael, the comment you made in the presentation around further productivity gains into the medium term. Appreciate some of the comments you made before as well, but just interested how you would frame that opportunity. I mean, are we thinking about step changes, major opportunities, through AI, or is it more about ongoing improvements that let you offset inflation going forward? Cheers.

Speaker #6: And then lastly, Michael, the comment you made, in the presentation around further productivity gains into the medium term, appreciate some of the comments you made before as well.

Speaker #1: So that does tend to suppress our acquisition a bit. Also, whenever we communicate about price, that gives customers an opportunity to sort of reappraise and decide whether they want to stay with Telstra or whether they want to stay on the plan that they're on or move to one of our sub-brands or indeed move someplace altogether.

Brad Whitcomb: While we have gotten very good at that, it does limit our ability to trade and put offers on a price that is about to change in the market. That does tend to suppress our acquisition a bit. Also, whenever we communicate about price, that gives customers an opportunity to sort of reappraise and decide whether they want to stay with Telstra, whether they want to stay on the plan that they are on, or move to one of our sub-brands, or indeed move someplace altogether. That would have an impact on our SIOs. We look at all of that and we factor that into a yield, and we are very pleased with the yield. In fact, the yield on price changes over the last two or three times we have done them has been improving.

Speaker #6: But just interested how you'd frame that opportunity. I mean, we thinking about sort of step changes, major opportunities, through AI. Or is it more about ongoing improvements that let you offset inflation, sort of going forward?

Brad Whitcomb: While we have gotten very good at that, it does limit our ability to trade and put offers on a price that is about to change in the market. That does tend to suppress our acquisition a bit. Also, whenever we communicate about price, that gives customers an opportunity to reappraise and decide whether they want to stay with Telstra, whether they want to stay on the plan that they are on, or move to one of our sub-brands, or indeed move someplace altogether. That would have an impact on our SIOs. We look at all of that, and we factor that into a yield, and we are very pleased with the yield. In fact, the yield on price changes over the last two or three times we have done them has been improving, so less spend down, and more of that ARPU is actually dropping back into the business.

Speaker #1: So that would have an impact on our silos. We look at all of that. We factor that into a yield, and we're very pleased with the yield.

Speaker #1: So that would have an impact on our silos. We look at all of that. We factor that into a yield. And we're very pleased with the yield.

Speaker #2: Yeah, thanks, Kane. Thanks for giving us all three. What I'll do is I'll get Brad in a minute to come to the mobile question around subs.

Speaker #1: And in fact, the yield on price changes over the last two or three times we've done them has been improving. So less spend down and more of that ARPU is actually dropping back into the business.

Speaker #1: And in fact, the yield on price changes over the last two or three times we've done them has been improving. So less spin down and more of that ARPU is actually dropping back into the business.

Speaker #2: Just on mobile, because you mentioned 3G shutdown, as we would expect, as you do shut down one generation of mobile, we did have services, some services disconnect at shutdown.

Brad Whitcomb: We look at all of that, and we factor that into a yield, and we are very pleased with the yield. In fact, the yield on price changes over the last two or three times we have done them has been improving, so less spend down, and more of that ARPU is actually dropping back into the business.

Speaker #1: If I think about our confidence going forward, the first place I would look is customer sentiment and how they're feeling about us. And as Vicki mentioned, we have seen our episode NPS increase by two points.

Vicki Brady: Yeah, thanks, Kane. Thanks for giving us all three. What I will do is, I will get Brad in a minute to come to the mobile question around subs. Just on mobile, because you mentioned 3G shutdown. As we would expect, as you do shut down one generation of mobile, we did have some services disconnect at shutdown. That was in the order of 190,000 services and around 30,000 of those services sat in post-paid handheld. As you can imagine, quite a lot of that sat in our IoT numbers. Just to give you some insight into how big that was. Frankly, my expectation as we headed into the closure of the 3G network, we were likely expecting that to be a little bit higher. I think the work we did, we extended the closure date a couple of times, and ourselves and Optus funded a public campaign.

Speaker #1: If I think about our confidence going forward, the first place I would look is customer sentiment and how they're feeling about us. And as Vicky mentioned, we have seen our episode NPS increase by two points.

Brad Whitcomb: Less spin down, and more of that ARPU is actually dropping back into the business. If I think about our confidence going forward, the first place I would look is customer sentiment and how they are feeling about us. As Vicki mentioned, we have seen our episode NPS increase by 2 points. We are now at a record high. We have also seen our strategic NPS increase by 2 points as well, and that is at a new record. Our customers are telling us that they are happier than they have ever been with us. We do have more mobile customers than we have ever had in the retail business, if we look across pre and post and across our various brands. We do look at this as a portfolio. As both Vicki and Michael have said, that portfolio is becoming more and more important when we think about NAP.

Speaker #2: That was in the order of 190,000 services. And around 30,000 of those services sat in postpaid handheld, as you can imagine, quite a lot of that sat in our IoT numbers.

Brad Whitcomb: If I think about our confidence going forward, the first place I would look is customer sentiment and how they are feeling about us. As Vicki mentioned, we have seen our episode NPS increase by 2 points. We are now at a record high. We have also seen our strategic NPS increase by 2 points as well, and that is at a new record. So our customers are telling us that they are happier than they have ever been with us. We do have more mobile customers than we have ever had in the retail business, if we look across pre and post and across our various brands. We do look at this as a portfolio. As both Vicki and Michael have said, that portfolio is becoming more and more important when we think about NAP.

Speaker #1: We're now at a record high. We've also seen our strategic NPS increase by two points as well. And that's at a new record. So our customers are telling us that they're happier than they've ever been with us.

Speaker #2: So just to give you some insight into how big that was. Frankly, my expectation, as we headed into the closure of the 3G network, we were likely expecting that to be a little bit higher.

Speaker #1: We do have more mobile customers than we've ever had in the retail business. If we look across pre and post and across our various brands, and we do look at this as a portfolio, as both Vicki and Michael have said, that portfolio is becoming more and more important.

Speaker #1: We do have more mobile customers than we've ever had. And the retail business, if we look across pre and post and across our various brands, and we do look at this as a portfolio, as both Vicky and Michael have said, that portfolio is becoming more and more important when we think about NAP.

Speaker #2: I think the work we did, we extended the closure date a couple of times, and ourselves are not just funded a public campaign. Actually, the numbers as we got to closure of the network, as we look back at prior closures, was relatively low.

Speaker #1: When we think about NAP, it's not just which brand, it's not just which product, but it's also the attributes that are associated with each of those.

Speaker #1: It's not just which brand. It's not just which product, but it's also the attributes that are associated with each of those. And we're starting to tile that out, I think, more and more effectively.

Speaker #1: And we're starting to tile that out, I think, more and more effectively. So we've seen an increase in ARPU. We've seen an increase in the number of customers.

Speaker #2: But absolutely, those services did come out of our numbers in the half. Just on free cash flow, I'll come to Michael on that. I think he's best to answer that.

Brad Whitcomb: It is not just which brand, it is not just which product, but it is also the attributes that are associated with each of those. We are starting to tile that out, I think, more and more effectively. We have seen an increase in ARPU, we have seen an increase in the number of customers. The customers have never been happier. I think to me, that speaks to our overall value proposition. Probably the hallmark of that is being served by an absolutely brilliant professional frontline staff, which has got an eye-watering employee engagement score of +86. From my experience, there is nothing better than being served by an agent who truly loves what they do and really cares about you. That is underpinned by our ongoing investments in our network, world-class cybersecurity, the satellite messaging, which now includes apps.

Speaker #1: So we've seen an increase in ARPU. We've seen an increase in the number of customers. The customers have never been happier. And I think to me, that speaks to our overall value proposition.

Brad Whitcomb: It is not just which brand, it is not just which product, but it is also the attributes that are associated with each of those. We are starting to tile that out, I think, more and more effectively. So we have seen an increase in ARPU. We have seen an increase in the number of customers. The customers have never been happier. I think to me, that speaks to our overall value proposition. Probably the hallmark of that is being served by an absolutely brilliant professional frontline staff, which has got an eye-watering employee engagement score of +86. From my experience, there is nothing better than being served by an agent who truly loves what they do and really cares about you. That is underpinned by our ongoing investments in our network, world-class cybersecurity, the satellite messaging, which now includes apps.

Speaker #1: The customers have never been happier. And I think to me, that speaks to our overall value proposition. Probably the hallmark of that is being served by an absolutely brilliant professional frontline staff, which has got an eye-watering employee engagement score of plus 86.

Speaker #2: On productivity gains, in terms of productivity gains, look, as we look forward, technology including AI has to play a big part in how we continue to be more efficient and more effective in how we deliver for customers.

Speaker #1: Probably the hallmark of that is being served by an absolutely brilliant professional frontline staff, which is got an eye-watering employee engagement score of plus 86.

Vicki Brady: Actually, the numbers as we got to closure of the network, as we look back at prior closures, was relatively low. But absolutely, those services did come out of our numbers in the H1. Just on free cash flow, I will come to Michael on that. I think he is best to answer that. On productivity gains, in terms of productivity gains, look, as we look forward, technology, including AI, has to play a big part in how we continue to be more efficient and more effective in how we deliver for customers. I have talked about a number of times, we have got to run the business on a sustainable basis because the demand that is happening. Our mobile network, for example, over the last five years, has had data volumes triple. As you can see, we are investing more into new technologies and ensuring we are right at the leading edge.

Speaker #1: And from my experience, there's nothing better than being served by an agent who truly loves what they do and really cares about you. And then that underpin is underpinned by our ongoing investments in our network, world-class cybersecurity, the satellite messaging, which now includes apps and I know from personal experience, being able to send a photo on WhatsApp on the Larapinta trail in the middle of nowhere is actually quite cool.

Speaker #1: And from my experience, there's nothing better than being served by an agent who truly loves what they do and really cares about you. And then that underpin is underpinned by our ongoing investments in our network, world-class cybersecurity, the satellite messaging, which now includes apps and I know from personal experience, being able to send a photo on WhatsApp on the Lara Pinta trail in the middle of nowhere is actually quite cool.

Speaker #2: I've talked about a number of times we've got to run the business on a sustainable basis, because the demand that is happening our mobile network, for example, over the last five years has had data volumes triple.

Brad Whitcomb: From my experience, there is nothing better than being served by an agent who truly loves what they do and really cares about you. That is underpinned by our ongoing investments in our network, world-class cybersecurity, the satellite messaging, which now includes apps.

Speaker #2: And as you can see, we're investing more into new technologies and ensuring we're right at the leading edge. So undoubtedly, technology, including AI, has to be part of an ongoing drive.

Speaker #1: So if you haven't had a chance to check it out, I would give that a try. Our channels have never been stronger from our brilliant and beautiful retail stores to our very intuitive digital experiences.

Brad Whitcomb: I know from personal experience, being able to send a photo on WhatsApp on the Larapinta Trail in the middle of nowhere is actually quite cool. If you have not had a chance to check it out, I would give that a try. Our channels have never been stronger from our brilliant and beautiful retail stores to our very intuitive digital experiences. Then, of course, the customer experience you get when you call us, which in many cases now you can get access 24/7, which I think is an industry first in Australia. We are continuing to grow that value proposition. That is why we have confidence in the overall mobile business. I would expect that that ARPU would continue to rise as the price changes that we put through in May flow through the business.

Speaker #2: I think every business you speak to, certainly all the business leaders I engage with, you've got to be constantly looking for efficiency. And that will be consistent for us.

Brad Whitcomb: I know from personal experience, being able to send a photo on WhatsApp on the Larapinta Trail in the middle of nowhere is actually quite cool. If you have not had a chance to check it out, I would give that a try. Our channels have never been stronger, from our brilliant and beautiful retail stores to our very intuitive digital experiences. Then, of course, the customer experience you get when you call us, which in many cases now you can get access 24/7, which I think is an industry first in Australia. So we are continuing to grow that value proposition. That is why we have confidence in the overall mobile business. I would expect that that ARPU would continue to rise as the price changes that we put through in May flow through the business.

Speaker #1: And then, of course, our the customer experience you get when you call us, which in many cases now you can get access 24/7, which I think is an industry-first in Australia.

Speaker #2: I also think, in terms of AI, there is a big shift in skills and capabilities. So one of our focus with our teams is making sure we can't predict the future.

Vicki Brady: Undoubtedly, technology, including AI, has to be part of an ongoing drive. I think every business you speak to, certainly all the business leaders I engage with, you have got to be constantly looking for efficiency, and that will be consistent for us. I also think in terms of AI, there is a big shift in skills and capabilities. So one of our focus with our teams is making sure we cannot predict the future. What we can predict, though, I think with confidence, is that all jobs are going to change. Equipping our people through our data and AI academy, through rolling out Copilot licenses at scale and with our Accenture joint venture, being able to tap into their learning capabilities for the entire Telstra team, I think are good investments to support our teams around skills and capabilities.

Speaker #1: So we're continuing to grow that value proposition. That's why we have confidence in the overall mobile business. And I would expect that that ARPU would continue to rise as the price changes that we put through in May flow through the business.

Speaker #2: What we can predict, though, I think with confidence, is that all jobs are going to change. And so equipping our people through our data and AI academy, through rolling out Copilot licenses at scale, and with our Accenture joint venture, being able to tap into their learning capabilities for the entire Telstra team, I think are good investments to support our teams around skills and capabilities.

Speaker #3: Excellent. We will go to our next question from Lucy Huang from UBS. Lucy.

Speaker #3: Excellent.

Speaker #4: Thank you.

Speaker #3: We will go to our next question from Lucy Huang from UBS. Lucy.

Speaker #5: Thanks, Vicki and Mike and team. I've got two questions as well. So just on the mobile business, I was just wondering if you guys can flesh out the enterprise landscape a bit more in the past.

Speaker #5: Thanks, Vicky, Mike, and team. I've got two questions as well. So just on the mobile business, I was just wondering if you guys can just share the enterprise landscape a bit more in the past.

Nathan Burley: Excellent.

Brad Whitcomb: Thank you.

Nathan Burley: We will go to our next question from Lucy Huang from UBS. Lucy.

Speaker #2: Why don't I go to Michael on free cash flow? And then we'll go across to Brad and just talk about the mobile sub environment.

Nathan Burley: Excellent.

Nathan Burley: Thank you.

Brad Whitcomb: Thank you.

Nathan Burley: We will go to our next question from Lucy Huang from UBS. Lucy.

Lucy Huang: Thanks, Vicki, Mike, and team. I have two questions as well. Just on the mobile business, I was just wondering if you guys can flesh out the enterprise landscape a bit more. In the past, it has been a bit of a drag on ARPU. Just wondering whether there is some slight impact this time. Given the competitive landscape, just any color on how some of the SIOs trends are tracking in enterprise as well. Should I ask my second question or just-

Speaker #5: It's been a bit of a drag on APU. Just wondering whether there's some slight impact this time. And given the competitive landscape, just getting color on how some of the silo trends are tracking in enterprise as well.

Speaker #5: It's been a bit of a drag on slight impact this time. And given the competitive landscape, just getting color on how some of the silo trends are tracking in enterprise as well.

Speaker #3: Yeah, thanks. Thanks, Kane. No, I would not read into our decision around a buyback that that implies any lack of confidence or any change in our opinion that we think the digital infrastructure opportunity is significant and it's long.

Lucy Huang: Thanks, Vicki, Mike, and team. I have two questions as well. On the mobile business, I was just wondering if you guys can flesh out the enterprise landscape a bit more. In the past, it has been a bit of a drag on ARPU. Just wondering whether there is some slight impact this time. Given the competitive landscape, just any color on how some of the SIOs trends are tracking in enterprise as well. Should I ask my second question or just

Speaker #5: Should I ask my second question or just.

Vicki Brady: Why do not I go to Michael on free cash flow, and then we will go across to Brad and just talk about the mobile sub environment.

Speaker #3: Yeah, if you ask both, Lucy, that'd be great.

Speaker #5: Okay, wonderful. And then just my second question is on the slightly higher BAU capex side. And I think on the call you mentioned kind of the next focus is the rollout of 5G standalone.

Michael Ackland: Yeah, thanks. Thanks, Kane. No, I would not read into our decision around a buyback that that implies any lack of confidence or any change in our opinion that we think the digital infrastructure opportunity is significant and it is long. We are absolutely focused on delivering ICF and delivering that within the AUD 1.6 billion and delivering that with the returns that we have talked about in terms of mid-teens IRRs. We have made the decision on the buyback because it is consistent with our capital management structure because we have the balance sheet strength to do that. Frankly, we think we are a great buy.

Speaker #3: So we're absolutely focused on delivering ICF and delivering that within the 1.6 billion and delivering that with the returns that we've talked about in terms of mid-teens IRRs.

Vicki Brady: Yeah, if you ask both, Lucy, that would be great.

Lucy Huang: Okay, wonderful. Then just my second question is on the slightly higher BAU CapEx side. I think on the call you mentioned, the next focus is the rollout of 5G standalone. So just wondering if you guys can give us some ideas as to what better capability will 5G standalone provide for Telstra, and how could this impact, I guess, ARPU upside? What can you truly monetize out of 5G standalone? Thanks.

Speaker #5: So just wondering if you guys can kind of give us some ideas as to what better capability will 5G standalone provide for Telstra and how could this impact I guess APU upside?

Brad Whitcomb: Yeah, if you ask both, Lucy, that would be great.

Vicki Brady: Yeah, if you ask both, Lucy, that would be great.

Speaker #5: So just wondering if you guys can kind of give us some ideas as to what better capability will 5G standalone provide for Telstra and how could this impact, I guess, ARPU upside?

Lucy Huang: Okay, wonderful. My second question is on the slightly higher than BAU CapEx side. I think on the call you mentioned the next focus is the rollout of 5G standalone. Just wondering if you guys can give us some ideas as to what better capability will 5G standalone provide for Telstra, and how could this impact, I guess, the ARPU upside? So what can we truly monetize out of 5G standalone? Thanks.

Speaker #3: We've made the decision on the buyback because it is consistent with our capital management structure, because we have the balance sheet strength to do that.

Speaker #5: What can you truly monetize out of 5G standalone?

Speaker #5: What can you truly monetize out of 5G standalone? Thanks.

Speaker #3: Excellent. Thanks, Lucy. So I'm going to get a couple more of the team up actually. So I think on the mobile business, that focus around enterprise and also I think mid-market is important in that context, what's happening in the enterprise and our mid-market space.

Speaker #3: Excellent. Thanks, Lucy. So I'm going to get a couple more of the team up, actually. So I think on the mobile business, that focus around enterprise and also, I think, mid-market is important in that context, what's happening in the enterprise and our mid-market space.

Speaker #3: And frankly, we think we're a great buy. So

Vicki Brady: Excellent. Thanks, Lucy. I am going to get a couple more of the team up, actually. I think on the mobile business, that focus around Enterprise and also I think mid-market is important in that context, what is happening in the Enterprise and our mid-market space. I might get Oliver and Amanda up. On the CapEx side, 5G standalone, I am going to get Kim to come up as well and just talk about what that capability delivers, how that helps moves us forward and obviously sits under our broader strategy. Ollie, why do not I hand to you first?

Speaker #4: Yeah, I'd love to. Thanks for the question, Kane. Yeah, where would I start? I would say, first, there was an earlier question that was suggesting a bit of a slowdown in the market.

Brad Whitcomb: Excellent. Thanks, Lucy. So I am going to get a couple more of the team up, actually. I think on the mobile business, that focus around enterprise and also I think mid-market is important in that context, what is happening in the enterprise and our mid-market space. So I might get Oliver and Amanda up. On the CapEx side, 5G standalone, I am going to get Kim to come up as well and just talk about what that capability delivers, how that helps moves us forward and obviously sits under our broader strategy. So Ollie, why don't I hand to you first?

Vicki Brady: Excellent. Thanks, Lucy. So I am going to get a couple more of the team up, actually. I think on the mobile business, that focus around enterprise and also I think mid-market is important in that context, what is happening in the enterprise and our mid-market space. So I might get Oliver and Amanda up. On the CapEx side, 5G standalone, I am going to get Kim to come up as well and just talk about what that capability delivers, how that helps moves us forward and obviously sits under our broader strategy. So Ollie, why don't I hand to you first?

Speaker #3: So I might get Oliver and Amanda up. And then on the capex side, 5G standalone, I'm going to get Kim to come up as well and just talk about what that capability delivers, how that helps moves us forward.

Speaker #4: If I look at postpaid for consumer and you look half over, half over, half, actually, we've had one of the strongest halves from a SIO gain perspective, net SIO gain perspective.

Nathan Burley: Brad, do you want to take mobile?

Speaker #3: And obviously sits under our broader strategy. So Ollie, why don't I hand to you first?

Brad Whitcomb: Yeah, I would love to. Thanks for the question, Kane. Where would I start? I would say first there was an earlier question that was suggesting a bit of a slowdown in the market. If I look at postpaid for consumer and you look half over half over half, actually we have had one of the strongest halves from a net SIO gain perspective than we have had in a long time. That is a combination of main brand and our multi-brand. We continue to perform quite well in that space. I think that is a testament to right from the propositions that we put out, but in particular, the frontline team that we have got that has performed exceptionally well. From a prepaid perspective, we have seen that overall market, that is largely driven by immigrants, be a bit smaller than we had anticipated.

Speaker #3: So Ollie, why don't I hand to you first?

Speaker #4: And we've had in a long time. And that's a combination of main brand and our multi-brand. So we continue to perform quite well in that space.

Speaker #1: Yeah, thank you, Vicki. So now I'm pleased to share that the mobile business and enterprise grew in the year. We're very pleased with that outcome.

Speaker #1: Yeah, thank you, Vicky. So now I'm pleased to share that the mobile business and enterprise grew in the year. We're very pleased with that outcome.

Speaker #4: And I think that's a testament to, right from the propositions that we put out, but in particular, the frontline team that we've got that's performed exceptionally well.

Speaker #1: As you said, historically, enterprise hasn't always been set up for win. We've been distracted too many priorities. But we put in place a number of changes commercial guardrails, absolute focus, extra discipline, and a few areas.

Speaker #1: As you said, historically, enterprise hasn't always been set up for win. We've been distracted too many priorities. But we put in place a number of changes.

Oliver Camplin-Warner: Yeah. Thank you, Vicki. I am pleased to share that the mobile business and Enterprise grew in the year. We are very pleased with that outcome. As you said, historically, Enterprise has not always been set up for win. We have been distracted, too many priorities. We put in place a number of changes. Commercial guardrails, absolute focus, extra discipline in a few areas, and we are now starting to see that shine through. We are really pleased with the mobile growth. It also, if I may, maybe Vicki, talk about Enterprise more broadly. We have, with Enterprise reset, been facing into a number of challenges. We have reset the cost base. We have made a number of divestments. We have seen huge change across the board. The way I think about that is we are not at the finish line by any stretch of the imagination. We are just at the start line in some ways.

Oliver Camplin-Warner: Yeah. Thank you, Vicki. So I am pleased to share that the mobile business and enterprise grew in the year. We are very pleased with that outcome. As you said, historically, enterprise hasn't always been set up for win. We have been distracted, too many priorities, but we put in place a number of changes. Commercial guardrails, absolute focus, extra discipline in a few areas, and we are now starting to see that shine through. So we are really pleased with the mobile growth. It also, if I may, maybe Vicki, talk about enterprise more broadly. We have, with enterprise reset, been facing into a number of challenges. We have reset the cost base. We have made a number of divestments. We have seen huge change across the board. But the way I think about that is we are not at the finish line by any stretch of the imagination. We are just at the start line in some ways.

Speaker #4: From a prepaid perspective, we have seen that overall market, and that's largely driven by immigrants be a bit smaller than we had anticipated. But we're competing quite strongly in that market, as well, and are pleased with our results there.

Speaker #1: Commercial guardrails, absolute focus, extra discipline, and a few areas. And we're now starting to see that shine through. So we're really pleased with the mobile growth.

Speaker #1: And we're now starting to see that shine through. So we're really pleased with the mobile growth. It also if I may, maybe Vicki talk about enterprise more broadly.

Speaker #1: It also if I may, maybe Vicky talk about enterprise more broadly. We've with enterprise reset been facing into a number of challenges. We've reset the cost base.

Speaker #1: We've with enterprise reset been facing into a number of challenges. We've reset the cost base. We've made a number of divestments. We've seen huge change across the board.

Speaker #4: You'd mentioned sort of increasing competitive intensity. I think it's always intense. Black Friday, we had probably our strongest Black Friday ever, very, very strong on our Christmas campaign as well.

Oliver Camplin-Warner: We are really pleased with the mobile growth. It also, if I may, maybe Vicki, talk about Enterprise more broadly. We have, with Enterprise reset, been facing into a number of challenges. We have reset the cost base. We have made a number of divestments. We have seen huge change across the board. The way I think about that is we are not at the finish line by any stretch of the imagination. We are just at the start line in some ways.

Speaker #1: We've made a number of divestments. We've seen huge change across the board. But the way I think about that is we're not at the finish line by any stretch of the imagination.

Speaker #1: But the way I think about that is we're not at the finish line by any stretch of the imagination. We're just at the start line in some ways.

Speaker #1: We're just at the start line in some ways. And all the changes that we've made so. Far. This is all about setting us up for the next chapter and really growing moving forward.

Oliver Camplin-Warner: We have, with enterprise reset, been facing into a number of challenges. We have reset the cost base. We have made a number of divestments. We have seen huge change across the board. But the way I think about that is we are not at the finish line by any stretch of the imagination. We are just at the start line in some ways.

Speaker #1: And all the changes that we've made so far, this is all about setting us up for the next chapter and really growing moving forward.

Speaker #4: And hopefully, you all enjoyed the donkey. More recently, we have seen the TPG going to market now with their bigger coverage, as a result of the mock and deal.

Brad Whitcomb: We are competing quite strongly in that market as well and are pleased with our results there. You had mentioned increasing competitive intensity. I think it is always intense. Black Friday, we had probably our strongest Black Friday ever. Very, very strong on our Christmas campaign as well, and hopefully you all enjoyed the donkey. More recently, we have seen TPG going to market now with their bigger coverage as a result of the MOCN deal. Obviously, this deal was no secret, so we were well aware of it. We had prepared for it in advance. The timing, however, we were not sure when it was going to come out. Incredibly pleased with how quickly we were able to get our frontline teams rallied around key messaging, which was basically pointing out we have had this competition. We have had competition in these exact areas.

Speaker #1: So as pleased as I am with the mobile performance, I'm excited about what's ahead. We've launched new products in market. Vicki and Michael spoke about adaptive network center on the fixed side.

Speaker #1: So as pleased as I am with the mobile performance, I'm excited about what's ahead. We've launched new products in market. Vicky and Michael spoke about adaptive network center on the fixed side.

Oliver Camplin-Warner: All the changes that we have made so far, this is all about setting us up for the next chapter and really growing moving forward. As pleased as I am with the mobile performance, I am excited about what is ahead. We have launched new products in market. Vicki and Michael spoke about Adaptive Networks Centre on the fixed side. We have spoken a little bit about satellite to mobile. Brad, we have got a similar offering in Enterprise. Some of our customers who have remote workforces are loving that capability now where their employees can connect in areas where there may not be a mobile network. We have had fantastic response on the mobile side, and we cannot wait to get the next generation out there as well and be able to offer critical apps for those individuals in critical times. In terms of wins, we are winning in market as well.

Oliver Camplin-Warner: All the changes that we have made so far. This is all about setting us up for the next chapter and really growing moving forward. So as pleased as I am with the mobile performance, I am excited about what is ahead. We have launched new products in market. Vicki and Michael spoke about Adaptive Network Centre on the fixed side. We have spoken a little bit about satellite to mobile. Brad, we have got a similar offering in enterprise. Some of our customers who have remote workforces are loving that capability now where their employees can connect in areas where there may not be a mobile network. So we have had fantastic response on the mobile side, and we can't wait to get the next generation out there as well and be able to offer critical apps for those individuals in critical times. In terms of wins, we are winning in market as well.

Speaker #4: Obviously, this deal was no secret. So we were well aware of it. We had prepared for it in advance. The timing, however, we weren't sure when it was going to come out.

Speaker #1: We spoke a little bit about satellite to mobile. Brad, we've got a similar offering in enterprise. Some of our customers who have remote workforces are loving that capability now where their employees can connect in areas where there may not be a mobile network.

Speaker #1: We've spoken a little bit about satellite to mobile. Brad, we've got a similar offering in enterprise. Some of our customers who have remote workforces are loving that capability now where their employees can connect in areas where they may not be a mobile network.

Speaker #4: Incredibly pleased with how quickly we were able to get our frontline teams rallied around key messaging, which was basically pointing out we've got we've had this competition.

Oliver Camplin-Warner: We have spoken a little bit about satellite to mobile. Brad, we have got a similar offering in Enterprise. Some of our customers who have remote workforces are loving that capability now where their employees can connect in areas where there may not be a mobile network. We have had fantastic response on the mobile side, and we cannot wait to get the next generation out there as well and be able to offer critical apps for those individuals in critical times. In terms of wins, we are winning in market as well.

Speaker #1: So we've had fantastic response on the mobile side. And we can't wait to get the next generation out there as well and be able to offer critical apps for those individuals in critical times.

Oliver Camplin-Warner: Brad, we have got a similar offering in enterprise. Some of our customers who have remote workforces are loving that capability now where their employees can connect in areas where there may not be a mobile network. So we have had fantastic response on the mobile side, and we can't wait to get the next generation out there as well and be able to offer critical apps for those individuals in critical times. In terms of wins, we are winning in market as well.

Speaker #4: We've had competition in these exact areas. We still have a three-to-one coverage advantage over TPG Vodafone, as an example. And then our incredible store network sitting across all of Australia, 270 stores, brilliant teams there to be able to deliver service and sales to our customers.

Speaker #1: In terms of wins, we're winning in market as well, maybe just share a couple of quick customer wins. I love winning. And I thought I'd share Bendigo Bank as one name that comes to mind.

Speaker #1: In terms of wins, we're winning in market as well, maybe just share a couple of quick customer wins. I love winning. And I thought I'd share Bendigo Bank is one name that comes to mind.

Speaker #1: Bendigo is going through an incredible digital transformation at the moment. And I'm absolutely thrilled that they've chosen Telstra to be there strategic connectivity partner.

Speaker #1: Bendigo is going through an incredible digital transformation at the moment. And I'm absolutely thrilled that they've chosen Telstra to be their strategic connectivity partner.

Oliver Camplin-Warner: Maybe just share a couple of quick customer wins. I love winning. I thought I would share Bendigo Bank as one name that comes to mind. Bendigo is going through an incredible digital transformation at the moment, and I am absolutely thrilled that they have chosen Telstra to be their strategic connectivity partner. Very excited to go on that journey together. Mobile specifically, one that comes to mind would be Salesforce, where they have decided to award their mobile business to us. That has not been with Telstra historically, and we are in the process of migrating those services to Telstra as we speak. I am really pleased with the mobile performance last year, but as with the whole of the business, we are only just getting started and there is more ahead and we are looking forward to the next chapter, and I think that opportunity is there for the taking.

Brad Whitcomb: We still have a three-to-one coverage advantage over TPG Vodafone, as an example. Our incredible store network sitting across all of Australia, 270 stores. Brilliant teams there to be able to deliver service and sales to our customers. You might ask how brilliant. We are sitting at a +66 NPS. Quite strong from a competitive perspective. We do, of course, track what the net impact is in terms of ports vis-à-vis our competitors. We saw a little bit of minor impacts over the two or three weeks. In the big scheme of movement, we remain a net port winner by a fairly large margin against our direct competitors. Quite pleased.

Speaker #4: You might ask how brilliant we're sitting at a plus 66 NPS. So quite strong from a competitive perspective. We do, of course, track what the net impact is in terms of ports, vis-à-vis our competitors.

Oliver Camplin-Warner: Maybe just share a couple of quick customer wins. I love winning, and I thought I would share. Bendigo Bank is one name that comes to mind. Bendigo is going through an incredible digital transformation at the moment, and I am absolutely thrilled that they have chosen Telstra to be their strategic connectivity partner. So very excited to go on that journey together. Mobile specifically, one that comes to mind would be Salesforce, where they have decided to award their mobile business to us. That has not been with Telstra historically, and we are in the process of migrating those services to Telstra as we speak. I am really pleased with the mobile performance last year. But as with the whole of the business, we are only just getting started and there is more ahead and we are looking forward to the next chapter, and I think that opportunity is there for the taking.

Speaker #1: So very excited to go on that journey together. And then mobile specifically, one that comes to mind would be Salesforce, where they've decided to award their mobile business to us.

Speaker #1: That has not been with Telstra historically. And we're in the progress in the process of migrating those services to Telstra as we speak. So now I'm really pleased with the mobile performance last year.

Speaker #4: We saw a little bit of minor impacts over the two or three weeks, but in a big scheme of movement, we remain a net port winner by a fairly large margin against our direct competitors.

Speaker #1: But as with the whole of the business, we're only just getting started. And there's more ahead and we're looking forward to the next chapter.

Oliver Camplin-Warner: That has not been with Telstra historically, and we are in the process of migrating those services to Telstra as we speak. I am really pleased with the mobile performance last year, but as with the whole of the business, we are only just getting started and there is more ahead and we are looking forward to the next chapter, and I think that opportunity is there for the taking.

Speaker #1: But as with the whole of the business, we're only just getting started. And there's more ahead. And we're looking forward to the next chapter.

Oliver Camplin-Warner: That has not been with Telstra historically, and we are in the process of migrating those services to Telstra as we speak. I am really pleased with the mobile performance last year. But as with the whole of the business, we are only just getting started and there is more ahead and we are looking forward to the next chapter, and I think that opportunity is there for the taking.

Speaker #1: And I think that opportunity is there for the taking.

Speaker #3: Thanks, Ollie. Why don't we get Amanda just I think it's important I know we talk about enterprise a lot, but the mid-market side of our business also is an important and dynamic part of the market.

Speaker #4: So quite pleased. The other thing I would point out on this, a lot of this performance is due to what we've seen as an improved brand position in the market.

Speaker #3: So Amanda, do you just want to touch on the dynamics there?

Vicki Brady: Thanks, Ollie. Why don't we get Amanda? I think it is important, I know we talk about enterprise a lot, but the mid-market side of our business also is an important and dynamic part of the market. Amanda, do you just want to touch on the dynamics there?

Speaker #4: And hopefully, you wouldn't be surprised by that. But we our brand was most recently rated the fourth strongest telco brand in the world by Brand Finance.

Speaker #3: So Amanda, do you just want to touch on the dynamics there?

Speaker #2: Yes, sure. I might just also start with small business, which we've had a really strong year and very, very pleased with the performance in small business.

Speaker #2: Yeah, sure. I might just also start with small business, which we've had a really strong year and very, very pleased with the performance in small business.

Vicki Brady: Thanks, Ollie. Why do not we get Amanda? I think it is important, I know we talk about Enterprise a lot, but the mid-market side of our business also is an important and dynamic part of the market. So Amanda, do you just want to touch on the dynamics there?

Speaker #2: And many of the dynamics that play out in that segment mirror the commentary that Brad made a little bit earlier. But we have seen also really strong performance in our mid-market customer base.

Brad Whitcomb: The other thing I would point out on this, a lot of this performance is due to what we've seen as an improved brand position in the market, and hopefully you would not be surprised by that. Our brand was most recently rated the fourth strongest telco brand in the world by Brand Finance, and we are quite proud of that. I would say watch this space. We are doing some remarkable things there.

Speaker #2: And many of their dynamics that play out in that segment mirror the commentary that Brad made a little bit earlier. But we have seen also really strong performance in our mid-market customer base.

Amanda Hutton: Yeah, sure. I might just also start with small business.

Speaker #4: And we're quite proud of that. I would say watch this space. We're doing some remarkable things there.

Vicki Brady: Yeah

Amanda Hutton: Which we have had a really strong year and very pleased with the performance in small business. Many of the dynamics that play out in that segment mirror the commentary that Brad made a little bit earlier. We have seen also really strong performance in our mid-market customer base. These are customers who typically have employees of about 500 or so or less. We have started to bring some of the dynamics and focus that we have in small business, including price rises into that area, which we have not typically done, and really targeting very specific propositions to that part of our customer base and seeing quite good responses already from customers. We have also spent in FY26 a large focus on bringing together those propositions and products specific to that segment.

Amanda Hutton: Yeah, sure. I might just also start with Small Business.

Speaker #1: Excellent. Thank you very much, Brad. Our next question is from Nicole Penny from Remo. Go ahead.

Vicki Brady: Yeah

Amanda Hutton: Which we have had a really strong year and very, very pleased with the performance in Small Business. Many of the dynamics that play out in that segment mirror the commentary that Brad made a little bit earlier. But we have seen also really strong performance in our mid-market customer base. So these are customers who typically have employees of about 500 or so or less. We have started to bring some of the dynamics, and focus that we have in Small Business, including price rises into that area, which we have not typically done. Really targeting very specific propositions to that part of our customer base, and seeing quite good responses already from customers. We have also spent in FY26, a large focus on bringing together those propositions and products specific to that segment.

Speaker #2: So these are customers who typically have employees of about 500 or so or less. And we've started to bring some of the dynamics and focus that we have in small business, including price rises, into that area, which we haven't typically done.

Speaker #5: Good morning. Thank you for taking my question. If we could refocus on the global AI JV with Accenture, please. And if you could elaborate slightly what changes Telstra customers would see a tangible changes, really, in the next three to five years, and really explained in what CEOs and CFOs could visualize, and in your minds, why did Accenture choose Telstra as a partner?

Speaker #2: And really targeting very specific propositions to that part of our customer base. And seeing quite good responses already from customers. And we've also spent in FY26 a large focus on bringing together those propositions and products specific to that segment.

Nathan Burley: Excellent. Thank you very much, Brad. Our next question is from Nicole Penny from Rimor Equity Research. Go ahead.

Nathan Burley: Excellent. Thank you very much, Brad. Our next question is from Nicole Penny from Rimor. Go ahead.

Nicole Penny: Good morning. Thank you for taking my question. If we could refocus on the global AI JV with Accenture, please. If you could elaborate slightly what changes Telstra customers would see, tangible changes really in the next three to five years, and really explain in what CEOs and CFOs could visualize. In your minds, why did Accenture choose Telstra as a partner? Lastly, given the global scope, will Telstra offer these services to corporates worldwide or focus on Australian companies operating abroad? Thank you very much.

Speaker #2: And we're also seeing really positive momentum and feedback, particularly in our DAC side of our business. So some of the features that we've brought to market, particularly through our adaptive network center, so the ability for customers to change the bandwidth on demand or observe how their products are performing are really important features.

Speaker #5: And lastly, given the global scope, will Telstra offer these services to corporates worldwide, or focus on Australia and companies operating abroad? Thank you very much.

Amanda Hutton: We are also seeing really positive momentum and feedback, particularly in our DAC side of our business. Some of the features that we have brought to market, particularly through our Adaptive Networks Centre. The ability for customers to change the bandwidth on demand or observe how their products are performing are really important features. Imagine, one of our key customers runs large scale sporting events and they need high quality bandwidth, but they only need it a few times of the year. When they do, they want it to work superbly. They can now observe that, and they can dial that up and down. What is most exciting, typically these sort of products and features were really those, really in the enterprise domain, highly customized.

Speaker #2: Thanks, Nicole, for that. Let me pick this one up and then see if anyone else wants to jump in. But just in terms of our JV with Accenture, what was clear to us, we have a roadmap of changes and delivery that we want in our data and AI space.

Amanda Hutton: And we are also seeing really positive momentum and feedback, particularly in our DAC side of our business. Some of the features that we have brought to market, particularly through our Adaptive Network Centre, the ability for customers to change the bandwidth on demand or observe how their products are performing are really important features. Imagine one of our key customers runs large scale sporting events, and they need high quality bandwidth, but they only need it a few times of the year. But when they do, they want it to work superbly. They can now observe that, and they can dial that up and down. What is most exciting, typically these sort of products and features were really those, really in the enterprise domain, highly customized.

Speaker #2: So imagine one of our key customers runs large-scale sporting events. And they need high-quality bandwidth, but they only need it a few times of the year.

Speaker #2: But when they do, they want it to work superbly, but they can now observe that and they can dial that up and down. And what's most exciting, typically these sort of products and features were really those really in the enterprise domain.

Speaker #2: But when they do, they want it to work superbly. But they can now observe that. And they can dial that up and down. And what's most exciting, typically these sort of products and features were really those really in the enterprise domain.

Speaker #2: And we saw the opportunity through this joint venture to really accelerate that. So it takes our teams across Australia and India that are part of our data and AI teams, and puts them into the joint venture.

Vicki Brady: Thanks, Nicole, for that. Let me pick this one up and then see if anyone else wants to jump in. Just in terms of our JV with Accenture, what was clear to us, we have a roadmap of changes and delivery that we want in our data and AI space, and we saw the opportunity through this joint venture to really accelerate that. So it takes our teams across Australia and India that are part of our data and AI teams and puts them into the joint venture. It supplements them then with Accenture's global capabilities when it comes to AI and leverages the AUD 3 billion of investment that they have put into AI. We want to be absolutely a leader in how we apply AI inside our business. That is to deliver absolutely benefits for our customers.

Speaker #2: Highly customized, but now we've been able to bring that down and start to scale that more into that mass medium and larger business customer segment.

Speaker #2: It supplements them then with Accenture's global capabilities when it comes to AI and leverages. The $3 billion of investment that they've put into AI.

Speaker #2: So that's super exciting in our mid-market space. So lots of exciting things, especially to come.

Amanda Hutton: But now we've been able to bring that down and start to scale that more into that mass, medium, and larger business customer segment. So that's super exciting in our mid-market space. So lots of exciting things especially to come.

Speaker #3: Thanks, Amanda. Appreciate that. And Kim, do you want to just touch on 5G standalone, those capabilities, what it means for customers?

Speaker #2: We want to be absolutely a leader. In how we apply AI inside our business. Now, that is to deliver absolutely benefits for our customers.

Amanda Hutton: But now we have been able to bring that down and start to scale that more into that mass, medium, and larger business customer segment. That is super exciting in our mid-market space. Lots of exciting things especially to come.

Speaker #4: Yeah, thank you, Vicki. Thank you, Lucy. I think it's always great when we get network questions on these calls. And this one is a special one because the standalone, the 5G standalone, that is such a critical part of our strategy.

Speaker #4: Yeah, thank you, Vicky. Thank you, Lucy. I think it's always great when we get network questions on these calls. And this one is a special one because the standalone, the 5G standalone, that is such a critical part of our strategy.

Vicki Brady: Thanks, Amanda. Appreciate that. And Kim, do you want to just touch on 5G standalone, those capabilities, what it means for customers?

Speaker #2: It's to deliver benefits in the way our network performs. And it's to deliver overall benefits to the business. So in terms of some of the tangible changes, perhaps if I give you a flavor of some of the things that are already happening that have the ability to scale, firstly, a good example is for our frontline team, we have an AI application available called Ask Telstra.

Vicki Brady: Thanks, Amanda. Appreciate that. Kim, do you want to just touch on 5G standalone, those capabilities, what it means for customers?

Kim Krogh Andersen: Yeah, thank you, Vicki. Thank you, Lucy. I think it's always great when we get network questions on these calls. And this one is a special one because the standalone, the 5G standalone, that is such a critical part of our strategy. Our net strategy is really about making it more tangible, what is premium, what is not premium, and also ensure that we can move away from best effort to actually have network experiences that is fit for specific use cases. And that's exactly what standalone do. We get that opportunity to service, define network for specific use cases. And you can imagine that we already have the Dynamic 5G for our enterprise customers that have specific needs, but it could also be the premium branded experience versus the more discounted solutions.

Speaker #4: Our NAP strategy is really about making it more tangible what is premium, what is not premium, and also ensure that we can move away from best effort to actually have to actually have network experiences that is fit for specific use cases.

Kim Krogh Andersen: Yeah, thank you, Vicki. Thank you, Lucy. I think it is always great when we get network questions on these calls. This one is a special one because, the standalone, the 5G standalone, that is such a critical part of our strategy. Our NAP strategy is really about making it more tangible, what is premium, what is not premium, and also ensure that we can move away from best effort to actually have network experiences that is fit for specific use cases. That is exactly what standalone do. We get that opportunity to service define network for specific use cases. You can imagine that you already have the Dynamic 5G for our enterprise customers that have specific needs, but it could also be the premium branded experience versus the more discounted solutions.

Vicki Brady: It is to deliver benefits in the way our network performs, and it is to deliver overall benefits to the business. In terms of some of the tangible changes, perhaps if I give you a flavor of some of the things that are already happening that have the ability to scale. Firstly, a good example is for our frontline team. We have an AI application available called Ask Telstra. If you are in store, you are in our call centers and you are having to deal with customers, we have more than 2,000 knowledge articles they have to navigate. That is in a generative AI application that allows our teams to ask it simple questions and get complete answers to that in a much more efficient and seamless way. We have also implemented proactively leveraging our Smart Modem that we have in the home for our fixed broadband customers.

Speaker #4: And that's exactly what standalone do. We give that we get that opportunity to service define network for specific use cases. And you can imagine that you already have the dynamic 5G for our enterprise customers that have specific needs, but it could also be the premium branded experience versus the more discounted solutions.

Speaker #4: And that's exactly what standalone do. We give that or we get that opportunity to service define network for specific use cases. And you can imagine that you already have the dynamic 5G for our enterprise customers that have specific needs, but it could also be the premium branded experience versus the more discounted solutions we can make it very clear what you get and which connectivity you need for the specific use you have.

Speaker #2: So if you're in-store, you're in our call centers, and you're having to deal with customers, we have about more than 2,000 knowledge articles they have to navigate.

Speaker #2: Now that is in a generative AI application that allows our teams to ask its simple questions and get complete answers to that in a much more efficient and seamless way.

Speaker #4: We can make it very clear what you get and which connectivity you need for the specific use you have. That's the capability of the 5G standalone.

Speaker #2: We've also implemented proactively leveraging our smart modem that we have in the home for our fixed broadband customers. It's called Smart Fix. So it works with the modem.

Speaker #4: That's the capability of the 5G standalone. It is a broader part of the modernization we do in the network. And our overall network leadership to ensure you can have the standalone experience and you can do that separation of the experience.

Speaker #4: It is a broader part of the modernization we do in the network. And our overall network leadership to ensure you can have the standalone experience and you can do that separation of the experience.

Kim Krogh Andersen: We can make it very clear what you get, and which connectivity you need for the specific use you have. That's the capability of the 5G standalone. It is a broader part of the modernization we do in the network and our overall network leadership. To ensure you can have the standalone experience and you can do that separation of the experience, you both need the radio to be modernized, and you also need the core to be modernized. So one of the things Vicki talked about was our overall network modernization, where we actually take the 5G basebands we were introducing back in 2019 and upgrade that to the newest baseband, and then at the same time transform our core so we can ensure all our customers, they can get to standalone experiences.

Kim Krogh Andersen: We can make it very clear what you get, and which connectivity you need for the specific use you have. That is the capability of the 5G standalone. It is a broader part of the modernization we do in the network and our overall network leadership to ensure you can have the standalone experience and you can do that separation of the experience. You both need the radio to be modernized, and you also need the core to be modernized. One of the things Vicki talked about was our overall network modernization, where we actually take the 5G basebands we were introducing back in 2019 and upgrade that to the newest baseband, and then at the same time transform our core so we can ensure all our customers, they can get to standalone experiences.

Speaker #2: It works with the intelligence on our network. To be able to take a whole lot of information, billions of pieces of information, and proactively take actions in the background.

Speaker #4: You both need the radio to be modernized and you also need the call to be modernized. So one of the things Vicki talked about was our overall network modernization where we actually take the 5G basebands we were introducing back in 2019 and upgrade that to the newest baseband.

Speaker #4: You both need the radio to be modernized. And you also need the core to be modernized. So one of the things Vicky talked about was our overall network modernization, where we actually take the 5G basebands we were introducing back in 2019 and upgrade that to the newest baseband.

Speaker #2: That those actions, there was about a million actions taken over the last year. That resulted in 650,000 less calls by customers. So the aim of this is about absolutely reducing effort for our customers to be able to predict, to be able to act before a customer has to take action.

Vicki Brady: It is called SmartFix. It works with the modem. It works with the intelligence on our network to be able to take a whole lot of information, billions of pieces of information, and proactively take actions in the background. Those actions, there were about 1 million actions taken over the last year. That resulted in 650,000 less calls by customers. The aim of this is about absolutely reducing effort for our customers to be able to predict, to be able to act before a customer has to take action. A lot ahead of us in there and a really exciting partnership with Accenture. In terms of why Accenture chose us, it is probably a good question for Accenture. But if I had to give my perspective from engaging with Julie Sweet and the team, we have had partnership with Accenture over more than 20 years.

Speaker #4: And then at the same time, transform our call so we can ensure all our customers, they can get to standalone experiences that is critical now, but it's even more critical in the future where the use case become more sophisticated.

Speaker #4: And then at the same time, transform our core so we can ensure all our customers, they can get to standalone experiences. That is critical now, but it's even more critical in the future where the use case become more sophisticated.

Speaker #4: AI become more sophisticated, not only being generative AI, but also agentic AI, that's where you need to have that ability to ensure the connectivity fit to the use case.

Speaker #4: AI become more sophisticated, not only being generative AI, but also agentic AI. That's where you need to have that ability to ensure the connectivity fit to the use case.

Speaker #2: And so a lot ahead of us in there, and a really exciting partnership with Accenture. In terms of why Accenture chose us, it's probably a good question for Accenture.

Kim Krogh Andersen: That is critical now, but it is even more critical in the future where the use cases become more sophisticated, AI become more sophisticated, not only being generative AI, but also agentic AI. That is why you need to have that ability to ensure the connectivity fit to the use case. We already now see that our uplink, for instance, grow more than our downlink. That is just one example of the change in demand going forward. The modernization is a critical part of that because there we actually utilize the spectrum in a different way.

Speaker #4: We already now see that our uplink, for instance, grow more than our downlink. That's just one example of the change in demand going forward.

Speaker #2: But if I had to give my perspective from engaging with Julie Sweet and the team, we've had partnership with Accenture over more than 20 years.

Speaker #4: And the modernization is a critical part of that because there we actually utilize the spectrum in a different way. The FTD spectrum we have plus the massive MIMO we are putting in plus the standalone, that's exactly what set us up not only to be a leader today, but also to be a leader in the future and ensure we can create these differentiated network experiences that underpin the premium experience and also our branded proposition in market.

Speaker #4: And the modernization is a critical part of that because there we actually utilize the spectrum in a different way. The FTD spectrum we have, plus the massive MIMO we are putting in, plus the standalone.

Speaker #2: We've worked closely on a lot of things together. In a number of our partnerships with global players, and I would call out Ericsson as a good example, again, we've had a partnership with them for more than 20 years.

Speaker #4: That's exactly what set us up, not only to be a leader today, but also to be a leader in the future and ensure we can create these differentiated network experiences that underpin the premium experience and also our branded proposition in market.

Kim Krogh Andersen: The FDD spectrum we have, plus the massive MIMO we are putting in, plus the standalone, that is exactly what set us up not only to be a leader today, but also to be a leader in the future and ensure we can create these differentiated network experiences that underpin the premium experience and also our branded proposition in market. Standalone is really critical for our strategy and also one of the promises that have been there long time for 5G that is finally getting to market now, and we are super keen on bringing that to our customers in all our segments. So 5G standalone is here to really underpin our strategy.

Speaker #2: Certainly, they see us as a telco that is prepared to be innovative, to lead, to want to be at the forefront of technology. And as I engage with Julie and the team and her thoughts, where she's taking Accenture as we talked about, our ambition for Telstra, it felt like a great fit.

Vicki Brady: We have worked closely on a lot of things together. In a number of our partnerships with global players, and I would call out Ericsson as a good example. Again, we have had a partnership with them for more than 20 years. Certainly, they see us as a telco that is prepared to be innovative, to lead, to want to be at the forefront of technology. As I engage with Julie and the team and her thoughts where she is taking Accenture, as we talked about our ambition for Telstra, it felt like a great fit. As I said, we have got a track record of working with each other together. In terms of offering the capabilities to our corporate and enterprise customers, the Accenture joint venture is very much focused on our capabilities, our data and AI, how we apply that into our business.

Speaker #4: So standalone is very critical for our strategy. And also one of the promises that have been that long time for 5G, that's finally getting to market now.

Kim Krogh Andersen: That is exactly what set us up not only to be a leader today, but also to be a leader in the future and ensure we can create these differentiated network experiences that underpin the premium experience and also our branded proposition in market. Standalone is very critical for our strategy and also one of the promises that have been there a long time for 5G that is finally getting to market now, and we are super keen on bringing that to our customers in all our segments. 5G standalone is here to really underpin our strategy.

Speaker #4: And we are super keen on bringing that to our customers in all our segments. So 5G standalone is here to really underpin our strategy.

Speaker #2: And as I said, we've got a track record of working with each other together. In terms of offering the capabilities, to our corporate and enterprise customers, look, the Accenture joint venture is very much focused on our capabilities, our data and AI, how we apply that into our business.

Speaker #3: Thanks, Kim.

Speaker #4: Thanks, Kim. We will go to our next question, which is from Liam Robinson from Jarden. Go ahead, Liam.

Speaker #3: Thanks, Kim.

Speaker #1: Thanks, Kim. We will go to our next question, which is from Liam Robinson from Jardin. Go ahead, Liam.

Speaker #5: Thanks, Nathan. Morning, team, too, from me. Unfortunately, not much variety mobile and strategic investments. Just firstly on mobile, hoping that pin you down on this one.

Vicki Brady: Thanks, Kim.

Speaker #5: Thanks, Nathan. Morning, team, too, from me. Unfortunately, not much variety mobile and strategic investments. Just firstly, on mobile, hoping to pin you down on this one.

Nathan Burley: Thanks, Kim. We will go to our next question, which is from Liam Robinson from Jarden. Go ahead, Liam.

Vicki Brady: Thanks, Kim.

Nathan Burley: Thanks, Kim. We will go to our next question, which is from Liam Robinson from Jarden. Go ahead, Liam.

Speaker #2: We do have another joint venture, the Quantium Telstra joint venture. And that plays a big role in not just inside our business, but how we work with our enterprise customers.

Speaker #5: I'm comfortable with the commentary around the multi-brand proposition holding up. I just want to get a sense of if you're concerned around the level of decline across all postpaid.

Liam Robinson: Thanks, Nathan. Morning, team, two from me. Unfortunately, not much variety, mobile and strategic investments. Just firstly on mobile, hoping to pin you down on this one. Comfortable with the commentary around the multi-brand proposition holding up. I just want to get a sense of if you're concerned around the level of decline across core postpaid. Is that sustainable moving forward, particularly the H2 number, down 47,000 for the H2? Secondly, on strategic investments, appreciate the color on elevated costs, and the elevated signings and sales do sound promising. Maybe one for you, Michael, I guess when can we actually expect to see that come through the P&L or some form of upfront cash realized? I'm just conscious that to deliver that mid-teens IRR, probably needs to be sooner rather than later. Thanks.

Liam Robertson: Thanks, Nathan. Morning, team, two from me. Unfortunately, not much variety, mobile and strategic investments. Just firstly on mobile, hoping to pin you down on this one. Comfortable with the commentary around the multi-brand proposition holding up. I just want to get a sense of if you're concerned around the level of decline across core postpaid. Is that sustainable moving forward, particularly the H2 number, down 47,000 for the H2? Secondly, on strategic investments, appreciate the color on elevated costs, and the elevated signings and sales do sound promising. Maybe one for you, Michael, I guess when can we actually expect to see that come through the P&L or some form of upfront cash realized? I'm just conscious that to deliver that mid-teens IRR, probably needs to be sooner rather than later. Thanks.

Speaker #5: I'm comfortable with the commentary around the multi-brand proposition holding up. I just want to get a sense of if you're concerned around the level of decline across all postpaid.

Liam Robinson: Thanks, Nathan. Morning, team. Two from me. Unfortunately not much variety, mobile and strategic investments. Just firstly on mobile, hoping to pin you down on this one. I am comfortable with the commentary around the multi-brand proposition holding up. I just want to get a sense of if you are concerned around the level of decline across core postpaid. Is that sustainable moving forward, particularly the H2 number, down 47,000 for the H2? Secondly, on strategic investments, appreciate the color on elevated costs. The elevated signings and sales do sound promising. But maybe one for you, Michael, I guess when can we actually expect to see that come through the P&L or some form of upfront cash realized? I am just conscious that to deliver that mid-teens IRR, probably needs to be sooner rather than later. Thanks.

Liam Robertson: Thanks, Nathan. Morning, team. Two from me. Unfortunately not much variety, mobile and strategic investments. Just firstly on mobile, hoping to pin you down on this one. I am comfortable with the commentary around the multi-brand proposition holding up. I just want to get a sense of if you are concerned around the level of decline across core postpaid. Is that sustainable moving forward, particularly the H2 number, down 47,000 for the H2? Secondly, on strategic investments, appreciate the color on elevated costs. The elevated signings and sales do sound promising. But maybe one for you, Michael, I guess when can we actually expect to see that come through the P&L or some form of upfront cash realized? I am just conscious that to deliver that mid-teens IRR, probably needs to be sooner rather than later. Thanks.

Speaker #5: I mean, is that sustainable moving forward, particularly the second half number down 47,000 for the second half? And then secondly, on strategic investments, appreciate the color on elevated costs.

Speaker #2: So a good example, with CBA, we've got Scam Indicator. And we've extended that to the Fraud Indicator. Sitting in the background, powering that is our Quantium Telstra joint venture.

Vicki Brady: We do have another joint venture, the Quantium Telstra joint venture. That plays a big role in not just inside our business, but how we work with our enterprise customers. A good example, with CBA, we have got Scam Indicator, and we have extended that to the Fraud Indicator. Sitting in the background powering that is our Quantium Telstra joint venture. It is a good example of where we are working, bringing together our capabilities with our enterprise customers and putting a product together with Quantium Telstra to take that to our enterprise customers. Hopefully, Nicole, that addresses the three areas on the joint venture and AI.

Speaker #5: I mean, the elevated signings and sales do sound promising, but maybe one for you, Michael. I guess when can we actually expect to see that come through the P&L or some form of upfront cash realized?

Speaker #2: So it's a good example of where working bringing together our capabilities with our enterprise customers and putting a product together with Quantium Telstra to take that to our enterprise customers.

Speaker #5: I mean, the elevated signings and sales do sound promising, but maybe one for you, Michael. I guess, when can we actually expect to see that come through the P&L or some form of upfront cash realized?

Speaker #5: I'm just conscious that to deliver that mid-teens IRR, probably needs to be sooner rather than later. Thanks.

Speaker #5: I'm just conscious that to deliver that mid-teams IRR, probably needs to be sooner rather than later. Thanks.

Speaker #2: So hopefully, Nicole, that addresses the three areas on the joint venture and AI.

Speaker #3: OK. Why don't Michael, we might go to you first on Aura, if you're comfortable. And then just in terms of mobile and that postpaid performance, I wonder whether Brad in particular might want to comment on the retail side.

Speaker #1: Thanks, Vicky. Our next question is from Brian Han from Morningstar.

Speaker #3: OK. Why don't Michael, we might go to you first on Aura, if you're comfortable. And then just in terms of mobile and that postpaid performance, I wonder whether Brad, in particular, might want to comment on the retail side.

Speaker #6: Oh, thanks. I have two questions. One, is Vicky, you spoke at length about how important Telstra's digital infrastructure is. To Australia's future and how 16 million Australians get Telstra dividends.

Vicki Brady: Okay. Michael, we might go to you first on Aura, if you're comfortable. Then just in terms of mobile and that postpaid performance, I wonder whether Brad, in particular, might want to comment on the retail side.

Speaker #3: That feels like that might be a useful way to go, Michael.

Vicki Brady: Okay. Michael, we might go to you first on Aura, if you are comfortable. Then just in terms of mobile and that postpaid performance, I wonder whether Brad, in particular, might want to comment on the retail side.

Speaker #1: Yeah, no, thanks, Liam. So we've got a number of routes that are now ready for service. So that was the first sort of milestone before we start collecting cash is that we had to have routes ready for service.

Speaker #1: Yeah, no, thanks, Liam. So we've got a number of routes that are now ready for service. So that was the first sort of milestone before we start collecting cash, is that we had to have routes ready for service.

Nathan Burley: Thanks, Vicki. Our next question is from Brian Han from Morningstar.

Michael Ackland: Sure.

Vicki Brady: That feels like that might be a useful way to go, Michael.

Speaker #6: I'm just wondering, is there anything brewing on the regulatory or political horizon that's worrying you guys? And my second question is, Michael, on those 370 million odd EBITDA coming from the international division in the first half, do you know what the free cash conversion of that EBITDA is?

Brian Han: Thanks. I have two questions. One is, Vicki, you spoke at length about how important Telstra's digital infrastructure is to Australia's future and how 16 million Australians get Telstra dividend. I am just wondering, is there anything brewing on the regulatory or political horizon that is worrying you guys? My second question is, Michael, on those AUD 370 million odd EBITDA coming from the international division in the H1, do you know what the free cash conversion of that EBITDA is? Thanks.

Michael Ackland: Sure.

Michael Ackland: Yeah. No, thanks, Liam. We've got a number of routes that are now ready for service. That was the first sort of milestone before we start collecting cash, is that we had to have routes ready for service. We're in a good place there. As we sign customers, we should see cash come in over the next couple of years. The P&L impact is more likely to be a smaller impact over a longer period of time. We'll be able to talk to more of that over time, Liam, in terms of when we expect that cash. We will do that as we announce very specific signings and projects rather than being able to forecast that exactly right now. I hope that helps.

Vicki Brady: That feels like that might be a useful way to go, Michael.

Speaker #1: So we're in a good we're in a good place there. And then as we sign customers, we should see that we should see cash come in over the next couple of years.

Michael Ackland: No, thanks, Liam. We have a number of routes that are now ready for service. That was the first milestone before we start collecting cash, is that we had to have routes ready for service. We are in a good place there. As we sign customers, we should see cash come in over the next couple of years. The P&L impact is more likely to be a smaller impact over a longer period of time. We will be able to talk to more of that over time, Liam, in terms of when we expect that cash. We will do that as we announce very specific signings and projects rather than being able to forecast that exactly right now. I hope that helps.

Speaker #1: The P&L impact could is more likely to be a smaller impact over a longer period of time. But we'll be able to we'll be able to talk to more of that over time, Liam, in terms of when we expect that cash.

Speaker #6: Thanks.

Speaker #2: Thanks, Brian, for that. Why don't I I'll talk about your first question. And I'm going to get Brendan to jump in as well and just talk about more broadly how we're seeing demand for digital infrastructure.

Speaker #1: But we will do that as we announce very specific signings and projects rather than being able to forecast that exactly right now. But I hope that helps.

Speaker #2: And then Michael can take the second question. So look, one of the things I think Brian for Telstra and for the telco industry more broadly you know, as I look at the challenges and opportunities ahead for Australia, it is really clear to me that connectivity is going to be absolutely critical.

Speaker #3: Yeah, no, thank you. It might even after Brad's spoken, if Steven wants to add a little bit more color on Aura and where we're at, might be useful as well.

Vicki Brady: Thanks, Brian, for that. I will talk about your first question, and I am going to get Brendon to jump in as well and just talk about more broadly how we are seeing demand for digital infrastructure, and then Michael can take the second question. Look, one of the things I think, Brian, for Telstra and for the telco industry more broadly, as I look at the challenges and opportunities ahead for Australia, it is really clear to me that connectivity is going to be absolutely critical. I am not sure it is always seen that way by people that are outside the telecommunication sector. I just think as we think about, as a country, how do we make sure we deliver on the productivity ambition so we can be as competitive as possible as a country and grow living standards?

Speaker #3: So Brad will go to you first.

Speaker #4: Yeah. So on the question of SIOs, again, we do look at this as an overall portfolio. And so that is both post and pre.

Speaker #3: So Brad will go to you first.

Vicki Brady: Yeah. No, thank you. It might even, after Brad's spoken, if Steven Worrall wants to add a little bit more color on Aura Network and where we are at, it might be useful as well.

Speaker #4: Yeah. So on the question of sales again, we do look at this as an overall portfolio. And so that is both post and pre.

Vicki Brady: No, thank you. It might even, after Brad has spoken, if Stephen wants to add a little bit more color on Aura and where we are at, might be useful as well.

Speaker #4: And looking across the brand. So I don't look at that in isolation when we're making decisions around pricing. If you look at it overall, we did have on a branded perspective in the second half, as you've pointed out, for postpaid, we did have a reduction in the number of subscribers.

Vicki Brady: Yeah.

Michael Ackland: Yeah.

Vicki Brady: Brad, we will go to you first.

Speaker #2: I'm not sure it's always seen that way by people that are outside the telecommunications sector. And so I just think as we think about you know, as a country, how do we make sure we deliver on the productivity ambition?

Speaker #4: And looking across the brand. So I don't look at that in isolation when we're making decisions around pricing. If you look at it overall, we did have on a branded perspective, in the second half, as you've pointed out, for postpaid, we did have a reduction in the number of subscribers.

Brad Whitcomb: Yep. On the question of SIOs, again, we do look at this as an overall portfolio, and so that is both post and pre and looking across the brand. I do not look at that in isolation when we are making decisions around pricing. If you look at it overall, we did have, on a branded perspective in the H2, as you pointed out, for postpaid, we did have a reduction in the number of subscribers. Belong actually grew. In fact, Belong grew, both halves, so we are very pleased with that. Again, on the back of two price rises within the 12-month period of time, the fact that we have that price establishment period that came in between March and May, and at a generally quiet period. We have end of financial year sale, but that is about the only big trading activity in the year.

Vicki Brady: Yeah.

Vicki Brady: Brad, we will go to you first.

Brad Whitcomb: Yes. On the question to SIOs, again, we do look at this as an overall portfolio, and so that is both post and pre and looking across the brand. I do not look at that in isolation when we are making decisions around pricing. If you look at it overall, we did have on a branded perspective in H2, as you pointed out, for postpaid, we did have a reduction in the number of subscribers. Belong actually grew. In fact, Belong grew, both halves, so we are very pleased with that. Again, on the back of two price rises within the 12-month period of time, the fact that we have that price establishment period that came in between March and May, and at a generally quiet period, we have end of financial year sale, but that is about the only big trading activity in the year.

Speaker #4: Belong actually grew. In fact, Belong grew both halves. So that we're very pleased with that. So again, on the back of two price rises within the 12-month period of time, the fact that we have that price establishment period that came in between March and May.

Speaker #2: So we can be as competitive as possible, as a country. And grow living standards. It's not always obvious to people that all of this amazing technology needs to be connected.

Speaker #2: Obviously, things like data centers are a big focus. They're not islands. They need connectivity. And so from my point of view, it is just making sure that the contribution, the importance of what we're doing, and ensuring we've got an environment that really encourages investment and innovation in this space.

Speaker #4: And in a generally quiet period, we have end of financial year sale. But that's about the only big trading activity in the year. I'm comfortable and confident with where we sit right now.

Brad Whitcomb: Again, on the back of two price rises within the 12-month period of time, the fact that we have that price establishment period that came in between March and May, and at a generally quiet period, we have end of financial year sale, but that is about the only big trading activity in the year.

Vicki Brady: It is not always obvious to people that all of this amazing technology needs to be connected. Obviously, things like data centers are a big focus. They are not islands. They need connectivity. From my point of view, it is just making sure that the contribution, the importance of what we are doing, and ensuring we have got an environment that really encourages investment and innovation in this space, because it is a key foundation. It is very hard to reap all of the benefits that are there potentially in these new technologies without having that foundation really, really well understood and ensuring there is an environment where people want to keep investing, making sure we are a leader and can enable great outcomes for the country. That is the reason why I speak to it.

Speaker #4: And again, I think what we've done to add to our overall value proposition, provided we continue to create more and more value for our customers.

Speaker #2: Because it is a key foundation it's very hard to reap all of the benefits that are there potentially in these new technologies without having that foundation really, really well understood and ensuring you know, there is an environment where people want to keep investing, making sure we're a leader, and can enable you know, great outcomes for the country.

Speaker #4: And it does start at that postpaid branded. That's what we look at to be able to offer the maximum value. And then we tier down from that.

Brad Whitcomb: I am comfortable and confident with where we sit right now. Again, I think what we have done to add to our overall value proposition, provided we continue to create more and more value for our customers, and it does start at that postpaid, branded. That is what we look at to be able to offer the maximum value, and then we tier down from that. The other thing I would say is if you look at the increase, whether it is the prepaid ARPU or the Belong ARPU, both of those in this year rose faster than the overall postpaid ARPU. So the gap between those two offerings or three offerings in the market is closing, and that was part of our strategy this year as well.

Speaker #4: And it does start at that postpaid branded. That's what we look at to be able to offer the maximum value. And then we tier down from that.

Brad Whitcomb: I'm comfortable and confident with where we sit right now. Again, I think what we've done to add to our overall value proposition, provided we continue to create more and more value for our customers, and it does start at that postpaid, branded. That's what we look at to be able to offer the maximum value, and then we tier down from that. The other thing I'd say is if you look at the increase, whether it's the prepaid ARPU or the Belong ARPU, both of those in this year rose faster than the overall postpaid ARPUs. The gap between those two offerings or three offerings in the market is closing, and that was part of our strategy this year as well.

Speaker #4: The other thing I'd say is if you look at the increase, whether it's the prepaid ARPU or the Belong ARPU, both of those in this year rose faster than the overall postpaid ARPU.

Speaker #4: So the gap between those two offerings or three offerings in the market is closing. And that was part of our strategy this year as well.

Speaker #2: That's the reason why I speak to it. Brendan, do you want to jump in just I mean, to give a sense on demand for digital infrastructure and what you're seeing?

Speaker #4: So the gap between those two offerings or three offerings in the market is closing. And that was part of our strategy this year as well.

Speaker #3: Thanks, Brad. Why don't we go Steven, do you want to just add a little bit on Aura? I know we've talked about the sales pipeline confidence and significant shift there over the six months, maybe a little bit more.

Speaker #1: Yeah, thanks, Vicky. And thanks very much for the question, Brian. Yeah, look, I mean, on InnerCity Fiber, you know, we've got big goals. Obviously, one is we are building the infrastructure for the AI era.

Speaker #2: I would be happy to. And Liam, thanks for the question. And it sort of connects with the question that Encho asked earlier as well.

Vicki Brady: Thanks, Brad. Why don't we go, Steven, do you want to just add a little bit on Aura? I know we've talked about the sales pipeline confidence and significant shift there over the 6 months, maybe a little bit more.

Speaker #2: I would be happy to. And Liam, thanks for the question. And it sort of connects with the question that Ensho asked earlier as well.

Speaker #1: And for everyone that's going to consume it. And there's been big shifts in the tech, not only in fiber, but all of the active equipment and the solutions that we need to be ready to deploy for hyperscalers and other big users.

Vicki Brady: Brendan, do you want to jump in just. I mean, to give a sense on demand for digital infrastructure and what you are seeing?

Vicki Brady: Thanks, Brad. Why don't we go, Stephen, do you want to just add a little bit on Aura? I know we've talked about the sales pipeline confidence and significant shift there over the six months, maybe a little bit more.

Speaker #2: There's nothing more to say other than what Michael and Vicki have said in relation to the free cash flow projections that we've made for Aura.

Speaker #2: There's nothing more to say other than what Michael and Vicky have said in relation to the free cash flow projections that we've made for Aura.

Brendon Riley: Yeah, thanks, Vicki, and thanks very much for the question, Brian. Yeah, look, I mean, on intercity fiber, we have big goals. Obviously, one is we are building the infrastructure for the AI era and for everyone that is going to consume it. There have been big shifts in the tech, not only in fiber but all of the active equipment and the solutions that we need to be ready to deploy for hyperscalers and other big users. That is obviously a big goal. Also, the way we have designed intercity fiber, we have our pink and our blue. The blue fiber is designed with access points along the way. We have been engaging intensely with state governments, with local governments on the possibility of the country leveraging that infrastructure more and more. Then there is what Michael has spoken to.

Steven Worrall: I would be happy to. Liam, thanks for the question, and it sort of connects with the question that Entcho asked earlier as well. There's nothing more to say other than what Michael and Vicki have said in relation to the free cash flow projections that we've made for Aura. What we've reconfirmed today in terms of the mid-teens IRR. I would love to add a little extra color in terms of what we're seeing. It's quite remarkable when you think about the beginning of the Aura program was 2022. It was 30 November 2022, as you may recall, when ChatGPT was first launched. That's only 4 years ago, but in the tech world, that's a generation. A lot's changed.

Speaker #2: And what we've reconfirmed today in terms of the mid-teens IRR. But I would love to add a little extra color in terms of what we're seeing.

Speaker #1: So you know, that's obviously a big goal. Also, the way we've designed InnerCity Fiber, we have pink and our blue, the blue fiber is you know, designed with access points along the way.

Steven Worrall: I would be happy to. Liam, thanks for the question, and it sort of connects with the question that Encho asked earlier as well. There's nothing more to say other than what Michael and Vicki have said in relation to the free cash flow projections that we've made for Aura, and what we've reconfirmed today in terms of the mid-teens IRR. But I would love to add a little extra color in terms of what we're seeing. It's quite remarkable when you think about the beginning of the Aura program was 2022. It was 30 November 2022, as you may recall, when ChatGPT was first launched. That's only four years ago, but in the tech world, that's a generation. A lot's changed.

Speaker #2: And what we've reconfirmed today in terms of the mid-teams IRR. But I would love to add a little extra color in terms of what we're seeing.

Speaker #2: It's quite remarkable when you think about the beginning of the Aura program was 2022. And it was November 30, 2022, as you may recall, when ChatGPT was first launched.

Speaker #1: We've been engaging you know, intensely with state governments, with local governments, on the possibility of you know, the country leveraging that infrastructure more and more.

Speaker #2: And so that's only four years ago. But in the tech world, that's a generation. And so lots changed. And indeed, the profile of the demand that we were looking at back then when we put that business case together has changed dramatically.

Speaker #1: And then there's what Michael's spoken to, you know, the disciplines that we bring you know, in order to generate infrastructure like returns, you know, from the investment.

Speaker #2: So the one we see today. As both Michael and Vicki have mentioned, that demand profile has substantially larger. It's also different in terms of composition because the profile of data center demand has changing literally in front of our eyes.

Speaker #1: So that's on InnerCity Fiber. We've got a huge amount happening in satellite. So we're the biggest provider of satellite you know, ground stations you know, in Australia.

Speaker #2: As both Michael and Vicky have mentioned, that demand profile has substantially larger. It's also different in terms of composition, because the profile of data center demand is changing.

Brad Whitcomb: Indeed, the profile of the demand that we were looking at back then when we put that business case together has changed dramatically to the one we see today. As both Michael and Vicki have mentioned, that demand profile is substantially larger. It's also different in terms of composition, because the profile of data center demand is changing literally in front of our eyes. Back when I was at Microsoft, the sorts of contracts that you would've seen continue. Of course, we're also now seeing a new type of demand for what I'll describe as an AI factory, a gigawatt level type demand. Which is a step change in the sort of data center capacity that the country is going to need to contemplate. Of course, we know that that's an issue for governments and communities around the country.

Steven Worrall: Indeed, the profile of the demand that we were looking at back then when we put that business case together has changed dramatically to the one we see today. As both Michael and Vicki have mentioned, that demand profile is substantially larger. It's also different in terms of composition, because the profile of data center demand is changing literally in front of our eyes. Back when I was at Microsoft, the sorts of contracts that you would've seen continue. But of course, we're also now seeing a new type of demand for what I'll describe as an AI factory, a gigawatt level type demand. Which is a step change in the sort of data center capacity that the country is going to need to contemplate. Of course, we know that that's an issue for governments and communities around the country.

Speaker #2: Literally in front of our eyes. Back when I was at Microsoft, the sorts of contracts that we would have seen continue. But of course, we're also now seeing a new type of demand for what I'll describe as an AI factory, gigawatt level type demand, which is a step change in the sort of data center capacity that the country is going to need to contemplate.

Speaker #1: We work with all the major satellite providers. You know, that requires fiber. It requires sites. It requires services to stand them up and help maintain them.

Speaker #2: Back when I was at Microsoft, the sorts of contracts that we would have seen continue. But of course, we're also now seeing a new type of demand for what I'll describe as an AI factory, gigawatt level type demand, which is a step change in the sort of data center capacity that the country is going to need to contemplate.

Brendon Riley: The disciplines that we bring in order to generate infrastructure-like returns from the investment. So that is on intercity fiber. We have a huge amount happening in satellite. So we are the biggest provider of satellite ground stations in Australia. We work with all the major satellite providers. That requires fiber, it requires sites. It requires services to stand them up and help maintain them. There have been some articles written about data center, and we do have some great data center assets. Importantly, we have a fantastic set of edge sites right across Australia with a large, huge amount of megawatt capacity available for those edge sites, and we are seeing increased interest in that. So, we have some amazing assets, big plans, and we are just seeing continued interest and demand coming through, as you can see from our results. I will go back to you, Vicki.

Speaker #1: There's been some articles written about you know, data center, and we do have some great data center assets. Importantly, we have you know, a fantastic set of edge sites you know, right across Australia, with a large you know, huge amount of megawatt capacity available to those edge sites.

Speaker #2: And of course, we know that that's a issue for governments and communities around the country. But it also connects with the Google transaction that we completed earlier this year that we think was highly consequential.

Speaker #2: In that Google in acquiring and now becoming our single largest client on Aura, and then in turn us acquiring capacity on their subsea network, points to the future of where you're going to see Australia play, I think, an increasingly important role in the information flows that we see around the southern hemisphere.

Speaker #1: And we're seeing increased interest you know, in that. So you know, we've got some amazing assets, big plans. And we're just seeing continued interest and demand coming through, as you can see from our results.

Brad Whitcomb: It also connects with the Google transaction that we completed earlier this year that we think was highly consequential. In that Google, in acquiring and now becoming our single largest client on Aura. Then in turn, us acquiring capacity on their subsea network, points to the future of where you're going to see Australia play, I think, an increasingly important role in the information flows that we see around the Southern Hemisphere. Of course, it highlights just how important international route diversity is becoming. Not just for the future of AI inferencing and of course, low latency cloud delivery, but of course, in relation to what sovereign digital infrastructure might look like in future. We think, as the government has pointed to recently, we think there's an important role for us to play in the delivery of that sovereign digital infrastructure.

Steven Worrall: It also connects with the Google transaction that we completed earlier this year that we think was highly consequential. Google, in acquiring and now becoming our single largest client on Aura, and then in turn us acquiring capacity on their sub-sea network, points to the future of where you are going to see Australia play, I think, an increasingly important role in the information flows that we see around the Southern Hemisphere. Of course, it highlights just how important international route diversity is becoming. Not just for the future of AI inferencing and of course, low latency cloud delivery, but of course, in relation to what sovereign digital infrastructure might look like in future. We think, as the government has pointed to recently, there is an important role for us to play in the delivery of that sovereign digital infrastructure.

Speaker #1: I'll go back to you, Vicky.

Speaker #2: Thanks for that. And Michael, did you want to take the second question?

Speaker #2: And of course, it highlights just how important international route diversity is becoming. Not just for the future of AI inferencing and of course low latency cloud delivery, but of course in relation to what sovereign digital infrastructure might look like in future.

Speaker #3: Yeah, sure. So in terms of the cash flow translation of international I mean, we don't break that down. But what I'd sort of point you to a couple of things to think through.

Speaker #2: And of course, it highlights just how important international route diversity is becoming. Not just for the future of AI inferencing, and of course, low latency cloud delivery, but of course, in relation to what sovereign digital infrastructure might look like in future.

Speaker #3: And there's two very different businesses there. So one is on our wholesale and enterprise business within international. It translates in through to cash flow in similar ways to our other wholesale and infrastructure businesses.

Speaker #2: And so we think as a government has pointed to recently, we think there's an important role for us to play in the delivery of that sovereign digital infrastructure.

Speaker #2: And so we think, as a government has pointed to recently, we think there's an important role for us to play in the delivery of that sovereign digital infrastructure.

Vicki Brady: Thanks for that. Michael, did you want to take the second question?

Brendon Riley: Yeah, sure. In terms of the cash flow translation of international, I mean, we do not break that down, but what I'd sort of point you to a couple of things to think through, and there's two very different businesses there. One is

Michael Ackland: Yeah, sure. In terms of the cash flow translation of international, I mean, we do not break that down, but what I'd sort of point you to a couple of things to think through, and there's two very different businesses there. One is on our wholesale and enterprise business within international, it translates through to cash flow in similar ways to our other wholesale and infrastructure businesses. You think through, there's a little bit of lumpy CapEx, and there's also the impact of IRUs, which get recognized as revenue over time. That one is similar to the rest of the business in that sense. Then on the Digicel side, it's just important to note that we do have the non-recourse debt on the Digicel side, which is disclosed. It's more highly leveraged on that basis than the rest of the company, so that translation will be a little bit lower due to the finance cost. Thanks, Brian.

Speaker #2: And as those data center projects that we see all around us come online, you'll start to see the revenue flows that will follow from Aura.

Speaker #3: So you think through there's a little bit of lumpy capex. And there's also the impact of IRUs, which get recognized as revenue over time.

Speaker #2: And as those data center projects that we see all around us come online, you'll start to see the revenue flows that will follow from Aura.

Speaker #2: So thank you again, Liam.

Speaker #3: So that one is similar to the rest of the business in that sense. And then on the digicell side, it's just important to note that we do have the non-recourse debt on the digicell side, which is disclosed.

Michael Ackland: On our wholesale and enterprise business within international, it translates through to cash flow in similar ways to our other wholesale and infrastructure businesses. You think through, there's a little bit of lumpy CapEx, and there's also the impact of IRUs, which get recognized as revenue over time. That one is similar to the rest of the business in that sense. Then on the Digicel side, it's just important to note that we do have the non-recourse debt on the Digicel side, which is disclosed. It's more highly leveraged on that basis than the rest of the company, so that translation will be a little bit lower due to the finance cost. Thanks, Brian.

Speaker #2: So thank you again, Liam.

Brad Whitcomb: As those data center projects that we see all around us come online, you will start to see the revenue flows that will follow from Aura. Thank you again, Liam.

Speaker #3: Thank you. We'll go to our next question, which is from where quo from Bank of America.

Speaker #3: Thank you. We'll go to our next question, which is from Werko from Bank of America.

Steven Worrall: As those data center projects that we see all around us come online, you will start to see the revenue flows that will follow from Aura. Thank you again, Liam.

Speaker #5: Thanks, morning. Just two questions from me. One actually related to the previous question. So on InfraCo, I think outside of the new fiber builds, to what extent is there an opportunity to, I guess, re-contract some of the existing InfraCo assets given that we are seeing growing sort of AI demand, more distributed workloads?

Speaker #5: Thanks, morning. Just two questions from me. One actually. The question is, could you recontract for higher pricing and what role do you think some of those assets play in this environment?

Speaker #3: It's more highly leveraged. On that basis than the rest of the company. So that translation will be a little bit lower due to the finance costs, so.

Nathan Burley: Thank you. We will go to our next question, which is from Wei Kuo from Bank of America.

Speaker #3: Thanks, Brian.

Speaker #1: Thanks. We'll take one more question from investors. And analysts. And then we will go to media. So I'd invite all the media on the call to do they are keen to register a question, press star one.

Wei Kuo: Thanks. Morning. Just two questions from me. One actually related to the previous question. On InfraCo, I think outside of the new fiber builds, to what extent is there an opportunity to, I guess, recontract some of the existing InfraCo assets, given that we are seeing growing AI demand, more distributed workloads? I think the question is, could you recontract it for higher pricing, and what role do you think some of those assets play in this environment? Secondly, just on capital allocation. With cash flow visibility, effectively, you have got strong line of sight to FY30. Is there anything preventing the adoption of maybe a more explicit, let us say, FCF-linked distribution policy that might give a little bit more visibility for the market to model out distributions over time? Thanks.

Ware Kuo: Thanks. Morning. Just two questions from me. One actually related to the previous question. On InfraCo, I think outside of the new fiber builds, to what extent is there an opportunity to, I guess, recontract some of the existing InfraCo assets, given that we are seeing growing AI demand, more distributed workloads? I think the question is, could you recontract it for higher pricing, and what role do you think some of those assets play in this environment? Secondly, just on capital allocation. With cash flow visibility, effectively, you have got strong line of sight to FY30. Is there anything preventing the adoption of maybe a more explicit, let us say, FCF-linked distribution policy that might give a little bit more visibility for the market to model out distributions over time? Thanks.

Wei Kuo: Thanks. Morning. Just two questions from me. One actually, the question is, could you re-contract it for higher pricing, and what role do you think some of those assets play in this environment? Secondly, just on cash capital allocation, with cash flow visibility, effectively, you have got strong line of sight to FY30. Is there anything preventing the adoption of maybe a more explicit, let us say, FCF-linked distribution policy that might give a little bit more visibility for the market to sort of model out distributions over time? Thanks.

Ware Kuo: Thanks. Morning. Just two questions from me. One actually, the question is, could you re-contract it for higher pricing, and what role do you think some of those assets play in this environment? Secondly, just on cash capital allocation, with cash flow visibility, effectively, you have got strong line of sight to FY30. Is there anything preventing the adoption of maybe a more explicit, let us say, FCF-linked distribution policy that might give a little bit more visibility for the market to sort of model out distributions over time? Thanks.

Speaker #5: So I think the question is, could you re-contract them for higher pricing and what role do you think some of those assets play in this environment?

Speaker #1: So our last question from investors and analysts is from Andrew Gillies from Macquarie.

Speaker #5: And secondly, just on cash capital allocation, with cash flow visibility effectively you've got strong line of sight FY30. Is there anything preventing the adoption of maybe a more explicit let's say FCF linked distribution policy that might give a little bit more visibility for the market to sort of mull out distributions over time?

Nathan Burley: Thanks. We'll take one more question from investors and analysts, and then we will go to media. I'd invite all the media on the call. If they are keen to register a question, press star one. Our last question from investors and analysts is from Andrew Gillies from Macquarie.

Speaker #5: And secondly, just on cash capital allocation, with cash flow visibility effectively, you've got strong line of sight to FY30. Is there anything preventing the adoption of maybe a more explicit let's say FCF linked distribution policy that might give a little bit more visibility for the market to sort of mull out distributions over time?

Speaker #4: Very much for the opportunity, guys. Just to sort of a bigger picture question first. You know, Australian household telco spend has been relatively stable at 3%.

Speaker #4: Are there kind of any things you can point to in AI that might potentially open up you know, a new customer or a new opportunity?

Speaker #4: And then the second one, around you know, the broader popularity of MVNOs and the performance there. How does that change the way, if at all, that you think about realizing the value provided by the network?

Andrew Gillies: Very much for the opportunity, guys. Just a big picture question first. Australian households' Telco spend's been relatively stable at 3%. Are there any things you can point to in AI that might potentially open up a new customer or a new opportunity? Then the second one around the broader popularity of MVNOs and the performance there. How does that change the way, if at all, that you think about realizing the value provided by the network? Then as an extension, can you maybe outline the strategic rationale for the Boost acquisition and stepping in to purchase that? Thanks.

Speaker #5: Thanks.

Speaker #3: Yeah, thanks, Weir. Two very good questions. On InfraCo, why don't I make some brief comments and I'll get Steven to jump in again. And then we can go to Michael on your second question.

Speaker #5: Thanks.

Speaker #3: Yeah, thanks, Were. Two very good questions. On InfraCo, why don't I make some brief comments and I'll get Steven to jump in again. And then we can go to Michael on your second question.

Speaker #3: Just on the first one, I think it's a really great point. And over a number of years, we've talked a lot about the broad array of assets we have in our infrastructure business.

Speaker #4: And then as an extension, can you maybe outline the strategic rationale for the boost acquisition and stepping into purchase that? Thanks.

Vicki Brady: Yeah, thanks, Wei. Two very good questions. On InfraCo, why do not I make some brief comments, and I will get Steven to jump in again, and then we can go to Michael on your second question. Just on the first one, I think it is a really great point, and over a number of years, we have talked a lot about the broad array of assets we have in our infrastructure business. As Steven just referenced, the world of AI is moving fast, and for a lot of years, there has been discussion about needing to put things closer out to where customers are out on the edge of the network. It is something we continue to monitor, engage in, and understand. It is fast-moving. We have seen some of our peers around the world move and invest quite a lot of CapEx early that probably has not been, in hindsight, the right move.

Speaker #3: Just on the first one, I think it's a really great point. And over a number of years, we've talked a lot about the broad array of assets we have in our infrastructure business.

Vicki Brady: Yeah. Thanks, Wei. Two very good questions. On InfraCo, why don't I make some brief comments and I'll get Stephen to jump in again, and then we can go to Michael on your second question. On the first one, I think it's a really great point, and over a number of years, we've talked a lot about the broad array of assets we have in our infrastructure business. As Stephen just referenced, the world of AI is moving fast, and for a lot of years there's been discussion about needing to put things closer out to where customers are out on the edge of the network. It's something we continue to monitor, engage in, and understand. It is fast-moving. We've seen some of our peers around the world move and invest quite a lot of CapEx early that probably hasn't been, in hindsight, the right move.

Speaker #2: Thanks, Andrew, for that. So why don't I jump in first, and then Michael and Brad might want to comment as well. Just on yeah, you call out a good point on your first question.

Speaker #3: And you know as Steven just referenced, the world of AI is moving fast. And you know for a lot of years, there's been discussion about needing to put things closer out to where customers are, out on the edge of the network.

Speaker #3: And you know, as Steven just referenced, the world of AI is moving fast. And you know, for a lot of years, there's been discussion about needing to put things closer out to where customers are, out on the edge of the network.

Speaker #2: That's right. I mean, household telco spend as a percentage of household spend, I think actually might have my stats I've looked at may have come down a little bit.

Speaker #3: It's something we continue to monitor, engage in, and understand. And you know it is fast moving. We've seen some of our peers around the world move and invest quite a lot of capex early that probably hasn't been in hindsight the right move.

Speaker #3: It's something we continue to monitor, engage in, and understand. And you know, it is fast moving. We've seen some of our peers around the world move and invest quite a lot of capex early that probably hasn't been in hindsight the right move.

Vicki Brady: As Stephen just referenced, the world of AI is moving fast, and for a lot of years there's been discussion about needing to put things closer out to where customers are out on the edge of the network. It's something we continue to monitor, engage in, and understand. It is fast-moving. We've seen some of our peers around the world move and invest quite a lot of CapEx early that probably hasn't been, in hindsight, the right move.

Vicki Brady: Thanks, Andrew, for that. Why don't I jump in first and then Michael and Brad might want to comment as well. Just on, you call out a good point on your first question. That is right. Household Telco spend as a percentage of household spend, I think actually might have, my stats I have looked at may have come down a little bit, but at best it is probably stayed at about 3%. As I look forward, and I spoke today about the investment into our mobile network, particularly into 5G Advanced capabilities. Part of what we are seeing happening is networks are becoming much more software defined. They are becoming much more sophisticated in the capabilities that we will be able to expose and provide. Look, I think there will be multiple paths as we look forward.

Speaker #2: But at best, it's probably stayed at about 3%. Just as I look forward, and I spoke today about the investment into our mobile network, particularly into 5G advanced capabilities, part of what we're seeing happening is networks are becoming much more software-defined.

Speaker #3: So it is something we keep a close watch on. And we do engage with many, many partners and customers to make sure we're set up to be able to move if the time is right and our assets line up to be able to deliver that.

Speaker #2: They're becoming much more sophisticated in the capabilities that we will be able to expose and provide. And so look, I mean, I think there will be multiple paths as we look forward.

Vicki Brady: It is something we keep a close watch on. We do engage with many partners and customers to make sure we are set up to be able to move if the time is right and our assets line up to be able to deliver that. Stephen, you have been doing lots of work with the team since you joined us almost a year ago now.

Vicki Brady: It is something we keep a close watch on. We do engage with many partners and customers to make sure we are set up to be able to move if the time is right and our assets line up to be able to deliver that. Steven, you have been doing lots of work with the team since you joined us almost a year ago now.

Speaker #3: But Steven, you've been doing lots of work with the team since you joined us almost a year ago now.

Vicki Brady: It is something we keep a close watch on, and we do engage with many, many partners and customers to make sure we're set up to be able to move if the time is right and our assets line up to be able to deliver that. But Stephen, you've been doing lots of work with the team since you joined us almost a year ago now.

Speaker #3: But Steven, you've been doing lots of work with the team since you joined us almost a year ago now.

Speaker #2: Indeed. I think coming up to the anniversary later this month, Vicki. So two thoughts there, I think I'd like to share. The first is FY26 was an important year in many, many ways.

Speaker #2: Fundamentally, just core connectivity itself is just so fundamental and only increases in importance. And the quality reliability security of that, I think, again, only continues to increase.

Speaker #2: Indeed. I think coming up to the anniversary later this month, Vicky. So two thoughts there, I think I'd like to share. The first is FY26 was an important year in many, many ways.

Speaker #2: Not the least of which being that we in Telstra Digital Infrastructure now have our single largest client as NBN. And what that represents, I think, is a turning point in how we continue to think about externalizing the assets that we have within the Telstra group.

Steven Worrall: Indeed. I think coming up to the anniversary later this month, Vicki. Two thoughts there I think I would like to share. The first is, FY26 was an important year in many ways. Not the least of which being that we, in Telstra Digital Infrastructure now, have our single largest client as NBN. What that represents, I think, is a turning point in how we continue to think about externalizing the assets that we have within the Telstra Group. In part, that was why we created Telstra Digital Infrastructure so that we could house in the one entity the international assets we have, but of course, the broad range of assets we have here domestically. Those assets, we talk a lot about fiber, but they of course, include many other categories in the digital infrastructure world, data centers, for argument's sake.

Steven Worrall: Indeed. I think coming up the anniversary later this month, Vicki. Two thoughts there I think I'd like to share. The first is, FY26 was an important year in many, many ways. Not the least of which being that we, in Telstra Digital Infrastructure now have our single largest client as NBN. What that represents, I think, is a turning point in how we continue to think about externalizing the assets that we have within the Telstra Group. In part, that was why we created Telstra Digital Infrastructure so that we could house in the one entity the international assets we have, but of course, the broad range of assets we have here domestically. Those assets, we talk a lot about fiber, but they of course, include many other categories in the digital infrastructure world. Data centers for argument's sake.

Speaker #2: But as we look forward, as we look at those more sophisticated features, I think one of the opportunities for us as Telstra and for the telco industry globally, certainly in all the discussions I'm in with peers around the world, is as we build and expose those more sophisticated capabilities, how do we think about the commercial models that we don't just build them and provide them, that we build them the value is understood and we shift the commercial models to ensure that you know, we take some share in that value creation as well.

Vicki Brady: Fundamentally, core connectivity itself, is just so fundamental and only increases in importance and the quality, reliability, security of that, I think again, only continues to increase. As we look forward, as we look at those more sophisticated features, I think one of the opportunities for us as Telstra and for the Telco industry globally, certainly in all the discussions I am in with peers around the world, is as we build and expose those more sophisticated capabilities, how do we think about the commercial models that we do not just build them and provide them? That we build them, the value is understood, and we shift the commercial models to ensure that we take some share in that value creation as well. As I said, core connectivity, I think demand for that, and the quality of it, the sophistication of it, is only going to continue to increase.

Speaker #2: In part, that was why we created Telstra Digital Infrastructure so that we could house in the One Energy the international assets we have. But of course, the broad range of assets we have here domestically.

Speaker #2: And those assets, we talk a lot about fiber, but they of course include many other categories in the digital infrastructure world. Data centers for argument's sake.

Speaker #2: But as I said, core connectivity I think demand for that and the quality of it, the sophistication of it is only going to continue to increase.

Speaker #2: Physical footprints, actually, are becoming important as you think about edge capability towers, satellite. And so there's a broad range of assets in the portfolio that we are increasingly thinking about how to best arrange those to meet the changing profile of the demand that I mentioned earlier.

Speaker #2: Physical footprints, actually, are becoming important. As you think about edge capability, towers, satellite. And so there's a broad range of assets in the portfolio that we are increasingly thinking about how to best arrange those to meet the changing profile of the demand that I mentioned earlier.

Speaker #2: On the MVNO side, look, we've had our multi-brand strategy in place now for a number of years. It's been a core part of how we think about customer needs and different segments in the market.

Steven Worrall: Physical footprints actually become important as you think about edge capability, towers, satellite. There is a broad range of assets in the portfolio that we are increasingly thinking about how to best arrange those to meet the changing profile of the demand that I mentioned earlier, which sort of brings me to that second thought. There is so much change, and our clients, many of them from offshore looking to establish a footprint and a presence here in the region. We continue to work very closely with them in regards to how best to meet their changing demands, because the data flows that I referenced earlier are subject to the use of the AI services that will ultimately be delivered. This is a work in progress.

Steven Worrall: Physical footprints actually become important as you think about edge capability, towers, satellite. There's a broad range of assets in the portfolio that we are increasingly thinking about how to best arrange those to meet the changing profile of the demands that I mentioned earlier, which sort of brings me to that second thought. There is so much change, and our clients, many of them from offshore looking to establish a footprint and a presence here in the region. We're continuing to work very closely with them in regards to how best to meet their changing demands, because the data flows that I referenced earlier are subject to the use of the AI services that will ultimately be delivered. This is a work in progress.

Speaker #2: Which sort of brings me to that second thought. There is so much change. And our clients many of them from offshore looking to establish a footprint and a presence here in the region are continuing to work very closely with them in regards to how best to meet their changing demands.

Speaker #2: We have our Telstra brand. We have our own sub-brands. And then we have a wholesale business where those partners make their choices and decisions about the segments of the market, leveraging their strengths you know, either their distribution or their customer bases.

Vicki Brady: On the MVNO side, look, we have had our multi-brand strategy in place now for a number of years. It has been a core part of how we think about customer needs and different segments in the market. We have our Telstra brand, we have our own sub-brands, and then we have a wholesale business where those partners make their choices and decisions about the segments of the market, leveraging their strengths. Either their distribution or their customer bases. Look, the MVNO business sits inside our portfolio. Our multi-brand strategy, I believe, has served us very well as we have competed in market to make sure that we can address various needs of the market. We understand not every customer in the market will want the Telstra brand. There are different choices and options and our multi-brand strategy remains important to that.

Speaker #2: Because the data flows that I referenced earlier are subject to the use of the AI services that will ultimately be delivered. And this is a work in progress.

Speaker #2: Because the data flows that I referenced earlier, are subject to the use of the AI services that will ultimately be delivered. And this is a work in progress.

Speaker #2: So look, the MVNO business sits inside our portfolio. Our multi-brand strategy I believe has served us very well as we've competed in market to make sure that we can address various needs of the market.

Speaker #2: As I mentioned, we're really four years into what is going to be a profound shift in the way in which technology is used around the world.

Speaker #2: And so many of these questions are still being answered. But to the heart of your question, we think there's great opportunity for us to arrange the assets we have, to continue to release value.

Speaker #2: We understand not every customer in the market will want the Telstra brand. There are different choices and options. And our multi-brand strategy remains important, to that.

Steven Worrall: As I mentioned, we are really four years into what is going to be a profound shift in the way in which technology is used around the world. Many of these questions are still being answered. But to the heart of your question, we think there is great opportunity for us to arrange the assets we have to continue to release value. We think importantly for us to play the crucial role that we believe we play here, which is to deliver sovereign infrastructure that will allow economic value to be delivered here and retained here in Australia as we work with partners across the entirety of the digital supply chain.

Speaker #2: And we think importantly for us to play the crucial role that we believe we play here, which is to deliver sovereign infrastructure that will allow economic value to be delivered here and retained here in Australia as we work with partners across the entirety of the digital supply chain.

Steven Worrall: As I mentioned, we are really four years into what is going to be a profound shift in the way in which technology is used around the world. Many of these questions are still being answered. To the heart of your question, we think there is great opportunity for us to arrange the assets we have to continue to release value. We think importantly for us to play the crucial role that we believe we play here, which is to deliver sovereign infrastructure that will allow economic value to be delivered here and retained here in Australia as we work with partners across the entirety of the digital supply chain.

Speaker #2: So why don't I go, Michael, just see if you want to comment any further on the MVNO side. And then maybe to Brad or if you want to talk a little bit too about boost.

Speaker #3: Thanks, Steven. And Michael, are you happy to take the second question?

Speaker #3: No, nothing more on the MVNO. And I'll let Brad talk to sort of the strategic rationale of boost. I mean, I think initially the logic for boost is it's a strong value-adding acquisition for us from a financial perspective.

Speaker #3: Thanks, Steven. And Michael, are you happy to take the second question?

Speaker #4: Yeah, sure. I mean, on capital allocation and is there anything stopping us with it doing a cash flow linked distribution? I would refer us back to our capital management framework, which is we're committed to the balance sheet settings.

Speaker #4: Yeah, sure. I mean, on capital allocation and is there anything stopping us with doing a cash flow linked distribution? I would refer us back to our capital management framework, which is we're committed to the balance sheet settings.

Vicki Brady: Why don't I go, Michael, just see if you want to comment any further on the MVNO side and then maybe to Brad or if you want to talk a little bit too about Boost.

Vicki Brady: Thanks, Stephen. Michael, are you happy to take the second question?

Vicki Brady: Thanks, Steven. Michael, are you happy to take the second question?

Speaker #4: We think that's important. We're committed to discipline BAU capex, making sure that we're continuing to support business growth and growing cash flows. And then sustainable and growing dividend.

Speaker #3: So it was a relatively you know, easy decision to make from that point of view. And I think it's going to be important strategically for us as well.

Michael Ackland: Yeah, sure. On capital allocation, is there anything stopping us with doing a cash flow link distribution? I would refer us back to our capital management framework, which is we are committed to the balance sheet settings. We think that is important. We are committed to disciplined BAU CapEx, making sure that we are continuing to support business growth and growing cash flows, and then sustainable and growing dividends. I think that where that ability to have a sustainable dividend that continues to grow and to provide that consistency is a very important part of our capital management framework. We will be disciplined on portfolio management, and strategic investment, and obviously, we are using some balance sheet capacity for returns.

Vicki Brady: Thanks, Stephen. Michael, are you happy to take the second question?

Michael Ackland: Yeah, sure. On capital allocation and is there anything stopping us with doing a cash flow link distribution, I would refer us back to our capital management framework, which is we are committed to the balance sheet settings. We think that is important. We are committed to disciplined BAU CapEx, making sure that we are continuing to support business growth and growing cash flows, and then sustainable and growing dividend. I think that where that ability to have a sustainable dividend that continues to grow and to provide that consistency is a very important part of our capital management framework. We will be disciplined on portfolio management, and strategic investment, and obviously we are using some balance sheet capacity for returns.

Michael Ackland: No, nothing more on the MVNO. I will let Brad talk to the strategic rationale of Boost. I think initially the logic for Boost is it is a strong value-adding acquisition for us from a financial perspective. It was a relatively easy decision to make from that point of view, and I think it is going to be important strategically for us as well. Maybe let Brad talk to that.

Speaker #3: So maybe let Brad talk to that.

Speaker #4: And I think that where that ability to have a sustainable dividend that continues to grow and to provide that consistency is a very important part of our capital management framework, we'll be disciplined on portfolio management and strategic investment.

Speaker #5: Yeah, it's nice when it comes together. So thanks, Michael, with the financial side, I think you know, was a strong case. But more importantly, I think strategically, as Vicki said, we've had quite a successful history with multi-brand.

Speaker #4: And I think that where that ability to have a sustainable dividend that continues to grow and to provide that consistency is a very important part of our capital management framework.

Speaker #4: We'll be disciplined on portfolio management. And strategic investment. And obviously use and we're using some balance sheet capacity for returns. I think when we think about that capital management framework, I think we are focused on retaining that flexibility.

Speaker #5: And you can even see in the results for this period where we've got the net acquisitions and belong on the postpaid side and also a significant increase in ARPU there.

Speaker #4: And obviously use and we're using some balance sheet capacity for returns. I think when we think about that capital management framework, I think we are focused on retaining that flexibility and our balance sheet strength and earnings growth does give us that to both invest and to return value to shareholders and to go after opportunities.

Brad Whitcomb: Yeah, it is nice when it comes together. Thanks, Michael. The financial side, I think, was a strong case, but more importantly, I think strategically, as Vicki said, we have had quite a successful history with multi-brand. You can even see in the results for this period where we have got the net acquisitions and Belong on the postpaid side, and also a significant increase in ARPU there, just a little bit under 11%, which is quite extraordinary. Boost is a fantastic brand. We did have a long-term contract with Boost, but to me, there is nothing like having it actually in your stable of brands. They have got a brilliant team. We are leaving that team exactly intact as it is because it is a bit edgier. It is a different way for us to approach customers.

Speaker #5: Just a little bit under 11%, which is quite extraordinary. Boost is a fantastic brand. We did have a long-term contract with Boost. But to me, there's nothing like having it actually in your staple of brands.

Speaker #4: And our balance sheet strength and earnings growth does give us that to both invest and to return value to shareholders and to go after opportunities.

Michael Ackland: I think when we think about that capital management framework, I think we are focused on retaining that flexibility and our balance sheet strength and earnings growth does give us that to both invest and to return value to shareholders and to go after opportunities. Our payout on our DPS was an 82% payout on cash EPS. We are not targeting a payout ratio at this point, but we remain committed to our capital management framework, Wei. Thank you. Excellent. We will go to the next question, which is from Andrew Gillies from Macquarie. Andrew.

Steven Worrall: I think when we think about that capital management framework, I think we are focused on retaining that flexibility and our balance sheet strength and earnings growth does give us that to both invest and to return value to shareholders and to go after opportunities. Our payout on our DPS was an 82% payout on cash EPS. We are not targeting a payout ratio at this point. We remain committed to our capital management framework, Wei. Thank you.

Michael Ackland: I think when we think about that capital management framework, I think we are focused on retaining that flexibility and our balance sheet strength and earnings growth does give us that to both invest and to return value to shareholders and to go after opportunities. Our payout on our DPS was an 82% payout on cash EPS. We are not targeting a payout ratio at this point. We remain committed to our capital management framework, Wei. Thank you.

Speaker #4: Our payout on our DPS was an 82% payout on cash EPS. We're not targeting a payout ratio at this point. But you know we remain committed to our capital management framework, Weir.

Speaker #5: They've got a brilliant team. We're leading that team exactly intact as it is because it's a bit edgier. It's a different way for us to approach customers.

Speaker #4: Our payout on our DPS was an 82% payout on cash DPS. We're not targeting a payout ratio at this point. But you know, we remain committed to our capital management framework.

Speaker #5: But it was just too good to let go. And when we had the opportunity to bring it in, there's a lot we can learn from them.

Speaker #4: Thank you.

Speaker #5: I think there's a bit they can learn from us as well. And we're just super, super pumped to have them here.

Speaker #4: Thank you.

Speaker #3: Excellent. We'll go to the next question, which is from Andrew Gillies from Macquarie. Andrew.

Speaker #5: Thanks, guys, for the opportunity. Two from me. First one on cost. We've seen quite a few businesses report higher than expected token costs. I mean, you've talked in the past to the ability to achieve operating leverage from AI.

Speaker #1: Excellent. Good note to finish on. We thank the investors and analysts for their interest on the call. We'll take a short break. After which we will start the media Q&A.

Speaker #5: Thanks, guys, for the opportunity. Two from me. The first one on costs. We've seen quite a few businesses report higher than expected token costs.

Nathan Burley: Excellent. We will go to the next question, which is from Andrew Gillies from Macquarie. Andrew.

Brad Whitcomb: It was just too good to let go, and when we had the opportunity to bring it in, there is a lot we can learn from them. I think there is a bit they can learn from us as well, and we are just super pumped to have them here.

Speaker #5: I mean, you've talked in the past to the ability to achieve operating leverage from AI. And you flagged sort of modular architectures this morning.

Nathan Burley: Excellent. We will go to the next question, which is from Andrew Gillies from Macquarie. Andrew.

Andrew Gillies: Thanks, guys, for the opportunity. Two from me. The first one on costs. We have seen quite a few businesses report higher than expected token costs. You have talked in the past to the ability to achieve operating leverage from AI, and you flagged modular architectures this morning. Vicki, can you provide a little more detail on the investment you are making in technology and some of the drivers that continue your confidence in a strong cost performance in this landscape? The second one is just around fixed CNSB. It continues to be a pretty competitive landscape, but there has been some differing pricing strategies from some of your competitors. How do you think about that business and how it is positioned over the next 12 to 36 months? Thank you.

Speaker #5: And you flagged sort of modular architectures this morning. But can you provide a little more detail on the investment you're making in technology and some of the drivers that continue your confidence in a strong cost performance in this landscape?

Andrew Gillies: Thanks guys for the opportunity. Two from me. First one on costs. We have seen quite a few businesses report higher than expected token costs. You have talked in the past to the ability to achieve operating leverage from AI, and you flagged modular architectures this morning. Can you provide a little more detail on the investment you are making in technology and some of the drivers that continue your confidence in a strong cost performance in this landscape? The second one is just around Fixed C&SB. It continues to be a pretty competitive landscape, but there has been some differing pricing strategies from some of your competitors. How do you think about that business and how it is positioned over the next 12 to 36 months? Thank you.

Speaker #5: But can you provide a little more detail on the investment you're making in technology and some of the drivers that continue your confidence in a strong cost performance in this landscape?

Nathan Burley: Excellent. Good note to finish on. We thank the investors and analysts for their interest on the call. We will take a short break, after which we will start the media Q&A.

Speaker #5: And then the second one is just around C and SB. Look, it continues to be a pretty competitive landscape. But there's been some differing pricing strategies from some of your competitors.

Speaker #5: How do you think about that business and how it's positioned over the next sort of 12 to 36 months? Thank you.

Speaker #3: Thanks. Thanks, Andrew. Two great questions going different directions. So that's good. On the second one, I'll get Brad up to talk a little bit about fixed consumer and small business, how he sees us competitively positioned.

Speaker #3: Before that, though, I might grab Kim as well for this one. And it's a really important one. Andrew, I know there's a lot of conversations around AI, will the costs outweigh the benefits?

Vicki Brady: Thanks, Andrew. Two great questions going different directions, so that's good. On the second one, I'll get Brad up to talk a little bit about fixed Consumer and Small Business, how he sees us competitively positioned. Before that, though, I might grab Kim as well for this one, and it's a really important one. Andrew, I know there's a lot of conversations around AI. Will the costs outweigh the benefits? And token costs, obviously, in the forefront of that discussion. The one thing I think that has set us up incredibly well is the very disciplined and structured way our teams have approached how we would modernize and simplify our technology and also the architecture we put around it, making sure that it is decoupled, making sure we have flexibility, we don't get locked in. Kim will be able to give you a good overview.

Vicki Brady: Thanks, Andrew. Two great questions going different directions, so that is good. On the second one, I will get Brad up to talk a little bit about Fixed Consumer and Small Business, how he sees us competitively positioned. Before that, though, I might grab Kim as well for this one, and it is a really important one. Andrew, I know there is a lot of conversations around AI. Will the costs outweigh the benefits? Token costs, obviously, in the forefront of that discussion. The one thing I think that has set us up incredibly well is the very disciplined and structured way our teams have approached how we would modernize and simplify our technology and also the architecture we put around it, making sure that it is decoupled, making sure we have flexibility, we do not get locked in. Kim will be able to give you a good overview.

Speaker #6: Lovely thing about together. It goes a long way.

Speaker #3: And token costs, obviously, in the forefront of that discussion. The one thing I think that has set us up incredibly well is the very disciplined and structured way our teams have approached how we would modernize and simplify our technology and also the architecture we put around it, making sure that it is decoupled, making sure we have flexibility.

Speaker #3: And that discussion. The one thing I think that has set us up incredibly well is the very disciplined and structured way our teams have approached how we would modernize and simplify our technology and also the architecture we put around it, making sure that it is decoupled, making sure we have flexibility.

Grahame Lynch: Lovely thing about together, it goes a long way.

Vicki Brady: The one thing I think that has set us up incredibly well is the very disciplined and structured way our teams have approached how we would modernize and simplify our technology and also the architecture we put around it, making sure that it is decoupled, making sure we have flexibility, we do not get locked in. Kim will be able to give you a good overview.

Speaker #3: We don't get locked in. And Kim will be able to give you a good overview. But the thing I would say overarching all of this we're in a position right now where we're not facing blowout in token costs.

Speaker #3: The teams have done an excellent job in terms of enterprise agreements, in terms of how we consume for example, under Copilot, how we use AI embedded in some of our SaaS applications we use.

Vicki Brady: The thing I would say overarching all of this, we're in a position right now where we're not facing blowout in token costs. The teams have done an excellent job in terms of enterprise agreements, in terms of how we consume. For example, under Copilot, how we use AI embedded in some of our SaaS applications we use. Then finally, we have our own cloud environment, which is generating a lot of the tokens. Again, not only have we not seen costs rise in FY26, we've seen those overall cloud costs actually come down 7% whilst we've grown tokens. So I think I'm very grateful for the position we're in. I don't say that it's a given. It's something we've got to keep managing and managing very tightly and be very clear, which we are, on the commercial value we're delivering from AI use cases.

Vicki Brady: The thing I would say overarching all of this, we are in a position right now where we are not facing blowout in token costs. The teams have done an excellent job in terms of enterprise agreements, in terms of how we consume, for example, under Copilot, how we use AI embedded in some of our SaaS applications we use. Finally, we have our own cloud environment, which is generating a lot of the tokens. Again, not only have we not seen costs rise in FY26, we have seen those overall cloud costs actually come down 7% whilst we have grown tokens. I think I am very grateful for the position we are in. I do not say that it is a given. It is something we have got to keep managing and managing very tightly and be very clear, which we are, on the commercial value we are delivering from AI use cases.

Speaker #3: And then finally, we have our own cloud environment, which is generating a lot of the tokens and again, not only have we not seen costs rise in FY26, we've seen those overall cloud costs actually come down 7% whilst we've grown think I'm very grateful for the position we're in.

Speaker #1: Welcome back to our media Q&A for Telstra's half-year results for 2025. My name is Steve Carey. And I'm the general manager of media here at Telstra.

Speaker #3: So I think I'm very grateful for the position we're in. I don't say that it's a given. It's something we've got to keep managing and managing very tightly and be very clear which we are on the commercial value we're delivering from AI use cases.

Speaker #1: I'd like to welcome the media who are joining us on the call today. In this session, we've got CEO Vicki Brady and CFO Michael Ackland, who will be available to address your questions.

Speaker #3: I don't say that it's a given. It's something we've got to keep managing and managing very tightly and be very clear which we are on the commercial value we're delivering from AI use cases.

Vicki Brady: Again, not only have we not seen costs rise in FY26, we have seen those overall cloud costs actually come down 7% whilst we have grown tokens. I think I am very grateful for the position we are in. I do not say that it is a given. It is something we have got to keep managing and managing very tightly and be very clear, which we are, on the commercial value we are delivering from AI use cases.

Speaker #1: Our first caller on the line is Jared Lynch from the Australian. Jared, please go ahead.

Steve Carey: Welcome back to our media Q&A for Telstra's H1 results for 2025. My name's Steve Carey, and I'm the General Manager of Media here at Telstra. I'd like to welcome the media who are joining us on the call today. In this session, we've got CEO Vicki Brady and CFO Michael Ackland, who'll be available to address your questions. Our first caller on the line is Jared Lynch from The Australian. Jared, please go ahead.

Speaker #3: And I feel confident about where we are and where we're headed. But Kim, you've been the architect and the driver behind a lot of this.

Speaker #7: Thanks, Steve. Hi, Vicki. There's been a lot of talk about value for shareholders. What is Telstra planning to do to help ease the cost of living for its customers, particularly after last year's price rises, which went above the inflation rate?

Speaker #3: And I feel confident about where we are and where we're headed. But Kim, you've been the architect and the driver behind a lot of this.

Speaker #3: Do you want to talk a little bit about the approach?

Speaker #2: Yeah, first of all, I'm super proud of the team that tiresly working on the technology leadership. And also network leadership. And it is really great to see the result today and see how important that technology leadership is for our all results.

Vicki Brady: I feel confident about where we are and where we're headed. But Kim, you've been the architect and the driver behind a lot of this. Do you want to talk a little bit about the approach?

Speaker #7: And I've also got another question after you answer that one.

Vicki Brady: I feel confident about where we are and where we are headed. Kim, you have been the architect and the driver behind a lot of this. Do you want to talk a little bit about the approach?

Jared Lynch: Thanks, Steve. Hi, Vicki. There's been a lot of talk about value for shareholders. What is Telstra planning to do to help ease the cost of living for its customers, particularly after last year's price rises, which went above the inflation rate? I've also got another question after you answer that one.

Speaker #2: Thanks, Jared. So first off, just in terms of customers and feeling the pressure of cost of living, we are very, very conscious of that.

Kim Krogh Andersen: Yeah. First of all, I'm super proud of the team that are tirelessly working on the technology leadership and also network leadership. It is really great to see the result today and see how important that technology leadership is for our overall results, and also to see the impact of it when my peers, the segment leaders here, talk about both experience but also efficiency in their challenge. All this is difficult because when you are a technology leader, a digital leader, and also an AI-first company, there is a risk of cost blowing out. We have managed to create a foundation, to Vicki's point, where that is not happening. That's not something that come overnight. That's not something you do overnight. Some of you have been with us for many years, and you recall back to T22, which was really about simplification, digitization.

Speaker #2: And also to see the impact of it when my peers, the segment leaders here, talk about both experience but also efficiency in their challenge.

Speaker #2: And also to see the impact of it when my peers, the segment leaders here talk about both experience, but also efficiency in their challenge.

Kim Krogh Andersen: Yeah. First of all, I am super proud of the team that are tirelessly working on the technology leadership and also network leadership. It is really great to see the result today and see how important that technology leadership is for our overall results, and also to see the impact of it when my peers, the segment leaders here, talk about both experience but also efficiency in their challenge. All this is difficult because when you are a technology leader, a digital leader, and also an AI-first company, there is a risk of cost blowing out. We have managed to create a foundation, to Vicki's point, where that is not happening. That is not something that come overnight. That is not something you do overnight. Some of you have been with us for many years, and you recall back to T22, which was really about simplification, digitization.

Speaker #2: So a few things. It is very much in the forefront of our mind. First thing I'd call out is our plans. We took away contracts several years ago.

Speaker #2: But all this is difficult because when you are technology leader, a digital leader, and also an AI first company, there is a risk of cost blowing out.

Speaker #2: But all this is difficult because when you are technology leader, a digital leader, and also AI first company, there is a risk of cost blowing out.

Vicki Brady: Thanks, Jared. First off, just in terms of customers and feeling the pressure of cost of living, we are very conscious of that. A few things. It is very much in the forefront of our mind. First thing I'd call out is our plans. We took away contracts several years ago so our customers can adjust to suit their needs and change plans without any cost or fees. That's been an important shift. The second thing I'd say is we have a range of products under the Telstra brand, plus we have a range of brands. Things like our Belong business plays an important role. Then we also have, obviously, an MVNO business where customers can choose the Telstra network under a different brand altogether. We're very conscious of it.

Speaker #2: So our customers can adjust to suit their needs and change plans without any cost or fees. So that's been an important shift. The second thing I'd say is we have a range of products under the Telstra brand.

Speaker #2: And we have managed to create a foundation to Vicki's point where that is not happening. But that's not something that come all night. That's not something you do all night.

Speaker #2: Some of you have been with us for many years. And you recall back to T22, which was really about simplification, digitization. We took that with us into T25 where we doubled down with API first, decoupled architecture.

Speaker #2: Plus, we have a range of brands things like our belong business plays an important role. And then we also have, obviously, an MVNO business where customers can choose the Telstra network under a different brand altogether.

Kim Krogh Andersen: We have managed to create a foundation, to Vicki's point, where that is not happening. That is not something that come overnight. That is not something you do overnight. Some of you have been with us for many years, and you recall back to T22, which was really about simplification, digitization.

Speaker #2: And all these things is the foundation. We are building on today. We have the ability now if we have partners or vendors that don't treat us with the respect commercial respect we believe we deserve, then we can actually engineer them out.

Speaker #2: So we're very conscious of it. The other thing we're very focused on is for those customers who are in vulnerable circumstances, we work very hard to help support them.

Kim Krogh Andersen: We took that with us into T25, where we doubled down with API first, decoupled architecture. All these things are the foundation we are building on today. We have the ability now, if we have partners or vendors that do not treat us with the respect, commercial respect we believe we deserve, then we can actually engineer them out. If we do not get the right prices on hyperscalers, we can move traffic across. We also have built up a FinOps capability that ensures we are efficient in the way we code, in the way we use AI, et cetera. All these things are fundamental for where we are today. One example of that is, to Vicki's point, is really our cloud infrastructure that has decreased 70% from a cost point of view this year.

Kim Krogh Andersen: We took that with us into T25, where we doubled down with API first, decoupled architecture. All these things is the foundation we are building on today. We have the ability now, if we have partners or vendors that do not treat us with the commercial respect we believe we deserve, then we can actually engineer them out. If we do not get the right prices on hyperscalers, we can move traffic across. We also have built up a FinOps capability that ensure we are efficient in the way we code, in the way we use AI, et cetera. All these things is fundamental for where we are today. One example of that is, to Vicki's point, is really our cloud infrastructure that have decreased 70% from a cost point of view this year.

Speaker #2: If you don't get the right prices on hyperscalers, we can move traffic across. And we also have built up a FinOps capability that ensure we are efficient in the way we code, in the way we use AI, et cetera.

Speaker #2: If you don't get the right prices on hyperscalers, we can move traffic FinOps capability that ensure we are efficient in the way we code, in the way we use AI, et cetera.

Speaker #2: That includes keeping a million customers connected who are in those vulnerable circumstances through a range of things, from plans that are available for those that are on pension cards, various other support they're available, and also support when customers are having trouble paying their bills to be able to extend payment time.

Speaker #2: So all these things is fundamental for where we are today. One example of that is to Vicki's point is really our cloud infrastructure. I have decreased 70% from a cost point of view this year.

Vicki Brady: The other thing we are very focused on is for those customers who are in vulnerable circumstances. We work very hard to help support them. That includes keeping 1 million customers connected who are in those vulnerable circumstances through a range of things, from plans that are available for those that are on pension cards, various other support there available, and also support when customers are having trouble paying their bills to be able to extend payment time. It is very much front of mind for us. We also, though, need to get the balance right because one thing we know for sure is being connected is critical for our customers, and they keep demanding better and better connectivity. In the last five years, we have had data on our mobile network more than triple, and rightly so.

Speaker #2: And that's despite our application use have increased our compute have increased more than 17%. Our data storage more than 25%. And the token have increased more than 275%.

Speaker #2: So it's very much front of mind for us. We also though need to get the balance right because one thing we know for sure is being connected is critical for our customers.

Kim Krogh Andersen: That is despite our application use having increased, our compute having increased more than 17%, our data storage more than 25%, and the token having increased more than 275%. So we today actually use approximately 15 billion tokens a day. That is a big number. The good thing here is we do that within that envelope and without increasing cost. The other thing that I really like is that 56% of that tokens is used in our customer engagement layer. That is used to ask Telstra one-sentence summary on our telstra.com, on My Telstra, but also to our employees. That is really where we also see the returns. That is where we see the benefit, both from an experience point of view, but also from an efficiency point of view. 24% of the tokens, they are used in our software development.

Speaker #2: So we today actually use approximately 15 billion tokens a day. That's a big number. But the good thing here is we do that within that envelope and without increasing cost.

Speaker #2: And they keep demanding better and better connectivity. In the last five years, we've had data on our mobile network more than triple. And rightly so, customers expect a high level of service, a high level of network experience.

Kim Krogh Andersen: That is despite our application use have increased, our compute have increased more than 17%, our data storage more than 25%, and the token have increased more than 275%. We today actually use approximately 15 billion tokens a day. That is a big number. The good thing here is we do that within that envelope and without increasing cost. The other thing that I really like is that 56% of that tokens is used in our customer engagement layer. That is used to ask Telstra one-sentence summary on our telstra.com, on My Telstra, but also to our employees. That is really where we also see the returns. That is where we see the benefit, both from an experience point of view, but also from an efficiency point of view. 24% of the tokens, they are used in our software development.

Speaker #2: The other thing that I really like is that 56% of that tokens is used in our customer engagement layer. That's used to ask Telstra one sentence summary on our Telstra.com on a MyTelstra, but also to our employees and that's really where we also see the returns.

Speaker #2: The other thing that I really like is that 56% of that tokens is used in our customer engagement layer. That's used to ask Telstar one sentence summary on our Telstar.com on a my Telstar, but also to our employees and that's really where we also see the returns.

Speaker #2: And that's why in today's announcements, we've also announced an additional 800 million dollars over the next four years going into our mobile network to ensure our 5G is the most advanced, the most resilient, and the most reliable 5G network here in the country.

Vicki Brady: Customers expect a high level of service, a high level of network experience, and that is why in today's announcements, we have also announced an additional AUD 800 million over the next four years going into our mobile network to ensure our 5G is the most advanced, the most resilient, and the most reliable 5G network here in the country.

Speaker #2: That's where we see the benefit both from an experience point of view, but also from an efficiency point of view. 24% of the tokens, they are used in our software development.

Speaker #7: And also, should I over the top operators such as Meta and Google help fund the RBS and Universal Access, particularly, as you said, last year that Telstra Enterprise business was facing competition from the big tech companies?

Speaker #2: And both this year and last year, we talked about that flow efficiency we see in software. So 24% of the tokens are used there.

Speaker #2: 12% is used in our network. And that's of course an area where we really use it to support our ambition on autonomous networks. So 12% of the tokens are used in the network.

Speaker #2: Look, thanks, Jared. Just on USO and Universal Access, look, one of the things we've been very consistent and I know has been on the government's agenda as well is looking at universal service reform.

Kim Krogh Andersen: Both this year and last year, we talked about that flow efficiency we see in software. So 24% of the tokens are used there. 12% is used in our network. That is, of course, an area where we really use it to support our ambition on autonomous networks. So 12% of the tokens are used in the network. Then 8% is used in our cyber and, of course, our defense to avoid us being exploited to bad actors. So that is really also the areas where we, from the beginning, identified there are big value pools. That is where we spent the tokens, and we are seeing the returns. So for us, we have the right foundation in place. We have the right prioritization where we use the tokens. So we believe we have a good setup. But to Vicki's point, we cannot take that for granted.

Kim Krogh Andersen: And both this year and last year, we talked about that flow efficiency we see in software. 24% of the tokens are used there. 12% is used in our network. That is, of course, an area where we really use it to support our ambition on autonomous networks. 12% of the tokens are used in the network. Then 8% is used in our cyber and, of course, our defense to avoid us being exploited to bad actors. That is really also the areas where we, from the beginning, identified there is big value pools. That is where we spent the tokens, and we are seeing the returns. For us, we have the right foundation in place. We have the right prioritization where we use the tokens. We believe we have a good setup. But to Vicki's point, we cannot take that for granted.

Jared Lynch: Should over-the-top operators such as Meta and Google help fund the RBS and universal access? Particularly, as you said, last year, the Telstra Enterprise business was facing competition from the big tech companies.

Speaker #2: And then 8% is used in our cyber and of course our defense to avoid us being exploited to bad actors. So that's really also the areas where we from the beginning identified there is big value pools.

Speaker #2: One thing I would say is the universal service obligations, particularly on the voice side, they are old. They don't reflect the new technologies that are available today.

Vicki Brady: Look, thanks, Jared. Just on USO and universal access. One of the things we have been very consistent, and I know has been on the government's agenda as well, is looking at universal service reform. One thing I would say is the universal service obligations, particularly on the voice side, they are old. They do not reflect the new technologies that are available today. So for example, copper obligations, when we know today there are better technologies that can deliver outcomes for customers. So we have been very much of the view that there is an opportunity to reform universal service obligations. I think when it comes to digital platforms, how we work cross-sector, I think the work that is happening around scams and the scams legislation, bringing banks, telcos, digital platforms together, I think that is important. We have got to be able to work cross-sector to get the right outcomes for Australians.

Speaker #2: And that's where we spent the tokens. And we are seeing the returns. So for us, we have the right foundation in place. We have the right prioritization where we use the tokens.

Speaker #2: So for example, copper obligations when we know today there are better technologies that can deliver outcomes for customers. So we've been very much of the view that there is an opportunity to reform universal service obligations.

Speaker #2: So we believe we have a good setup. But to Vicki's point, we can't take that for granted. This is hard work. Every single day to ensure that we bring all the AI benefit back to Telstra, back to our customers, back to our employees, and to Australia.

Kim Krogh Andersen: That is really also the areas where we, from the beginning, identified there is big value pools. That is where we spent the tokens, and we are seeing the returns. For us, we have the right foundation in place. We have the right prioritization where we use the tokens. We believe we have a good setup. But to Vicki's point, we cannot take that for granted.

Speaker #2: So we believe we have a good setup. But to Vicki's point, we can't take that for granted. This is hard work. Every single day to ensure that we bring all the AI benefit back to Telstar, back to our customers, back to our employees, and to Australia, and not let all that AI benefit end up in big US companies revenue buckets.

Speaker #2: I think when it comes to digital platforms, how we work cross sector, I think, you know, the work that's happening around scams and the scams legislation, bringing banks, telcos, digital platforms together I think that's important.

Speaker #2: And not let all that AI benefit end up in big US companies revenue buckets. So that's our ambition. And we'll keep pushing hard on that.

Kim Krogh Andersen: This is hard work every single day to ensure that we bring all the AI benefit back to Telstra, back to our customers, back to our employees, and to Australia, and not let all that AI benefit end up in big US companies' revenue buckets. So that is our ambition, and we will keep pushing hard on that.

Kim Krogh Andersen: This is hard work every single day to ensure that we bring all the AI benefit back to Telstra, back to our customers, back to our employees, and to Australia, and not let all that AI benefit end up in big US companies' revenue buckets. That is our vision, and we will keep pushing hard on that.

Speaker #2: So that's our ambition. And we'll keep pushing hard on that.

Speaker #3: Thanks, Kim. That was great. And Brad, do you want to touch on fixed consumer and small business, the competitive dynamic?

Speaker #2: We've got to be able to work cross sector to get the right outcomes for Australians.

Speaker #4: Yeah, happy to. Thanks, Vicki. So let me start by saying our value proposition when it comes to fixed is absolutely never been stronger. And you can see this in the way we've improved our digital experience to be able to order there.

Kim Krogh Andersen: AI benefit end up in big US companies' revenue buckets. That is our vision, and we will keep pushing hard on that.

Speaker #1: Thanks, Vicki. And thanks, Jared, for those questions. Our next questions come from David Swan from Nine Metro Publishing, The Age, and the SMH. Go ahead, David.

Vicki Brady: Thanks, Kim. That was great. Brad, do you want to touch on fixed Consumer and Small Business, the competitive dynamic?

Vicki Brady: Thanks, Kim. That was great. Brad, do you want to touch on Fixed Consumer and Small Business, the competitive dynamic?

Brad Whitcomb: Yeah, happy to. Thanks, Vicki. Let me start by saying our value proposition when it comes to fixed has absolutely never been stronger. You can see this in the way we have improved our digital experience to be able to order there, our deployment of the NBN high speed tiers and the fiber associated with that, and how beautiful that was when it came to life. We have an absolute industry leading Smart Modem 4 with Wi-Fi 7. If you do not have it, I highly recommend it. It is an entirely different experience when it comes to Wi-Fi performance in your dwelling. Of course, we have also rolled out naked internet or internet only. For customers that have their own modem or choose to acquire their own modem and just want the high-speed service, we offer that as well.

Speaker #4: Our deployment of the NBN high speed tiers and the fiber associated with that and how beautiful that was when it came to life. We've got an absolute industry leading smart modem 4 with Wi-Fi 7.

Brad Whitcomb: Yeah, happy to. Thanks, Vicki. Let me start by saying our value proposition when it comes to fixed has absolutely never been stronger. You can see this in the way we've improved our digital experience to be able to order there, our deployment of the NBN high speed tiers and the fiber associated with that, and how beautiful that was when it came to life. We've got an absolute industry-leading Telstra Smart Modem 4 with Wi-Fi 7. If you don't have it, I highly recommend it. It's an entirely different experience when it comes to Wi-Fi performance in your dwelling. Of course, we've also rolled out naked internet or internet only. So for customers that have their own modem or choose to acquire their own modem and just want the high-speed service, we offer that as well.

Speaker #7: Thanks very much. Thanks as well for the time, guys. And congrats on the numbers today. Three quick ones from me. If you'll indulge me.

Speaker #7: Firstly, I want to ask about competition a little bit after the TPG and Optius us mocking. Would you say that Telstra definitively still has the best network for rural and regional Australians?

Speaker #4: If you don't have it, I highly recommend it. It's an entirely different experience when it comes to Wi-Fi performance in your dwelling. And it of course we've also rolled out naked internet or internet only.

Steve Carey: Thanks, Vicki, and thanks, Gerard, for those questions. Our next questions come from David Swan from Nine Publishing, The Age and The Sydney Morning Herald. Go ahead, David.

Steve Carey: Thanks, Vicki, and thanks, Jared, for those questions. Our next questions come from David Swan from Nine Publishing, The Age and The Sydney Morning Herald. Go ahead, David.

Speaker #4: If you don't have it, I highly recommend it. It's an entirely a different experience when it comes to Wi-Fi performance in your dwelling. And then of course, we've also rolled out naked internet or internet only.

David Swan: Thanks very much. Thanks a lot for the time, guys, and congrats on the numbers today. Three quick ones from me, if you will indulge me. Firstly, I want to talk about competition a little bit after the TPG and Optus MOCN. Would you say that Telstra definitively still has the best network for rural and regional Australians, or is that a bit more of an open question now after that deal? I wanted to ask, secondly, I will throw a third view if that is easiest, about the Accenture deal that we have spoken a little bit about. I know at the time you said you would consult with staff over the proposals. Have you completed that consultation with staff, and what would you say broadly will be the likely impact of that deal on staff? Thirdly, just a bit of a broader question about AI.

Speaker #7: Or is that a bit more of an open question now after that deal? I wanted to ask secondly, I'll throw all three of you if that's easiest.

Speaker #4: So for customers that have their own modem or choose to acquire their own modem and just want the high speed service, we offer that as well.

Speaker #7: About the Accenture deal that we've spoken a little bit about, I know at the time you said you'd consult with staff over the proposals.

Speaker #4: Plus all of the benefits that come with being a Telstra customer, which I've talked about. And then the benefits we've also picked up from our digital migration and we've seen an increase in our customer experience and also we've been able to drive down costs.

Speaker #4: Plus all of the benefits that come with being a Telstar customer, which I've talked about. And then the benefits, we've also picked up from our digital migration and we've seen an increase in our customer experience and also we've been able to drive down costs.

Speaker #7: Have you completed that consultation with staff? And what would you say, broadly, will be the likely impact of that deal on staff? And thirdly, just a bit of a broader question about AI.

Brad Whitcomb: Plus all of the benefits that come with being a Telstra customer, which I have talked about. Then the benefits we have also picked up from our digital migration. We have seen an increase in our customer experience, and also we have been able to drive down costs. At the same time, and it may be a coincidence, the competition, as you pointed out, has never been more intense, and in particularly around the price category. It is worth remembering, we do have the strongest acquisition engine in the market, and we added almost 400,000 new customers to our fixed business during the year. But we also have the largest embedded base, and therefore we are subject to the most competitive pressure in the market, and that is why we have seen that net reduction in our SIOs for the year.

Speaker #4: At the same time, and it may be a coincidence, the competition has you pointed out has never been more intense and in particularly around the price category.

Speaker #4: At the same time, and it may be a coincidence, the competition as you pointed out has never been more intense and in particularly around the price category.

Brad Whitcomb: Plus all of the benefits that come with being a Telstra customer, which I've talked about. Then the benefits we've also picked up from our digital migration, and we've seen an increase in our customer experience, and also we've been able to drive down costs. At the same time, and it may be a coincidence, the competition, as you pointed out, has never been more intense, and in particularly around the price category. It's worth remembering we do have the strongest acquisition engine in the market, and we added almost 400,000 new customers to our fixed business during the year. But we also have the largest embedded base, and therefore we're subject to the most competitive pressure in the market, and that's why we've seen that net reduction in our SIOs for the year.

Speaker #7: Much has been made about ChatGPT and Google and Microsoft's efforts, as well as DeepSeek and Chinese efforts. Does Australia need to do more to be relevant here?

Speaker #4: It's worth remembering we do have the strongest acquisition engine in the market. And we added almost 400,000 new customers to our fixed business during the year.

Speaker #7: And what do we need to be doing as a country to make sure that we're using Australian AI technologies rather than that from overseas?

Speaker #4: But we also have the largest embedded base and therefore we're subject to the most competitive pressure in the market. And that's why we've seen that net reduction in our CIOs for the year.

Speaker #2: Thanks, David. Good range of questions there. So firstly, just in terms of where we stand competitively, on our mobile network, the very clear answer is we absolutely have the biggest and the best network serving Australia.

David Swan: Much has been made about ChatGPT and Google and Microsoft's efforts, as well as DeepSeek and Chinese efforts. Does Australia need to do more to be relevant here, and what do we need to be doing as a country to make sure that we are using Australian AI technologies rather than that from overseas?

Speaker #4: Of course, we're very mindful of subscriber numbers. But we are not going to chase them at any cost. And I think it's that discipline which has allowed us to double the profitability of our CNSB fixed business over the last three years.

Speaker #4: Of course, we're very mindful of subscriber numbers. But we are not going to chase them at any cost. And I think it's that discipline which is allowed us to double the profitability of our CNSB fixed business over the last three years.

Speaker #2: Just to put in perspective, we have expanded the coverage of our mobile network. Our 4G network now covers 3 million square kilometers, 99.7% of the population.

Vicki Brady: Thanks, David. Good range of questions there. Firstly, just in terms of where we stand competitively on our mobile network, the very clear answer is we absolutely have the biggest and the best network serving Australia. Just to put in perspective, we have expanded the coverage of our mobile network. Our 4G network now covers 3 million square kilometers, 99.7% of the population. Relative to Optus, we have more than double their coverage, and relative to TPG Telecom, now with their access under their MOCN deal with Optus, we have more than three times their coverage. Absolutely, our network reaches far more places, and it is a core part of what we focus on, making sure core to our purpose is building a connected future so everyone can thrive.

Brad Whitcomb: Of course, we are very mindful of subscriber numbers, but we are not going to chase them at any cost. I think it is that discipline which has allowed us to double the profitability of our CNSB fixed business over the last three years. If you take out legacy copper, it is now a business that is generating over AUD 0.5 billion a year in profit. Of course, we are not done, and we are going to continue to innovate across the business. I think one thing I would point out is the quality of our base is improving. One thing to look at is the number of customers that are on the higher speed plans. At the beginning of the year, we sat around 21% of our base on 500 meg or above. That has since climbed to 34%.

Speaker #4: And if you take out legacy copper, it is now a business that's generating over a half a billion dollars a year in profit. Of course, we're not done.

Brad Whitcomb: Of course, we're very mindful of subscriber numbers, but we are not going to chase them at any cost. I think it's that discipline which has allowed us to double the profitability of our CNSB fixed business over the last three years. If you take out legacy copper, it is now a business that's generating over a half a billion dollars a year in profit. Of course, we're not done, and we're going to continue to innovate across the business. I think one thing I'd point out is the quality of our base is improving. One thing to look at is the number of customers that are on the higher speed plans. So at the beginning of the year, we sat around 21% of our base on 500 meg or above. That's since climbed to 34%.

Speaker #4: And if you take out legacy copper, it is now a business that's generating over a half a billion dollars a year in profit. Of course, we're not done.

Speaker #2: Relative to Optius, we have more than double their coverage. And relative to TPG, Vodafone now with their access under their mock and deal with Optius, we have more than three times their coverage.

Speaker #4: And we're going to continue to innovate across the business. And I think one thing I point out is the quality of our base is improving.

Speaker #2: So absolutely, our network reaches far more places. And it's a making sure core to our purpose is building a connected future so everyone can thrive and so that mobile network absolutely yeah, reaches a lot further plays a critical role we know in regional Australia and very much a focus as we continue to invest and further extend and improve the experience on that mobile network.

Speaker #4: And one thing to look at is the number of customers that are on the higher speed plans. And so at the beginning of the year, we sat around 21% of our base on 500 meg or above.

Speaker #4: That's since climbed to 34%. And as of today, about three out of every four customers that we acquire is on those higher speed tiers.

Speaker #4: And we're making great progress in moving customers across the fiber. So it is a healthy business. We are mindful of the CIO challenges that we've got.

Speaker #4: And we're making great progress in moving customers across the fiber. So it is a healthy business. We are mindful of the SIO challenges that we've got.

Brad Whitcomb: As of today, about 3 out of every 4 customers that we acquire is on those higher speed tiers, and we are making great progress in moving customers across to fiber. It is a healthy business. We are mindful of the SIO challenges that we have got. We will continue to innovate and continue to upgrade our game and perform in FY27.

Speaker #4: But we'll continue to innovate and continue to upgrade our game and perform in FY27.

Speaker #2: Just in terms of the Accenture deal, we're in the final stages of consultation right now. It's not complete, but it is getting very close to being complete.

Brad Whitcomb: As of today, about three out of every four customers that we acquire is on those higher speed tiers, and we're making great progress in moving customers across to fiber. So, it is a healthy business. We are mindful of the SIO challenges that we've got, but we'll continue to innovate and continue to upgrade our game and perform in FY27.

Speaker #4: But we'll continue to innovate and continue to upgrade our game and perform in FY27.

Vicki Brady: That mobile network absolutely reaches a lot further, plays a critical role, we know, in regional Australia and very much a focus as we continue to invest and further extend and improve the experience on that mobile network. Just in terms of the Accenture deal, we are in the final stages of consultation right now. It is not complete, but it is getting very close to being complete. It has been tracking well. We have had our teams highly engaged in the process, wanting to make sure they understood it really well, what the opportunity is. There is a lot of excitement. We have had a lot of our people already electing in to be part of the joint venture. They have a choice, so they can join the joint venture or they can choose to leave us. Look, it has been progressing well. As I said, not quite complete.

Speaker #1: Great. Great. We'll have a few more analyst questions before moving to media. So if you are media on the call and you would like to register a question, please press star one.

Speaker #2: It's been tracking well. We've had our teams highly engaged in the process, wanting to make sure they understood it really well, what the opportunity is.

Speaker #1: Great.

Speaker #3: Great. We'll have a few more analyst questions before moving to media. So if you are media on the call and you would like to register a question, please press star one.

Speaker #2: There's a lot of excitement. We've had a lot of our people already electing in to be part of the joint venture. They have a choice.

Speaker #1: We will go to Roger Samuels from Jefferies.

Speaker #3: We will go to Roger Samuels from Jefferies.

Nathan Burley: Great. We will have a few more analyst questions before moving to media. If you are media on the call and you would like to register a question, please press star 1. We will go to Roger Samuel from Jefferies.

Speaker #5: Hi, thank you. Hopefully two quick ones. First of all, just can you please unpack the drivers of post-fit mobile output going forward? Is it mainly going to be driven by price increases or perhaps it's going to be NAP as well?

Nathan Burley: Great. We will have a few more analyst questions before moving to media. If you are media on the call and you would like to register a question, please press star one. We will go to Roger Samuel from Jefferies.

Speaker #5: Hi, thank you. Hopefully two quick ones. First of all, just can you please unpack the drivers of post-bit mobile output going forward? Is it mainly going to be driven by price increases or perhaps it's going to be NAP as well?

Speaker #2: So they can join the joint venture or they can choose to leave us and look, it's been progressing well. As I said, not quite complete.

Speaker #2: But right now, I'm expecting we will have a good outcome in terms of that joint venture. As I said, a great opportunity for our people tapping into those global capabilities from Accenture, combined with our capabilities and applying those here into our business.

Roger Samuel: Hi. Thank you. Hopefully 2 quick ones. Firstly, can you please unpack the drivers of postpaid mobile ARPU going forward? Is it mainly going to be driven by price increases or perhaps it is going to be NAP as well, when you offer premium differentiated services? Second question is, just on your BAU CapEx, which is going up a little bit in FY27 after being flat for the last 3 years. Have you taken into account potential CapEx after the investigation into the network outage? Maybe just an extension to that, any potential penalties that you can quantify?

Roger Samuel: Hi, thank you. Hopefully two quick ones. Firstly, can you please unpack the drivers of postpaid mobile ARPU going forward? Is it mainly going to be driven by price increases or perhaps it is going to be a NAP as well, when you offer premium differentiated services? Second question is, just want to know your BAU CapEx, which is going up a little bit in FY27 after being flat for the last three years. Have you taken into account potential CapEx after the investigation into the network outage? Maybe just an extension to that, any potential penalties that you can quantify?

Speaker #5: When you offer premium differentiated services, second question is just want to know your BAU capex. Which is going up a little bit. In FY27, after being flat for the last three years, have you taken into account potential capex after investigation into the network outage?

Speaker #2: So I think a really exciting opportunity. And consultation still underway, but almost complete. Just in terms of AI, in terms of Australia, yes. And what we need to be doing.

Vicki Brady: Right now I am expecting we will have a good outcome in terms of that joint venture. As I said, a great opportunity for our people, tapping into those global capabilities from Accenture, combined with our capabilities and applying those here into our business. So I think a really exciting opportunity and consultation still underway, but almost complete. Just in terms of AI, in terms of Australia, yes, and what we need to be doing. I think for Australia, there is a real opportunity here in how we apply AI as a country, really embracing it, because I think it is going to be critical for our competitiveness as a nation. There is a big race underway, obviously huge investments going in. I do not think Australia needs to be investing in things like building large language models. I do think that is a global game.

Speaker #5: And maybe just an extension to that, any potential penalties that you can quantify?

Speaker #2: So I think for Australia, there's a real opportunity here in how we apply AI as a country really embracing it. Because I think it's going to be critical for our competitiveness as a nation.

Speaker #3: Thanks, Roger. Thanks for those questions. So just on the first ones in terms of drivers of post-paid APU, I mean the first thing I'd say is Brad, spoke to the most recent price change that came through.

Speaker #2: There is a big race underway. Obviously, huge investments going in. I don't think Australia needs to be investing in things like building large language models.

Vicki Brady: Thanks, Roger. Thanks for those questions. Just on the first ones, in terms of drivers of postpaid ARPU, the first thing I would say is Brad spoke to the most recent price change that came through, so that flowed in in May, so late in financial year 2026. That will flow into FY27. NAP, our network as a product strategy, as we have talked about, a big part of that is making sure as we invest in capability on our network, that delivers better experiences for customers to be able to make sure we are sharing that value creation. One of the first ways to do that, as you would know, Roger, having followed the industry for a long time, there is not a huge amount of incentive to go up to higher price plans today.

Speaker #3: So that flowed in in May. So late in financial year 26. So that will flow into FY27. NAP, you know our network as a product strategy as we've talked about, a big part of that is making sure as we invest in capability on our network that delivers better experiences for customers to be able to make sure we share in that value creation.

Vicki Brady: Thanks, Roger. Thanks for those questions. Just on the first ones in terms of drivers of postpaid ARPU, the first thing I would say is Brad spoke to the most recent price change that came through. That flowed in in May, so late in financial year 2026. So that will flow into FY27. NAP, our network as a product strategy, as we have talked about, a big part of that is making sure as we invest in capability on our network that delivers better experiences for customers to be able to make sure we share in that value creation. One of the first ways to do that, as you would know, Roger, having followed the industry for a long time, there is not a huge amount of incentive to go up to higher price plans today.

Speaker #2: I do think that's a global game. But I think Australia needs to be really brilliant at how we apply AI in our environment. And that means we've got to have all the foundations there to enable that.

Speaker #2: And that does include digital infrastructure, so having an environment that really encourages investment and innovation and the ability to be able to apply AI to get the benefits for Australia.

Speaker #3: And one of the first ways to do that as you would know Roger having followed the industry for a long time there's not a huge amount of incentive to go up to higher price plans today if you look at our consumer plans in market.

Vicki Brady: But I think Australia needs to be really brilliant at how we apply AI in our environment, and that means we have got to have all the foundations there to enable that, and that does include digital infrastructure. So having an environment that really encourages investment and innovation and the ability to be able to apply AI to get the benefits for Australia. From our point of view, that digital infrastructure, obviously a key focus and having a good environment to encourage investment and innovation, I think incredibly important.

Speaker #3: And one of the first ways to do that as you would know, Roger, having followed the industry for a long time, there's not a huge amount of incentive to go up to higher price plans today if you look at our consumer plans in market.

Speaker #2: And so from our point of view, that digital infrastructure obviously a key focus. And having a good environment to encourage investment and innovation, I think, incredibly important.

Speaker #3: There's very big data buckets under all of the plans. And so part of our NAP strategy in the first instance is giving people that reason to actually go up to a different plan because the experience I get is a better one.

Speaker #1: Thanks, Dave. For those questions, our next caller is Jenny Wiggins from the AFR. Go ahead, Jenny.

Vicki Brady: If you look at our consumer plans in market, there is very big data buckets under all of the plans. Part of our NAP strategy in the first instance is giving people that reason to actually go up to a different plan, because the experience I get is a better one. So that is some of the thinking and work going on in the background. As we look at FY27, we enter with some good momentum there in terms of ARPU. Michael might want to comment a little bit more in just a sec. Just on the CapEx side, because I will get Michael to comment on BAU CapEx. Let me take the questions that are outage related first. In terms of the outage, first thing I would say is that is not factored in to that BAU CapEx.

Speaker #3: Good morning, all. I also had three questions. Vicki, you mentioned earlier that there were delays and cost pressures in the rollout of the intercity network.

Speaker #3: So that's some of the thinking and work going on in the background. But as we look at FY27, we enter with some good momentum there in terms of APU.

Vicki Brady: If you look at our consumer plans in market, there are very big data buckets under all of the plans. Part of our NAP strategy in the first instance is giving people that reason to actually go up to a different plan because the experience I get is a better one. So that is some of the thinking and work going on in the background. As we look at FY27, we enter with some good momentum there in terms of ARPU. Michael might want to comment a little bit more in just a sec. Just on the CapEx side, because I will get Michael to comment on BAU CapEx. Let me take the questions that are outage related first. In terms of the outage, first thing I would say is that is not factored into that BAU CapEx.

Speaker #3: So that's some of the thinking and work going on in the background. But as we look at FY27, we enter with some good momentum there in terms of APU.

Speaker #3: Michael might want to comment a little bit more in just a sec. And just on the capex side because I will get Michael to comment on BAU capex.

Speaker #3: Can you explain exactly what they are? And does that mean it will be delivered more slowly than you expect? Because I think you said you wanted to be careful and not actually go beyond that one point six billion investment.

Steve Carey: Thanks, Dave, for those questions. Our next caller is Jenny Wiggins from The Australian Financial Review. Go ahead, Jenny.</

Steve Carey: Thanks, Dave, for those questions. Our next caller is Jenny Wiggins from The AFR. Go ahead, Jenny.

Speaker #3: Michael might want to comment a little bit more in just a sec. And just on the capex side because I will get Michael to comment on BAU capex.

Speaker #3: But let me take the questions that are outage related first. In terms of the outage, first thing I would say is that is not factored in to that BAU capex.

Jenny Wiggins: Good morning, all. I also had three questions. Vicki, you mentioned earlier that there were delays and cost pressures in the rollout of the intercity network. Can you explain exactly what they are, and does that mean it will be delivered more slowly than you expect? Because I think you said you wanted to be careful and not actually go beyond that AUD 1.6 billion investment. Secondly, with regard to the AUD 800 million new investment in mobile networks, is that a direct response to the new Optus TPG Telecom deal on regional networks? You certainly seem to be emphasizing that you really want to stay at the forefront of being the first choice for mobile plans for many Australians. Thirdly, with regard to AI, you also said that all jobs are going to change.

Speaker #3: But let me take the questions that are outage related first. In terms of the outage, first thing I would say is that is not factored in to that BAU capex.

Speaker #3: Secondly, with regard to the 800 million new investment in mobile networks, is that a direct response to the new Optius TPG deal on regional networks?

Speaker #3: We're still, as you mentioned, the external investigation is still underway. And so we will see the findings out of that. As I spoke about, as I shared what was the initial understanding of the root cause it was not capex related.

Speaker #3: You certainly seem to be emphasizing that you really want to stay at the forefront of, I guess, being the first choice for mobile plans for many Australians.

Vicki Brady: We are still, as you mentioned, the external investigation is still underway. We will see the findings out of that. As I spoke about, as I shared what was the initial understanding of the root cause, it was not CapEx related. This was an issue to do with processes on our side and then not acting on a software update. If those things had been in line, we expect the outage wouldn't have happened. Having said that, we have got to wait and see the findings from our expert that is doing the investigation at the moment. We are expecting those towards the later part of this month at this stage in terms of those findings. In terms of penalties, the ACMA has commenced an investigation, and we are clearly engaged with them and providing them the information they need. It is just far too early.

Vicki Brady: We're still, as you mentioned, the external investigation is still underway. We will see the findings out of that. As I spoke about, as I shared what was the initial understanding of the root cause, it was not CapEx related. This was an issue to do with processes on our side and not acting on a software update. If those things had been in line, we expect the outage wouldn't have happened. Having said that, we've got to wait and see the findings from our expert that's doing the investigation at the moment. We're expecting those towards the later part of this month at this stage in terms of those findings. In terms of penalties, the ACMA has commenced an investigation. We are clearly engaged with them and providing them the information they need. It's just far too early.

Speaker #3: And thirdly, with regard to AI, you also said that all jobs are going to change. Can you tell me how you expect your job and the jobs of other executives on your team to change as a result of AI?

Speaker #3: This was an issue to do with processes on our side and then not acting on a software update. If those things had been in line we expect the outage wouldn't have happened.

Speaker #3: But having said that, we've got to wait and see the findings from our expert that's doing the investigation at the moment. We're expecting those towards the later part of this month at this stage in terms of those findings.

Speaker #3: Many thanks.

Speaker #2: What a great range of questions. Thanks, Jenny, for that. Let me take them one by one. So just on intercity fiber, yes, I did reference today.

Speaker #2: We've got momentum. However, we are also balancing some delays and cost pressures. Just to give you a little bit of color, what does that look like?

Jenny Wiggins: Can you tell me how you expect your job and the jobs of other executives on your team to change as a result of AI? Many thanks.

Speaker #3: And in terms of penalties, the ACMA has commenced an investigation and we are clearly engaged with them and providing them the information they need.

Speaker #2: It is things, for example, land access. Working through the various processes across the country, because we are rolling out fiber right across Australia. That is, in many instances, quite a complex and takes a fair bit of time to work through.

Vicki Brady: What a great range of questions. Thanks, Jenny, for that. Let me take them one by one. Just on intercity fiber, yes, I did reference today. We have got momentum. However, we are also balancing some delays and cost pressures. Just to give you a little bit of color, what does that look like? It is things, for example, land access, working through the various processes across the country because we are rolling out fiber right across Australia. That is, in many instances, quite complex and takes a fair bit of time to work through. That is one example. We announced actually the intercity fiber build and project back in February 2022. As you can imagine, over that time, a lot of things have changed. Inflation has run higher, FX impacts. So there are a few things like that that we are balancing.

Speaker #3: It's just far too early. They are only at the initial stages of that. So it is far too early to speculate about what that could look like.

Speaker #3: They need to complete their investigations. And then just the other piece outage related that might be on people's minds is where are we at with customers and we've had a big focus on making sure we make it as easy for our customers as possible who feel they were impacted to getting touch.

Speaker #2: So that is one example. We announced actually the intercity fiber build and project back in February 2022. So as you can imagine, over that time, a lot of things have changed.

Vicki Brady: They are only at the initial stages of that, so it is far too early to speculate about what that could look like. They need to complete their investigations. Just the other piece outage related that might be on people's minds is where are we at with customers, and we have had a big focus on making sure we make it as easy for our customers as possible who feel they were impacted to get in touch. We have had about just over 30,000 customers get in touch with us. Right now, we have processed credits totaling just under AUD 1 million, and they have been processed very quickly to customer accounts. We are working with a handful of our enterprise customers who, as you can imagine, have very specific services. They are on different contracts and have different service level arrangements depending on the services we are providing them.

Vicki Brady: They are only at the initial stages of that, so it is far too early to speculate about what that could look like. They need to complete their investigations. The other piece outage related that might be on people's minds is where are we at with customers. We've had a big focus on making sure we make it as easy for our customers as possible who feel they were impacted to get in touch. We've had just over 30,000 customers get in touch with us. Right now, we've processed credits totaling just under AUD 1 million. They've been processed very quickly to customer accounts. We're working with a handful of our enterprise customers who, as you can imagine, have very specific services. They're on different contracts and have different service level arrangements depending on the services we're providing them.

Speaker #2: Inflation's run higher. FX impacts. So there's a few things like that that we are balancing. What we're absolutely committed to doing, as you mentioned, is managing this project inside the 1.6 billion dollar envelope.

Speaker #3: We've had about just over 30,000 customers getting touched with us right now. We've processed credits totaling just under a million dollars and they've been processed very quickly to customer accounts.

Speaker #2: And that means we're absolutely prioritizing where we roll out to match customer demand and to match returns. Since announcing it back in February 2022, I mean, part of the benefit has been that engagement with customers, with potential customers, and really working out where demand is the strongest so we can match up how we roll out to meet that demand in the best possible way.

Speaker #3: And we're working with a handful of our enterprise customers who, as you can imagine, have very specific services. They're on different contracts and have different service level arrangements depending on the services we're providing them.

Vicki Brady: What we are absolutely committed to doing, as you mentioned, is managing this project inside the AUD 1.6 billion envelope, and that means we are absolutely prioritizing where we roll out to match customer demand and to match returns. Since announcing it back in February 2022, part of the benefit has been that engagement with customers, with potential customers, and really working out where demand is the strongest so we can match up how we roll out to meet that demand in the best possible way. But overall, it is a 30-year asset we are building, and we remain very confident in the demand for that infrastructure. As I said to one of the earlier questions, this is key digital infrastructure to help enable the country to be able to leverage technologies like AI.

Speaker #3: So just in terms of the outage, no. To be clear, we have not factored that into capex or any of the outlook or guidance numbers.

Speaker #3: So just in terms of the outage, no, to be clear, we have not factored that into capex or any of the outlook or guidance numbers and as I said, far too early to speculate in terms of any potential penalties.

Speaker #3: And as I said, far too early to speculate in terms of any potential penalties but Michael, do you want to touch on either any more on APU or talk a little bit about BAU capex?

Speaker #2: But overall, it is a 30-year asset. We're building and we remain very confident in the demand for that infrastructure. And as I said to one of the earlier questions, this is key digital infrastructure to help enable the country to be able to leverage technologies like AI.

Vicki Brady: So just in terms of the outage, no. To be clear, we have not factored that into CapEx or any of the outlook or guidance numbers. As I said, far too early to speculate in terms of any potential penalties. Michael, do you want to touch on either any more on ARPU or talk a little bit about BAU CapEx?

Speaker #3: But Michael, do you want to touch on either any more on APU or talk a little bit about BAU capex?

Vicki Brady: Just in terms of the outage, no. To be clear, we have not factored that into CapEx or any of the outlook or guidance numbers. As I said, far too early to speculate in terms of any potential penalties. Michael, do you want to touch on any more on ARPU or talk a little bit about BAU CapEx?

Speaker #5: No, thanks, Vicki. I won't comment anymore on APU. I think you covered that very well. I mean, I think of it as mix improving mix will be part of the APU story and that's what we're looking for NAP to help us deliver.

Speaker #5: No, thanks Vicky. I won't comment anymore on APU. I think you covered that very well. I mean, I think of it as mix improving mix will be part of the APU story and that's what we're looking for NAP to help us deliver.

Speaker #2: Just on the 800 million dollar investment that we announced so this is an additional 800 million over the next four years into our mobile network.

Speaker #5: So I think you covered that well. On BAU capex, I do think it's worthwhile just looking at a little bit about how our BAU capex has evolved over the last few years.

Michael Ackland: No. Thanks, Vicki. I will not comment anymore on ARPU. I think you covered that very well. I think of it as mix. Improving mix will be part of the ARPU story, and that is what we are looking for NAP to help us deliver. I think you covered that well. On BAU CapEx, I do think it is worthwhile just looking at a little bit about how our BAU CapEx has evolved over the last few years. We have seen quite a significant reduction in our IT CapEx, particularly as we have finished many of the big mass market digitization investments and how they have flowed through. Also, the huge redesign of our software delivery operating model and the benefits from AI that Kim talked about earlier, making us more efficient in the delivery of IT outcomes.

Speaker #5: So I think you covered that well. On BAU capex, I do think it's worthwhile just looking at a little bit about how our BAU capex has evolved over the last few years.

Michael Ackland: No, thanks, Vicki. I won't comment any more on ARPU. I think you covered that very well. I think of it as mix. Improving mix will be part of the ARPU story. That's what we're looking for NAP to help us deliver. I think you covered that well. On BAU CapEx, I do think it's worthwhile just looking a little bit about how our BAU CapEx has evolved over the last few years. We have seen quite a significant reduction in our IT CapEx, particularly as we've finished many of the big mass market digitization investments and how they've flowed through. Also, the huge redesign of our software delivery operating model and the benefits from AI that Kim talked about earlier, making us more efficient in the delivery of IT outcomes.

Speaker #2: The first thing I'd say is we already have by far the biggest network in the country. So we now have expanded our coverage already to 3 million square kilometers, 99.7% of the population.

Speaker #5: And so we have seen quite a significant reduction in our IT capex, particularly as we've finished many of the big mass market digitization investments and how they've flowed through.

Vicki Brady: Just on the AUD 800 million investment that we announced, this is an additional AUD 800 million over the next four years into our mobile network. The first thing I would say is we already have, by far, the biggest network in the country. We now have expanded our coverage already to 3 million square kilometers, 99.7% of the population. What this AUD 800 million is about, we have also been a real leader amongst the first few in the globe deploying new technology in mobile to be at its absolute best to support Australia and our customers. This spend is about investing in the hardware and the software to make sure our 5G network is the most advanced, the most resilient network it can possibly be, and a real leader in the Australian context. That is what that investment is about. In terms of AI changing all jobs, absolutely.

Speaker #2: What this 800 million is about, we've also been a real leader amongst the first few in the globe deploying new technology in mobile to be at its absolute best to support Australia and our customers.

Speaker #5: But also the huge redesign of our software delivery operating model and the benefits from AI that Kim talked about earlier, making us more efficient in the delivery of IT outcomes.

Speaker #5: We've got also got very focused and more efficient on how we invest in our data and connectivity and access capex in servicing our enterprise customers.

Speaker #2: And so this spend is about investing in the hardware and the software to make sure our 5G network is the most advanced, the most resilient, network it can possibly be, and a real leader in the Australian context.

Speaker #5: We've got also got very focused and more efficient on how we invest in our data and connectivity and access capex in servicing our enterprise customers.

Speaker #5: We're very focused on how we utilize the existing assets and we've taken some steps to improve the profitability of that business, which has freed up capex.

Michael Ackland: We have also got very focused and more efficient on how we invest in our data and connectivity, and access CapEx in servicing our enterprise customers. We are very focused on how we utilize the existing assets, and we have taken some steps to improve the profitability of that business, which has freed up CapEx. That has gone into accelerating our investment into the active network capabilities, including mobile, including core, across fixed and mobile, and also in our commitment to digital infrastructure. What is interesting in digital infrastructure is often when we build the active fiber, the passive fiber, which we are doing through Aura, for example, or when we get subsea cable. We will then light up that infrastructure for customers, and we have been investing in that. We talked about that, a little bit of that in the capacity that we have got in international.

Speaker #5: We're very focused on how we utilize the existing assets and we've taken some steps to improve the profitability of that business, which has freed up capex.

Speaker #2: That's what that investment is about. In terms of AI changing all jobs, absolutely. I'm having to change adapt my teams having to change adapt.

Michael Ackland: We have also got very focused and more efficient on how we invest in our data, connectivity, and access CapEx in servicing our enterprise customers. We are very focused on how we utilize the existing assets, and we have taken some steps to improve the profitability of that business, which has freed up CapEx. That has gone into accelerating our investment into the active network capabilities, including mobile, including core, across fixed and mobile, and also in our commitment to digital infrastructure. What is interesting in digital infrastructure is often when we build the active fiber, but the passive fiber, which we are doing through Aura, for example, or when we get subsea cable. We will then light up that infrastructure for customers, and we have been investing in that. We talked about that, a little bit of that in the capacity that we have got in international.

Speaker #5: And that has gone into accelerating our investment into the active network capabilities, including mobile, including core, across fixed and mobile, and also in our commitment to digital infrastructure.

Speaker #2: Some simple examples, even preparing for today, as I did that across the weekend. Again, AI is an amazing tool to help what sort of questions might I get after.

Speaker #5: So what's interesting in digital infrastructure is when we often when we build the active fiber, the passive fiber, which we're doing through Aura, for example, or when we get subsea cable, we will then light up that infrastructure for customers and we've been investing in that and we talked about that a little bit of that in the capacity that we've got in international.

Speaker #2: It didn't ask me this one, Jenny. So I might need to train it a little bit more. But getting it to help me with things like that, as I'm preparing to put together a speech, using it to brainstorm with in our leadership meetings with my team, how are we use it to help capture actions and follow up?

Vicki Brady: I am having to change, adapt. My team is having to change, adapt. Some simple examples, even preparing for today as I did that across the weekend. AI is an amazing tool to help. What sort of questions might I get asked? It did not ask me this one, Jenny, so I might need to train it a little bit more. But getting it to help me with things like that as I am preparing to put together a speech, using it to brainstorm with in our leadership meetings with my team, how we use it to help capture actions and follow up, how we use it to help summarize and digest information quickly. It has so many applications, and I would have to say, yep, we are all leaning into it right across Telstra from me all the way through the organization.

Speaker #5: And we've been investing in that and we talked about that a little bit of that in the capacity that we've got in international. So I would look at our BAU capex has been a trend over time that big lift as profitability has improved from 21 through to now.

Michael Ackland: What is interesting in digital infrastructure is often when we build the active fiber, but the passive fiber, which we are doing through Aura, for example, or when we get subsea cable. We will then light up that infrastructure for customers, and we have been investing in that. We talked about that, a little bit of that in the capacity that we have got in international.

Speaker #2: How are we use it to help summarize and digest information quickly? It has so many applications. And I'd have to say, yep, we're all leaning into it right across Telstra from me all the way through the organization and the more I use it, the more skilled I get at it.

Speaker #5: So I would look at our BAU capex has been a trend over time that big lift as profitability has improved from 21 through to now, the improving efficiency in our IT spend and the reallocation of that strongly into both our active and digital infrastructure side of networks.

Speaker #5: The improving efficiency in our IT spend and the reallocation of that strongly into both our active and digital infrastructure side of networks. And we expect that to continue.

Michael Ackland: I would look at our BAU CapEx has been a trend over time that big lift as profitability has improved from 2021 through to now, the improving efficiency in our IT spend and the reallocation of that strongly into both our active and digital infrastructure side of networks, and we expect that to continue.

Michael Ackland: I would look at our BAU CapEx has been a trend over time, that big lift as profitability has improved from 2021 through to now, the improving efficiency in our IT spend and the reallocation of that strongly into both our active and digital infrastructure side of networks, and we expect that to continue.

Speaker #2: I think the potential just only grows as I think about its capability and what it can do.

Speaker #5: And we expect that to continue.

Speaker #1: We'll take one more question from investors and analysts before we move to media. So again, if you are media on the call and you would like to ask a question, please press star one.

Speaker #1: Thanks, Jenny. Good questions. And thank you, Vicki. If media have just joined the Confluent call, you can register your questions by pressing star one.

Speaker #1: So our final analyst question will come from Scott Remore from oh, sorry. Scott Ryle from Remore. Sorry about that, Scott. Go ahead.

Speaker #1: So our final analyst question will come from Scott Remore from, oh, sorry, Scott Ryle from Remore. Sorry about that, Scott. Go ahead.

Vicki Brady: The more I use it, the more skilled I get at it. I think the potential just only grows as I think about its capability and what it can do.

Speaker #1: If you need to cancel a question, press star two. Our next question comes from Graham Lynch from Comms Day. Go ahead, Graham.

Nathan Burley: We will take one more question from investors and analysts before we move to media. Again, if you are media on the call and you would like to ask a question, please press star one. Our final analyst question will come from Scott Ryan from Rymor. Sorry about that, Scott. Go ahead.

Nathan Burley: We will take one more question from investors and analysts before we move to media. If you are a media on the call and you would like to ask a question, please press star one. Our final analyst question will come from Scott Ryle from Riemer. Sorry about that, Scott. Go ahead.

Speaker #6: No, you're right. Thank you. I've only got one question. Vicki, I wanted to ask you about the ability to, I guess, grow with the market on digital infrastructure, particularly given there is just so much capex coming both here and offshore.

Speaker #6: No, you're right. Thank you. I've only got one question. Vicky, I wanted to ask you about the ability to, I guess, grow with the market on digital infrastructure, particularly given there is just so much capex coming both here and offshore.

Speaker #4: Thank you, Steve. And good morning, Vicky and Michael. My question's regarding the 5G investment. There's a general consensus across global telcos that the investments to date in 5G haven't necessarily earned commensurate returns on the top and bottom line.

Steve Carey: Thanks, Jenny. Good questions, and thank you, Vicki. If media have just joined the conference call, you can register your questions by pressing star 1. If you need to cancel a question, press star 2. Our next question comes from Grahame Lynch from CommsDay. Go ahead, Grahame.

Scott Ryan: No, you are right. Thank you. I have only got one question. Vicki, I wanted to ask you about the ability to grow with the market on digital infrastructure, particularly given there is just so much CapEx coming both here and offshore. In answer to one of the earlier questions you talked about, well, not you. One of the other presenters talked about the infrastructure assets within the portfolio and looking at the potential to change the profile of those assets to fit with the changing demand of your customers. Obviously, the Aura network is really great because you have started that a few years ago, and that is really coming into its own now. Is there anything else you can do? I guess just as a left field idea, clearly power is a big issue.

Scott Ryall: No, you are right. Thank you. I have only got one question. Vicki, I wanted to ask you about the ability to grow with the market on digital infrastructure, particularly given there is just so much CapEx coming both here and offshore. In answer to one of the earlier questions you talked about, well, not you. One of the other presenters talked about the infrastructure assets within the portfolio and looking at the potential to change the profile of those assets to fit with the changing demand of your customers. Obviously, the Aura network is really great because you have started that a few years ago, and that is really coming into its own now. Is there anything else you can do? I guess just as a left field idea, clearly power is a big issue.

Scott Ryle: No, you are right. Thank you. I have only got one question. Vicki, I wanted to ask you about the ability to grow with the market on digital infrastructure, particularly given there is just so much CapEx coming both here and offshore. In answer to one of the earlier questions you talked about, one of the other presenters talked about the infrastructure assets within the portfolio and looking at the potential to change the profile of those assets to fit with the changing demand of your customers. I guess, obviously, the Aura Network is really great because you have started that a few years ago, and that is really coming into its own now. Is there anything else you can do? I guess just as a left field idea, clearly power is a big issue.

Scott Ryall: No, you are right. Thank you. I have only got one question. Vicki, I wanted to ask you about the ability to grow with the market on digital infrastructure, particularly given there is just so much CapEx coming both here and offshore. In answer to one of the earlier questions you talked about, one of the other presenters talked about the infrastructure assets within the portfolio and looking at the potential to change the profile of those assets to fit with the changing demand of your customers. I guess, obviously, the Aura Network is really great because you have started that a few years ago, and that is really coming into its own now. Is there anything else you can do? I guess just as a left field idea, clearly power is a big issue.

Speaker #6: In answer to one of the earlier questions, you talked about not you, some one of the other presenters talked about the infrastructure assets within the portfolio and looking at the potential to change the profile of those assets to fit with the changing demand of your customers.

Speaker #4: And I see in the press material today around this that there's a big focus on the word monetization, which really jumps out at me.

Grahame Lynch: Thank you, Steve, and good morning, Vicki and Michael. My question is regarding the 5G investment. There is a general consensus across global telcos that the investments to date in 5G have not necessarily earned commensurate returns on the top and bottom line. I see in the press material today around this that there is a big focus on the word monetization, which really jumps out at me. So what will make this investment different in terms of payoff, particularly for, as I say, the Telstra top line and bottom line?

Speaker #4: So what will make this investment different in terms of payoff, particularly for, as I say, the Telstra top line and bottom line?

Speaker #2: Yeah, thanks, Graham, for that. And I know you know the industry so well. So just firstly on 5G investment, I know there is a lot of talk about it globally.

Speaker #6: I guess obviously the Aura network is really great because you've started that a few years ago and that's really coming into its own now.

Speaker #2: If I can just put in perspective for us as we looked at our 5G case to invest, the really big driver of it was to be able to meet the sort of demand for data that we knew and could see coming to do that as efficiently as possible.

Speaker #6: Is there anything else you can do? And I guess just as a left field idea, clearly power is a big issue. You're one of the few industrial companies I speak to that's actually gone out and sourced 100% of your electricity consumption from renewable sources.

Vicki Brady: Yeah. Thanks, Grahame, for that, and I know you know the industry so well. Just firstly on 5G investment, I know there is a lot of talk about it globally. If I can just put in perspective for us as we looked at our 5G case to invest. The really big driver of it was to be able to meet the sort of demand for data that we knew and could see coming. To do that as efficiently as possible, 5G was essential. If we had not had 5G, the amount of CapEx and OpEx we would have had to deploy to try and deliver on that demand with our 4G network would have been vastly different. So there was already a case for 5G, just in terms of being able to efficiently meet the demand.

Speaker #2: 5G was essential. So if we hadn't had 5G, the amount of capex and opex we would have had to deploy to try and deliver on that demand with our 4G network would have been vastly different.

Speaker #6: I know it's not matched exactly with your usage, but it's at least over your consumption. So you've actually been in market and done a whole heap of enabling things in your business.

Scott Ryan: You are one of the few industrial companies I speak to that has actually gone out and sourced 100% of your electricity consumption from renewable sources. I know it is not matched exactly with your usage, but it is at least over your consumption. So you have actually been in market and done a whole heap of enabling things in your business. What else can you do that is outside just the assets that you own now?

Scott Ryall: You are one of the few industrial companies I speak to that has actually gone out and sourced 100% of your electricity consumption from renewable sources. I know it is not matched exactly with your usage, but it is at least over your consumption. So you have actually been in market and done a whole heap of enabling things in your business. What else can you do that is outside just the assets that you own now?

Scott Ryle: You're one of the few industrial companies I speak to that's actually gone out and sourced 100% of your electricity consumption from renewable sources. I know it's not matched exactly with your usage, but it's at least over your consumption. So you've actually been in market and done a whole heap of enabling things in your business. What else can you do that's outside just the assets that you own now?

Scott Ryall: You're one of the few industrial companies I speak to that's actually gone out and sourced 100% of your electricity consumption from renewable sources. I know it's not matched exactly with your usage, but it's at least over your consumption. So you've actually been in market and done a whole heap of enabling things in your business. What else can you do that's outside just the assets that you own now?

Speaker #2: So there was already a case for 5G just in terms of being able to efficiently meet the demand. And obviously, though, in terms of then further revenue being generated, I know there's lots of commentary around the world that it hasn't yet done that.

Speaker #6: What else can you do that's outside just the assets that you own now?

Speaker #3: Excellent. Wow. Thanks, Scott, for that. That's sort of a broad-reaching question. And look, the thing I'd say is just to your comment, I mean, we do have a big portfolio of infrastructure assets.

Speaker #3: Excellent. Wow. Thanks, Scott, for that. That's sort of a broad reaching question. And look, the thing I'd say is just to your comment, I mean, we do have a big portfolio of infrastructure assets.

Speaker #2: As I look at this investment and at the heart of this investment, we are investing in both hardware so it is Ericsson's latest radio access network equipment that is ORAN compliant.

Speaker #3: What we've been really, really clear on, though, is being incredibly disciplined about where our assets provide us an advantage and where our capability provides us an advantage.

Vicki Brady: Excellent. Wow. Thanks, Scott, for that. That is sort of a broad reaching question. The thing I would say is just to your comment, we do have a big portfolio of infrastructure assets. What we have been really clear on, though, is being incredibly disciplined about where our assets provide us an advantage and where our capability provides us an advantage. You mentioned Aura is a great example. It was actually February 2022 we announced that. So I am very glad that we made the decision back then to embark on the Aura build. To your point, it is coming into its own now with what is happening. These are the sorts of investments in infrastructure that you cannot decide today you need next month or next year or even 2 years' time. They take real time to build and invest in.

Speaker #3: What we've been really, really clear on though is being incredibly disciplined about where our assets provide us an advantage and where our capability provides us an advantage.

Vicki Brady: Obviously, though, in terms of then further revenue being generated, I know there is lots of commentary around the world that it has not yet done that. As I look at this investment, and at the heart of this investment, we are investing in both hardware. So it is Ericsson's latest radio access network equipment that is O-RAN compliant alongside software that is the full suite of 5G Advanced capability that leads us down the path further of self-healing and autonomous networks. I talked a little bit earlier in the session today that I think one of the shifts that we need to make as an industry and as Telstra, we are thinking deeply about is, as we build much more sophisticated capabilities on our network, what are the commercial models?

Vicki Brady: Excellent. Wow. Thanks, Scott, for that. That's a broad reaching question. The thing I'd say is, just to your comment, we do have a big portfolio of infrastructure assets. What we've been really, really clear on, though, is been incredibly disciplined about where our assets provide us an advantage and where our capability provides us an advantage. You mentioned Aura is a great example. It was actually February 2022 we announced that. So I am very glad that we made the decision back then to embark on the Aura build. To your point, it's coming into its own now with what's happening. These are the sorts of investments in infrastructure that you can't decide today, you need next month or next year or even two years' time. They take real time to build and invest in.

Speaker #2: Alongside software, that is the full suite of 5G advanced capability that leads us down the path further of self-healing and autonomous networks. I talked a little bit earlier in the session today that I think one of the shifts that we need to make as an industry and as Telstra, we're thinking deeply about is as we build much more sophisticated capabilities on our network, what are the commercial models so that as we expose that capability, we're not just packaging it up and including it, but we're making sure as value is created, we're shifting our commercial model to be able to achieve further value creation for our business.

Speaker #3: And you mentioned Aura is a great example. It was actually February 22, we announced that. So I am very glad that we made the decision back then to embark on the Aura build to your point.

Speaker #3: And you mentioned Aura is a great example. It was actually February 22 we announced that. So I am very glad that we made the decision back then to embark on the Aura build to your point.

Speaker #3: You know, it's coming into its own now with what's happening. These are the sorts of investments and infrastructure that you can't decide today. You need next month or next year or even two years' time.

Speaker #3: They take real time. To build and invest in. We also as we've spoken a little bit about today, you know, we continue to assess opportunities in terms of other infrastructure investments, whether that's more routes here in Australia that would make sense if the demand and customers are there.

Speaker #2: And so I see this investment, it's an important enabler. As our network moves to be much more software defined, as we move to a world in an open RAN environment where you can open up the ecosystem to more third-party innovation, so look, that's how I've been thinking about it, Graham.

Vicki Brady: So that as we expose that capability, we are not just packaging it up and including it, but we are making sure as value is created, we are shifting our commercial model to be able to achieve further value creation for our business. I see this investment, it is an important enabler as our network moves to be much more software-defined, as we move to a world in an Open RAN environment where you can open up the ecosystem to more third-party innovation. Look, that is how I have been thinking about it, Grahame. Hopefully that gives you my perspective.

Vicki Brady: We also, as we have spoken a little bit about today, we continue to assess opportunities in terms of other infrastructure investments, whether that is more routes here in Australia that would make sense if the demand and customers are there. We did recently expand our undersea cable capacity through two deals, one with Google and one with Keppel in Singapore. We see undersea cable demand as another area, particularly connecting Australia to the US and into Asia. We are definitely seeing shifts there and increasing demand. So as we do that, we will take into account our assets, our capability, where we can truly differentiate and, obviously, make good returns is a critical part of that, but also where we can partner. So undersea cable is a great example. I mentioned Google and Keppel. In both of those, we do partnerships.

Speaker #3: We're also we did recently expand our undersea cable capacity through a deal, two deals, one with Google and one with Keppel in Singapore. We see undersea cable demand as another area particularly connecting Australia to the US and into Asia we are definitely seeing shifts there and increasing demand.

Vicki Brady: We also, as we've spoken a little bit about today, we continue to assess opportunities in terms of other infrastructure investments, whether that's more routes here in Australia that would make sense if the demand and customers are there. We did recently expand our undersea cable capacity through two deals, one with Google and one with Keppel in Singapore. We see undersea cable demand as another area, particularly connecting Australia to the US and into Asia. We are definitely seeing shifts there and increasing demand. So as we do that, we'll take into account our assets, our capability, where we can truly differentiate and, obviously, make good returns is a critical part of that. But also where we can partner. Undersea cable is a great example. I mentioned Google and Keppel. In both of those, we do partnerships.

Speaker #3: We're also we did recently expand our undersea cable capacity through a deal, two deals, one with Google and one with Keppel in Singapore. We see undersea cable demand as another area particularly connecting Australia to the US and into Asia, we are definitely seeing shifts there and increasing demand.

Speaker #2: So hopefully that gives you my perspectives.

Speaker #4: Thank you.

Speaker #1: Thanks, Graham, for those questions. Our next caller with questions is Christine Chen from Reuters. Christine, please go ahead.

Speaker #3: So as we do that, we will take into account our assets, our capability, where we can truly differentiate and, you know, obviously make good returns is a critical part of that.

Speaker #5: Thank you. And good morning, everyone. Just wanted to ask about your deal with Starlink for texting in rural areas. Do you think there's still poses any risks in terms of being reliant on Elon Musk, given his past disputes with governments and regulators including the Australian government?

Speaker #3: But also where we can partner. So undersea cable is a great example. I mentioned Google and Keppel. In both of those, we did partnerships.

Speaker #3: But also where we can partner. So undersea cable is a great example. I mentioned Google and Keppel. In both of those, we did partnerships so there is the ability to approach some of these things in different ways, but ultimately we want to make sure we're there to deliver our customers their needs not just today but partnering with them in a strategic way to make sure we're there, where we've got the assets and the capability to be able to support their future growth, the growth of Australia and as Steven spoke very well too, you know, having Australian based infrastructure and assets where we can invest, where that helps generate economic value inside the country and helps it Australia up to be not only, you know, utilize AI as a country, but how we might become a hub, whether that's for Asia, whether that's for the southern hemisphere in terms of how things play out.

Grahame Lynch: Thank you.

Steve Carey: Thanks, Grahame, for those questions. Our next caller with questions is Christine Chen from Reuters. Christine, please go ahead.

Speaker #3: So there is the ability to approach some of these things in different ways, but ultimately we want to make sure we're there to deliver our customers their needs, not just today, but partnering with them in a strategic way to make sure we're there, where we've got the assets and the capability to be able to support their future growth, the growth of Australia and as Steven spoke very well too, you know, having Australian-based infrastructure and assets where we can invest, where that helps generate economic value inside the country and helps it Australia up to be not only, you know, utilize AI as a country, but how we might become a hub, whether that's for Asia, whether that's for the southern hemisphere in terms of how things play out.

Speaker #5: And if so, have you put any guardrails in place to ensure service delivery?

Christine Chen: Thank you, and good morning, everyone. Just wanted to ask about your deal with Starlink for texting in rural areas. Do you think this deal poses any risks in terms of being reliant on Elon Musk, given his past disputes with governments and regulators, including the Australian government? If so, have you put any guardrails in place to ensure service delivery?

Speaker #2: Thanks, Christine, for that. So first thing I'd say is the LEO satellite space is a very exciting space. The level of innovation and what's happening there I don't think anyone predicted 10 years ago.

Vicki Brady: There is the ability to approach some of these things in different ways. But ultimately, we want to make sure we are there to deliver our customers their needs, not just today, but partnering with them in a strategic way to make sure we are there, where we have got the assets and the capability to be able to support their future growth, the growth of Australia. And as Steven Worrall spoke very well to, having Australian-based infrastructure and assets where we can invest, where that helps generate economic value inside the country and helps set Australia up to not only utilize AI as a country, but how we might become a hub, whether that is for Asia, whether that is for the Southern Hemisphere in terms of how things play out. I think there are opportunities there.

Vicki Brady: There is the ability to approach some of these things in different ways. But ultimately, we want to make sure we're there to deliver our customers their needs, not just today, but partnering with them in a strategic way to make sure we're there, where we've got the assets and the capability to be able to support their future growth, the growth of Australia. As Stephen spoke very well to, having Australian-based infrastructure and assets where we can invest, where that helps generate economic value inside the country and helps set Australia up to not only utilize AI as a country, but how we might become a hub, whether that's for Asia, whether that's for the Southern Hemisphere in terms of how things play out. I think there are opportunities there.

Speaker #2: So it's quite extraordinary to see. We actually have relationships and a working with a number of LEO satellite providers. So as an example, we use OneWeb for backhaul on our mobile site.

Vicki Brady: Thanks, Christine, for that. First thing I would say is the LEO satellite space is a very exciting space. The level of innovation and what is happening there, I do not think anyone predicted 10 years ago. It is quite extraordinary to see. We actually have relationships and are working with a number of LEO satellite providers. As an example, we use OneWeb for backhaul on our mobile site. That is connecting some of our remote sites back into our core network. We have a relationship with Starlink that started last year as we launched our home satellite internet service. In January, we announced an extension to go into direct-to-handset outdoor text messaging.

Speaker #2: So that's connecting some of our remote sites back into our core network. We have a relationship with Starlink that started last year as we launched our home satellite internet service.

Speaker #2: And then, yes, in January, we announced an extension to go into direct-to-handset outdoor text messaging. I think the thing for me is what we focus on in these relationships is how do we partner, how do we invest to make sure we bring Australians the most innovative technology to be able to meet their needs?

Speaker #3: I think there are opportunities there, but I can assure you our focus is very much on being disciplined and where we have competitive advantages that we can leverage and then of course partnerships and how we work with others is also an important element as we think about those things.

Vicki Brady: But I can assure you, our focus is very much on being disciplined and where we have competitive advantages that we can leverage. Then, of course, partnerships and how we work with others is also an important element as we think about those things. But right now, I feel we are in a good position. Aura Network investment, pleased we made that call back in February 2022. We have got to focus on finishing it, delivering all of the routes, making sure we have really utilized that capacity and have those deals in place. But, yeah, we continue to assess future opportunity as well.

Speaker #3: But right now, I feel we're in a good position. Aura investment, please, we made that call back in February 22. We got to focus on finishing it, delivering all of the routes, making sure we've really utilized that capacity and have those deals in place.

Speaker #2: And what's exciting, what Starlink's doing, and they're absolutely a leader in this space in terms of launching direct-to-handset. So we have a great partnership with them.

Vicki Brady: But I can assure you, our focus is very much on being disciplined and where we have competitive advantages that we can leverage. Of course, partnerships and how we work with others is also an important element as we think about those things. But right now, I feel we are in a good position. Aura investment, pleased we made that call back in February 2022. We have to focus on finishing it, delivering all of the routes, making sure we have really utilized that capacity and have those deals in place. But, yeah, we continue to assess future opportunity as well.

Vicki Brady: I think the thing for me is what we focus on in these relationships is how do we partner, how do we invest to make sure we bring Australians the most innovative technology to be able to meet their needs? What is exciting, what Starlink is doing, and they are absolutely a leader in this space in terms of launching direct-to-handset. So we have a great partnership with them. We work across their team to make sure we can bring these technologies to market as soon as they are ready to go. So, look, it is a great partnership with Starlink. They are a good team to work with. We have seen that in our home satellite broadband product, and we are in testing now on direct-to-handset and looking forward to bringing that to market in the coming months.

Speaker #3: We got to focus on finishing it, delivering all of the routes, making sure we've really utilized that capacity and have those deals in place.

Speaker #2: We work across their team to make sure we can bring these technologies to market as soon as they're ready to go. And so look, it's a great partnership with Starlink.

Speaker #3: But yeah, we continue to assess future opportunity as well.

Speaker #2: They're a good team to work with. We've seen that in our home satellite broadband product and we're in testing now on direct-to-handset and looking forward to bringing that to market in the coming months.

Speaker #6: Thank you.

Speaker #1: That was our final analyst question. And we thank the analysts for their questions. We will now shift pause for a short break. After which we will start the media Q&A, which will be hosted by my colleague Steve Carey.

Speaker #6: Thank you.

Speaker #1: That was our final analyst question and we thank the analysts for their questions. We will now shift pause for a short break. After which we will start the media Q&A, which will be hosted by my colleague Steve Carey.

Speaker #1: Thanks, Christine. Our final question today comes from Sasha Karen from ARN. Sasha, go ahead with your questions, please.

Speaker #1: Thank you.

Steve Carey: Okay. Thank you.

Scott Ryall: Okay. Thank you.

Speaker #1: Thank you.

Nathan Burley: That was our final analyst question. We thank the analysts for their questions. We will now just pause for a short break, after which we will start the media Q&A, which will be hosted by my colleague, Steve Carey. Thank you.

Scott Ryle: Okay. Thank you.

Scott Ryall: Okay. Thank you.

Nathan Burley: That was our final analyst question, and we thank the analysts for their questions. We will now just pause for a short break, after which we will start the media Q&A, which will be hosted by my colleague, Steve Carey. Thank you.

Speaker #6: Cheers. Good morning, everyone. Look, I had two questions here on first, in regards to the NIS business. On restructuring and product lines changing, how has that been achieved?

Speaker #7: Chelsea Watch Plan with Apple Watch.

Speaker #7: Tell us your watch plan with Apple Watch.

Steve Carey: Thanks, Christine. Our final question today comes from Sasha Karen from ARN. Sasha, go ahead with your questions, please.

Speaker #6: Is there any is there still more work to do there? And I also wanted to ask, it's been mentioned previously today about the joint venture with Combank as part of Quantium Telstra.

Sasha Karen: Cheers. Good morning, everyone. Look, I had two questions here on, first, in regards to the NAS business. On restructuring and product lines changing, how has that been achieved? Is there still more work to do there? I also wanted to ask, it has been mentioned previously today about the joint venture with CommBank as part of Quantium Telstra, with the Fraud Indicator solution being made available to partners shortly. Are you able to elaborate on this element further, how Fraud Indicator will be made available to partners, and in what form?

Operator: Telstra Watch Plan. With Apple Watch. Whoa!

Jacquelin Robson: Telstra Watch Plan with Apple Watch.

[Video Narrator]: Telstra Watch Plan with Apple Watch.

Speaker #6: With the fraud indicator solution, being made available to partners, shortly, are you able to elaborate on this element further, how fraud indicator will be made available to partners?

Speaker #6: And in what form?

Speaker #2: Thanks. Thanks, Sasha, for that. So firstly, on our NAS business, so this is our network application and services business inside Telstra Enterprise. We spoke about last year going through a reset of our enterprise business.

Speaker #2: That is progressing well. A key element of that is a simplification of our NAS product portfolio. So over several years, we're looking to reduce that portfolio by around two-thirds.

Vicki Brady: Thanks. Thanks, Sasha, for that. So firstly, on our NAS business. So this is our Network Applications and Services business inside Telstra Enterprise. We spoke about last year going through a reset of our enterprise business. That is progressing well. A key element of that is a simplification of our NAS product portfolio. So over several years, we are looking to reduce that portfolio by around two-thirds. That is because it has become evident where we are at our best is our core connectivity and those services that sit very close to our core connectivity. So that work is ongoing. That has included making sure we have got our resources well lined up to be able to deliver to those products and services. That has had some impacts through the changes we announced last year.

Speaker #2: That's because it's become evident where we're at our best is our core connectivity services that's very close to our core connectivity. So that work is ongoing.

Speaker #2: That has included making sure we've got our resources well lined up to be able to deliver to those products and services that has had some impacts through the changes we announced last year.

Speaker #2: We absolutely have more work to do. And we've still progressing that reset work for our network applications and services business. But Oliver and the team have made good initial progress on that.

Speaker #1: Good morning and welcome back to the Telstra full year 26 results. We will now move to media Q&A. My name is Steve Carey and I'm the GM of media here at Telstra.

Speaker #2: In terms of the work we've been doing with CBA, so with the Quantium Telstra joint venture, Telstra and CBA have come together to work on ways that we can help keep our joint customers more safe.

Speaker #1: Good morning and welcome back to the Telstra full year 26 results. We will now move to media Q&A. My name is Steve Carey and I'm the GM of media here at Telstra.

Vicki Brady: We absolutely have more work to do, and we are still progressing that reset work for our Network Applications and Services business. Oliver and the team have made good initial progress on that. In terms of the work we have been doing with CBA, with the Quantium Telstra joint venture, Telstra and CBA have come together to work on ways that we can help keep our joint customers more safe. That has been through our Scam Indicator, and more recently, we have extended that to our Fraud Indicator. This has been a great collaboration. We are working to see how we can expand that to more players in the telco industry and to more banks because we know it is a team sport. At the end of the day, keeping Australians safe requires cross-sector work.

Speaker #1: In this session, we will have Vicki Brady, our CEO, and Michael Ackland, our CFO. Addressing questions and available to address questions from the media.

Speaker #1: In this session, we will have Vicky Brady, our CEO, and Michael Ackland, our CFO. Addressing questions and available to address questions from the media.

Steve Carey: Good morning and welcome back to the Telstra Full Year 2026 results. We will now move to media Q&A. My name is Steve Carey, and I am the GM of media here at Telstra. In this session, we will have Vicki Brady, our CEO, and Michael Ackland, our CFO, addressing questions and available to address questions from the media. If you have not registered for questions, please do so on the conference call by pressing star then 1. If you wish to cancel your question, please press star then 2. For operator assistance, please press star then 0. Our first question today comes from David Swan from The Sydney Morning Herald and The Age. Please go ahead, David.

Speaker #2: And that's been through our scam indicator and more recently, we've extended that to our fraud indicator. So this has been a great collaboration. We are working to see how we can expand that to more players in the telco industry and to more banks because we know it's a team sport.

Steve Carey: Good morning, and welcome back to the Telstra Full Year 2026 results. We will now move to media Q&A. My name is Steve Carey, and I am the GM of media here at Telstra. In this session, we will have Vicki Brady, our CEO, and Michael Ackland, our CFO, addressing questions and available to address questions from the media. If you have not registered for questions, please do so on the conference call by pressing star then one. If you wish to cancel your question, please press star then two. For operator assistance, please press star then zero. Our first question today comes from David Swan from The Sydney Morning Herald and The Age. Please go ahead, David.

Speaker #1: If you haven't registered for questions, please do so. On the conference call, by pressing star then one. If you wish to cancel your question, please press star then two.

Speaker #1: For operator assistance, please press star then zero. Our first question today comes from David Swan from the SMH and the age. Please go ahead, David.

Speaker #2: At the end of the day, keeping Australians safe requires cross-sector work. And so that work is ongoing with Quantium Telstra, leading those discussions and working cross-sector to see how we might be able to expand that further.

Speaker #2: Thanks very much. Thanks for the words, guys, for taking some questions. Got three. Firstly, I know obviously not captioning the results here, but I just wanted to ask if the July outage has cost you any retail customers since June 30.

Speaker #5: Thanks very much. Thanks for the words, guys, for taking some questions. Got three. Firstly, I know obviously not captioning the results here, but I just wanted to ask if the July outage has cost you any retail customers since June 30.

Speaker #1: Thanks, Sasha. We do have one more caller. Who has joined us? Alex Zahavroyt from Tech Advice Life. Alex, go ahead with your question, please.

David Swan: Thanks very much. Thanks always, guys, for taking some questions. I have three. Firstly, I know obviously not captured in the results here, but I just wanted to ask if the July outage has cost you any retail customers since 30 June, and if so, to what extent? Secondly, Vicki, the board docked your STI by 20 percentage points over the outage. Your total remuneration still reached AUD 6.8 million. Do you feel that a partial bonus reduction is a sufficient penalty for what was a nationwide outage that affected emergency calls? And third, I wanted to ask just about ARPU. The analysts covered this a little bit, but with average monthly mobile bills up 3.8%, is there a point in which retail customers reach a tipping point on price hikes, given that it seems your customer growth has come almost entirely from MVNOs on lower margins?

David Swan: Thanks very much. Thanks always, guys, for taking some questions. Got three. Firstly, I know obviously not captured in the results here, but I just wanted to ask if the July outage has cost you any retail customers since 30 June? If so, to what extent? Secondly, Vicki, the board docked your STI by 20 percentage points over the outage. Your total remuneration still hits AUD 6.8 million. Do you feel that a partial bonus reduction is a sufficient penalty for what was a nationwide outage that affected emergency calls? Third, I wanted to ask just about ARPU. The analysts covered this a little bit, but with average monthly mobile bills up 3.8%, is there a point in which retail customers reach a tipping point on price hikes, given that it seems your customer growth has come almost entirely from MVNOs on lower margins?

Speaker #2: And if so, to what extent? Secondly, Vicki, the board doc, your FCI by 20 percentage points over the outage. Your total remuneration still reached 6.8 million.

Vicki Brady: That work is ongoing with Quantium Telstra leading those discussions and working cross-sector to see how we might be able to expand that further.

Speaker #5: And if so, to what extent? Secondly, Vicky, the board doc, your SDI by 20 percentage points over the outage. Your total remuneration still reached 6.8 million.

Speaker #7: Thank you very much. Yes, I thought I was going to miss out. So I'm very glad that you've added me at the end here.

Speaker #7: Will Telstra upgrade its capped data speeds after using all your mobile allocation to at least two megabits per second to match rotor phone? I did ask previous year Andy Penn about this at a briefing in CES in Las Vegas a few years ago, but I heard nothing back.

Speaker #2: Do you feel that a partial bonus reduction is a sufficient penalty for what was a nationwide outage that affected emergency calls? And third, I wanted to ask just about APU, the analysts covered this a little bit, but with average monthly mobile bills up 3.8%, is there a point in which retail customers reach a tipping point on price hikes given that it seems your customer growth has come almost entirely from MVNOs on lower margins?

Steve Carey: Thanks, Sasha. We do have one more caller who has joined us, Alex Zaharov-Reutt from TechAdvice.Life. Alex, go ahead with your question, please.

Speaker #5: Do you feel that a partial bonus reduction is a sufficient penalty for what was a nationwide outage that affected emergency calls? And third, I wanted to ask just about APU, the analysts covered this a little bit, but with average monthly mobile bills up 3.8%, is there a point in which retail customers reach a tipping point on price hikes given that it seems your customer growth has come almost entirely from MVNOs on lower margins?

Speaker #7: Secondly, with Telstra having switched on its 5G network in 2018 alongside its 5G innovation center on the Gold Coast, do you think history will repeat itself with a 2028 start date for an initial 6G rollout?

Alex Zaharov-Reutt: Thank you very much. Yes, I thought I was going to miss out, so I am very glad that you have added me at the end here. Will Telstra upgrade its capped data speeds after using all your mobile allocation to at least 2 megabits per second to match Vodafone? I did ask previous CEO, Andy Penn, about this at a briefing in CES in Las Vegas a few years ago, but I heard nothing back. Secondly, with Telstra having switched on its 5G network in 2018 alongside its 5G Innovation Center on the Gold Coast, do you think history will repeat itself with a 2028 start date for an initial 6G rollout? What testing is already underway at the Innovation Center on this next-gen network that is expected to power connectivity in the 2030s? Will you expand your 5G home network in more areas or more availability in existing suburbs?

Speaker #7: And what testing is already underway at the innovation center on this next-gen network that is expected to power connectivity in the 2030s? Will you expand your 5G home network in more areas or more availability in existing suburbs?

David Swan: Third, I wanted to ask just about ARPU. The analysts covered this a little bit, but with average monthly mobile bills up 3.8%, is there a point in which retail customers reach a tipping point on price hikes, given that it seems your customer growth has come almost entirely from MVNOs on lower margins?

Speaker #2: And can customers still stump price hikes when some of that network reliability is being called into question? Thanks very much.

Speaker #5: And can customers still stump price hikes when some of that network reliability is being called into question? Thanks very much.

Speaker #7: And will you upgrade at some point to a third-gen 5G home modem with the newer and faster 5G advanced tech if the second generation modems aren't already capable?

Speaker #3: Thanks. Thanks for that, David. Appreciate those three questions. So let me take them one by one. Just in terms of the outage and impact on customers, first thing I wanted to just acknowledge was really to thank our customers for their patience and understanding during the outage.

Speaker #7: And finally, will boost and other MVNOs ever get access to eSIM activation in smartwatches, which is at the moment globally it appears to be relegated to the top-tier carriers?

David Swan: Can customers still stomach price hikes when some of that network reliability is being called into question? Thanks very much.

Alex Zaharov-Reutt: Will you upgrade at some point to a third-gen 5G home modem with the newer and faster 5G Advanced tech if the second generation modems aren't already capable? Finally, will Boost and other MVNOs ever get access to eSIM activation in smartwatches? At the moment, globally, it appears to be relegated to the top-tier carriers. Thank you.

Vicki Brady: Thanks for that, David. Appreciate those three questions. Let me take them one by one. Just in terms of the outage and impact on customers. First thing I wanted to acknowledge was really to thank our customers for their patience and understanding during the outage. I know it was frustrating. It is not where we wanted to be. I do appreciate their patience and understanding. In terms of the impact we have seen in terms of customer numbers post the outage. Of course, on the day itself there was some small impact. We have now seen no material impact in terms of customers leaving us post the outage nor customers choosing to join us. Again, I do not take that for granted, nor do any of the team at Telstra. We do, again, really appreciate our customers' understanding.

Speaker #7: Thank you.

Speaker #3: I know it was frustrating; it's not where we wanted to be. And I do appreciate their patience and understanding. In terms of the impact we've seen, in terms of customer numbers, post the outage, of course on the day itself, there was some small impact, but we have now seen and no material impact in terms of customers leaving us post the outage nor customers choosing to join us.

Speaker #2: Wow, there's quite a lot of questions there. Thanks, Alex, for that. You've covered a lot of very quickly. Just on the capped data speeds, would you I don't know if you're still online.

Vicki Brady: Thanks for that, David. Appreciate those three questions. Let me take them one by one. Just in terms of the outage and impact on customers. First thing I wanted to just acknowledge was really to thank our customers for their patience and understanding during the outage. I know it was frustrating. It is not where we wanted to be. I do appreciate their patience and understanding. In terms of the impact we have seen in terms of customer numbers post the outage. Of course, on the day itself, there was some small impact. We have now seen no material impact in terms of customers leaving us post the outage, nor customers choosing to join us. Again, I do not take that for granted, nor do any of the team at Telstra. We do, again, really appreciate our customers' understanding.

Speaker #2: Or not. I was just curious to understand that question a bit better.

Speaker #7: When you go sorry, yeah, when you go over the your limit, you know, your 10, 20, 30 gigabytes per month, you'll slow down to 1.5 megabit capped speeds.

Speaker #1: A small impact , but we have now seen and no material impact in in terms of customers leaving us post the outage , nor customers choosing to join us .

Vicki Brady: Wow. There's quite a lot of questions there. Thanks, Alex, for that. You've covered a lot off very quickly. Just on the capped data speeds, I don't know if you're still online or not. I was just curious to understand that question a bit better.

Speaker #7: Now, Vodafone up that to two megabits. And they even had faster, but they got rid of the faster speeds quickly because people were abusing it.

Speaker #3: And again, I don't take that for granted nor do any of the team at Telstra, and we do again really appreciate our customers' understanding and we're very, very focused on making sure all of the lessons from that outage we take those lessons and we implement the changes to make sure we come out the other side with an even stronger and more resilient network.

Speaker #1: And again , I don't take that for granted , nor do any of the team at Telstra . And we do again , really appreciate our customers understanding and we're very , very focused on making sure all of the lessons from that outage .

Speaker #7: And it's look, it's just 512K bits per kilobits per second extra. But I guess it helps those people who are on low incomes that have gone over their limits.

Alex Zaharov-Reutt: Maybe we're full.

Steve Carey: Maybe we're full.

Alex Zaharov-Reutt: Sorry, yeah. When you go over your limit, 10, 20, 30 gigabytes per month,

Speaker #2: Yeah, no, I think you've got it. I understand your question now. Look, obviously, the consumer teams are always working on the proposition. What are the things that matter most to customers?

Vicki Brady: Oh, yes.

Alex Zaharov-Reutt: You were slowed down to 1.5 megabit capped speeds.

Speaker #1: We take those lessons and we implement the changes to make sure we come out the other side with a even stronger and more resilient network .

Vicki Brady: Got it.

Alex Zaharov-Reutt: Now, Vodafone upped that to 2 megabits, and they even had faster, but they got rid of the faster speeds quickly because people were abusing it. Look, it's just 512 kilobits per second extra, but I guess it helps those people who are on low incomes that have gone over their limits.

Speaker #2: How does it all come together in the best value proposition that can meet their needs? I won't preempt them on what they've got coming in the future.

Speaker #3: So no significant impacts there to date. Second question, just in terms of my remuneration for the year. The first thing I would say at the outset as I said, when I addressed the immediate shortly after the outage, as CEO, ultimate accountability rests with me for the outage.

Vicki Brady: We are very, very focused on making sure all of the lessons from that outage, we take those lessons and we implement the changes to make sure we come out the other side with an even stronger and more resilient network. So no significant impacts there to date. Second question, just in terms of my remuneration for the year. The first thing I would say at the outset, as I said when I addressed the media shortly after the outage. As CEO, ultimate accountability rests with me for the outage. You will have seen, as you referenced in our remuneration report, the board did make some decisions, and I thought I would share a little bit of how they reached their judgment. First off, you will see that myself, and the senior executive team did have our remuneration reduced for FY22.

Speaker #1: So no significant impacts there to date . Second question , just in terms of my remuneration for the year , the first thing I would say at the outset , as I said , when I addressed the media shortly after the outage as CEO Ultimate accountability rests with me for the outage and you will have seen , as you referenced in our remuneration report , the board did make some decisions and I thought I'd share a little bit of how they reached their judgement .

Vicki Brady: And we are very, very focused on making sure all of the lessons from that outage, we take those lessons and we implement the changes to make sure we come out the other side with an even stronger and more resilient network. So no significant impacts there to date. Second question, just in terms of my remuneration for the year. The first thing I would say at the outset, as I said when I addressed the media shortly after the outage. As CEO, ultimate accountability rests with me for the outage. You will have seen, as you referenced in our remuneration report, the board did make some decisions, and I thought I would share a little bit of how they reached their judgment. First off, you will see that myself and the senior executive team did have remuneration reduced for FY2026.

Speaker #2: But look, we look at that overall bundle of benefits that we provide. Obviously, our mobile network is by far the leading network in the country.

Vicki Brady: Yeah. No, thank you. Got it. I understand your question now. Look, obviously, the consumer teams are always working on the proposition, what are the things that matter most to customers? How does it all come together in the best value proposition that can meet their needs? I won't preempt them on what they've got coming in the future. But look, we look at that overall bundle of benefits that we provide. Obviously, our mobile network is by far the leading network in the country, so that's a core part of our proposition. So I won't delve into what we might and might not do on those capped speeds going forward. Just in terms of 5G, you're right. Whether it's 3G, 4G, 5G, Telstra's been right at the forefront of bringing new mobile technology to Australia.

Speaker #2: So that's a core part of our proposition. So I won't delve into what we might and might not do on those capped speeds going forward.

Speaker #3: And you will have seen as you referenced in our remuneration report, the board did make some decisions. And I thought I'd share a little bit of how they reached their judgment.

Speaker #2: Just in terms of 5G, you're right, whether it's 3G, 4G, 5G, Telstra has been right at the forefront of bringing new mobile technology to Australia.

Speaker #3: So first off, you will see that myself and the senior executive team did have remuneration reduced for FY26. For me, that was 20 point reduction in my short-term bonus.

Speaker #1: So first off , you will see that myself and the senior executive team did have remuneration reduced for FY 26 . For me , that was 20 point reduction in my short term bonus and informing that view .

Speaker #2: It goes to the heart of our leadership position and wanting to make sure Australians get access as early as possible and be amongst the first countries in the globe getting that.

Speaker #3: And in forming that view, the board really looked at our initial investigation where we've been very transparent. There were things within our control that triggered the outage.

Vicki Brady: First off, you will see that myself and the senior executive team did have remuneration reduced for FY2026. For me, that was a 20-point reduction in my short-term bonus. In forming that view, the board really looked at our initial investigation where we have been very transparent. There were things within our control that triggered the outage, and so they formed the view that it was appropriate to recognize that, and accountability was taken in the form of adjustment to FY2026 remuneration.

Speaker #2: Look, 6G, it's good timing to ask that. The week after next, it's mobile world congress over in Barcelona where the mobile industry comes together.

Speaker #1: The board really looked at our initial investigation where we've been very transparent . There were things within our control that triggered the outage .

Vicki Brady: For me, that was a 20-point reduction in my short-term bonus. In forming that view, the board really looked at our initial investigation where we have been very transparent. There were things within our control that triggered the outage, so they formed the view that it was appropriate to recognize that, and accountability was taken in the form of adjustment to FY22 remuneration. The second thing I would say is the expert investigation is still underway, and so as those findings are finalized, as we have a chance to look at those, of course, if the board see reason to have more accountability demonstrated through remuneration, that will happen through FY22. The third thing I would say is we have set our targets for myself and the leadership team for FY22. They are based on the corporate plan that the board signed off in June pre the outage.

Speaker #3: And so they formed the view that it was appropriate to recognize that and accountability was taken in the form of adjustment to FY26 remuneration.

Vicki Brady: For me, that was a 20-point reduction in my short-term bonus. In forming that view, the board really looked at our initial investigation where we have been very transparent. There were things within our control that triggered the outage, and so they formed the view that it was appropriate to recognize that, and accountability was taken in the form of adjustment to FY2026 remuneration. The second thing I would say is the expert investigation is still underway. As those findings are finalized, as we have a chance to look at those, of course, if the board see reason to have more accountability demonstrated through remuneration, that will happen through FY2027. The third thing I would say is we have set our targets for myself and the leadership team for FY2027. They are based on the corporate plan that the board signed off in June pre the outage.

Vicki Brady: It goes to the heart of our leadership position and wanting to make sure Australians get access as early as possible and be amongst the first countries in the globe getting that. Look, 6G, it's good timing to ask that. The week after next, it's Mobile World Congress over in Barcelona, where the mobile industry comes together, and I expect there will be a lot of conversations about 6G. That sort of timing, 2028, 2029, that's certainly what I understand. Although I'm sure coming out of that congress, we'll get more information and hear a lot more from vendors and the industry. But like we've done 3G, 4G, 5G, I would see Telstra looking to be at the forefront when that technology is ready. When it is able to bring benefits to our customers, of course, we'd be looking to be early in that.

Speaker #2: And I expect there will be a lot of conversations about 6G, that sort of timing, 2028, 2029, that certainly what I understand, although I'm sure coming out of that congress we'll get more information and hear a lot more from vendors and the industry.

Speaker #1: And so they formed the view that it was appropriate to recognise that and accountability was taken in the format of adjustment to FY 26 remuneration .

Speaker #3: The second thing I'd say is the expert investigation is still underway. And so as those findings are finalized, as we have a chance to look at those of course, if the board see reason to have more accountability demonstrated through remuneration, that will happen through FY27.

Speaker #1: The second thing I'd say is the expert investigation is still underway . And so as those findings are , are finalised , as we have a chance to look at those , of course , if the board see reason to have more accountability demonstrated through remuneration , that will happen through FY 27 .

Speaker #2: But like we've done 3G, 4G, 5G, I would see Telstra looking to be at the forefront when that technology is ready and when it is able to bring benefits to our customers of course, we'd be looking to be early in that.

Vicki Brady: The second thing I would say is the expert investigation is still underway. As those findings are finalized, as we have a chance to look at those, of course, if the board see reason to have more accountability demonstrated through remuneration, that will happen through FY2027. The third thing I would say is we have set our targets for myself and the leadership team for FY2027. They are based on the corporate plan that the board signed off in June pre the outage.

Speaker #3: And then the third thing I would say is we have set our targets for myself and the leadership team for FY27. They are based on the corporate plan that the board signed off in June pre the outage.

Speaker #2: Just in terms of our 5G home network, and our fixed wireless proposition expanding that, to be very clear, how we think about that, obviously, our mobile network is incredibly important to our big mobile base of customers.

Speaker #1: And then the third thing I would say is we have set our targets for myself and the leadership team for FY 27 . They are based on the corporate plan that the board signed off in June pre the outage .

Speaker #3: So there has been no allowance made in our FY27 targets in terms of any lead way for the outage, which is entirely appropriate. So just sharing some of the thinking that went into the board's decision around remuneration.

Speaker #1: So there has been no allowance made in our FY 27 targets in terms of any leeway for the outage , which is entirely appropriate .

Speaker #2: So we think about it where we have opportunity. Where there is capacity available, where we can use it effectively for fixed wireless access, where very pleased with the growth in that, but it is not a open everything up.

Vicki Brady: Just in terms of our 5G home network, and our fixed wireless proposition expanding that. To be very clear how we think about that, obviously, our mobile network is incredibly important to our big mobile base of customers. So we think about it where we have opportunity, where there is capacity available, where we can use it effectively for fixed wireless access. We're very pleased with the growth in that, but it is not an open everything up. We want to make sure that experience for our mobile users, we maintain that. So we are selective, and if you go in store or online, you will see that when you do that check. But the business is doing well and pleased with the growth in that business. On the smart modem, will it go to 5G? Again, that's all part of our proposition for our customers.

Speaker #1: So just sharing some of the thinking that went into the board's decision around remuneration . And then the final question , which comes to mobile average revenue per user .

Vicki Brady: There has been no allowance made in our FY22 targets in terms of any lead way for the outage, which is entirely appropriate. Just sharing some of the thinking that went into the board's decision around remuneration. The final question which comes to mobile average revenue per user. As you said, it was a very big topic of conversation on the analyst call earlier today. I think what we are seeing, first thing I would say is connectivity has never been more important for our customers and for Australians. That is clear, and we see that whenever there is an interruption to service. Just how critical it is really today in underpinning the digital ecosystem of the country and the way we work and operate, way we access education or health or critical services. It is a fundamental underpinning to that.

Speaker #3: And then the final question, which comes to mobile average revenue per user. And as you said, it was a very big topic of conversation on the analyst call earlier today.

Vicki Brady: There has been no allowance made in our FY2027 targets in terms of any lead way for the outage, which is entirely appropriate. Just sharing some of the thinking that went into the board's decision around remuneration. The final question which comes to mobile average revenue per user. As you said, it was a very big topic of conversation on the analyst call earlier today. I think what we are seeing, first thing I would say is connectivity has never been more important for our customers and for Australians. That is clear, and we see that whenever there is an interruption to service. Just how critical it is really today in underpinning the digital ecosystem of the country and the way we work and operate, way we access education or health or critical services. It is a fundamental underpinning to that.

Speaker #2: We want to make sure that experience for our mobile users we maintain that. And so we are selective and if you're going store or online, you will see that when you do that check.

Speaker #1: And as you said , it was a very big topic of conversation on the analyst call earlier today . I think what we're seeing First thing I'd say is connectivity has never been more important for our customers and for Australians .

Speaker #3: I think what we're seeing first thing I'd say is connectivity has never been more important for our customers and for Australians. That's clear. And we see that whenever there is an interruption to service, just how critical it is really today in underpinning the digital ecosystem of the country.

Speaker #2: But the business is doing well. And pleased with the growth in that business. On the smart modem, will it go to 5G? Again, that's all part of our proposition for our customers.

Speaker #1: That's clear . And and we see that whenever there is an interruption to service , just how critical it is really today in underpinning the digital ecosystem of the country and the way we work and operate , the way we access education or health or critical services , it it is a fundamental underpinning to that .

Speaker #2: I won't preempt Brad and the team on what they're thinking there. And then on boost and terms of eSIMs for MVNOs and smartwatches, it's a really great question.

Speaker #3: And the way we work and operate way we access education or health or critical services, it is a fundamental underpinning to that. As you pointed out, you know, we've seen for a little while now where the growth has been in the market has been at that more value conscious end of the market.

Vicki Brady: That is clear, and we see that whenever there is an interruption to service. Just how critical it is really today in underpinning the digital ecosystem of the country and the way we work and operate, way we access education or health or critical services. It is a fundamental underpinning to that.

Speaker #2: I think it's definitely in the product roadmap. I'm just not sure of the timing. So I'd expect it sometime we will see that. But Alex, thanks for that good list of questions.

Speaker #1: As you pointed out , you know , we've seen for a little while now where the growth has been in the market has been at that more value conscious end of the market .

Vicki Brady: I won't preempt Brad and the team on what they're thinking there. On Boost in terms of eSIMs for MVNOs and smartwatches, it's a really great question. I think it's definitely in the product roadmap. I'm just not sure of the timing. I'd expect at sometime we will see that. Alex, thanks for that. Good list of questions.

Speaker #1: Thanks. Thank you, Alex. And thank you to all the media who joined us today to ask their questions. We really value you investing the time in our half-year results.

Speaker #3: And that's why as Telstra, we do have a range of products and brands and channels to market. And that's why, yes, we've seen strong growth with our MVNO partners.

Speaker #1: And that's why as Telstra , we do have a range of products and brands and channels to market . And that's why , yes , we've seen strong growth with our MVNO partners .

Vicki Brady: As you pointed out, we've seen for a little while now where the growth has been in the market has been at that more value conscious end of the market. That's why as Telstra, we do have a range of products and brands and channels to market. That's why, yes, we've seen strong growth with our MVNO partners. We've also seen very strong growth in our prepaid business. We've always been committed to making sure we provide choice to customers so we can reach different segments of the market with different products and different brands. I think given how important mobile services are to Australians today, we continue to see people making those choices to make sure they've got a service. They want their service to operate at a high quality, and that does take investment.

Speaker #1: With that, that now wraps and closes our half-year results for this year. Thank you all again for joining us. And we'll see you at full years.

Vicki Brady: As you pointed out, we have seen for a little while now where the growth has been in the market has been at that more value conscious end of the market. That is why as Telstra, we do have a range of products and brands and channels to market. That is why, yes, we have seen strong growth with our MVNO partners. We have also seen very strong growth in our prepaid business. We have always been committed to making sure we provide choice to customers so we can reach different segments of the market with different products and different brands. I think given how important mobile services are to Australians today, we continue to see people making those choices to make sure they have got a service. They want their service to operate at a high quality, and that does take investment.

Speaker #3: We've also seen very strong growth in our prepaid business. And we've always been committed to making sure we provide choice to customers. So we can reach different segments of the market with different products and different brands.

Speaker #1: We've also seen very strong growth in our prepaid business . And we've always been committed to making sure we provide choice to customers so we can reach different segments of the market with different products and different brands .

Steve Carey: Thanks. Thank you, Alex. Thank you to all the media who joined us today to ask their questions. We really value you investing the time in our H1 results. With that now wraps and closes our H1 results for this year. Thank you all again for joining us, and we'll see you at full years.

Speaker #3: And I think given how important mobile services are to Australians today, we continue to see people making those choices. To make sure they've got a service, they want their service to operate at a high quality, and that does take investment.

Speaker #1: And I think given how important mobile services are to Australians today , we continue to see people making those choices to make sure they've got a service .

Vicki Brady: We have always been committed to making sure we provide choice to customers so we can reach different segments of the market with different products and different brands. I think given how important mobile services are to Australians today, we continue to see people making those choices to make sure they have got a service. They want their service to operate at a high quality, and that does take investment.

Speaker #1: They want their service to operate at a high quality , and that does take investment . It does take cost to be able to deliver on that .

Speaker #3: It does take cost to be able to deliver on that. And I feel our mobile business shows great resilience and we again appreciate the understanding and support of all of our customers.

Speaker #1: And I feel our mobile business shows great resilience , and we , again , appreciate the understanding and support of all of our customers .

Speaker #2: Thank you.

Speaker #1: Thanks, Vicki. Thanks, David. Our next question has come from Sam Buckingham-Jones from the AFR. Please go ahead, Sam.

Vicki Brady: It does take cost to be able to deliver on that. I feel our mobile business shows great resilience, and we again appreciate the understanding and support of all of our customers.

Speaker #2: Thank you .

Speaker #3: Thanks , Vicky . Thanks , David . Our next questions come from Sam Buckingham Jones from the AFR . Please go ahead . Sam .

Vicki Brady: It does take cost to be able to deliver on that. I feel our mobile business shows great resilience, and we again appreciate the understanding and support of all of our customers.

Speaker #2: Thanks, Dave. Thanks, Michael. And thanks, Vicki. I've got a couple of questions as well. The first one is your spending quite a lot of money on AI.

Speaker #2: Thanks , Steve . Thanks , Michael . And thanks , Vicky . I've got a couple of questions as well . The first one is you're spending quite a lot of money on AI .

Nathan Burley: Thank you.

David Swan: Thank you.

Steve Carey: Thanks, Vicki. Thanks, David. Our next questions come from Sam Buckingham-Jones from The Australian Financial Review. Please go ahead, Sam.

Speaker #2: The Accenture deal alone is a big one. And the annual report noted that Telstra wasn't in the top quartile of companies on AI adoption and maturity.

David Swan: Thank you.

Steve Carey: Thanks, Vicki. Thanks, David. Our next questions come from Sam Buckingham-Jones from The Australian Financial Review. Please go ahead, Sam.

Speaker #2: The Accenture deal alone is is a big one . And the annual report noted that Telstra wasn't in the top quartile of companies on AI adoption .

Sam Buckingham-Jones: Thanks, Steve. Thanks, Michael, and thanks, Vicki. I have a couple of questions as well. The first one is, you are spending quite a lot of money on AI. The Accenture deal alone is a big one. The annual report noted that Telstra was not in the top quartile of companies on AI adoption and maturity. I can see that the board has added AI impact as a new incentive target for you to achieve. Does this suggest the board is not satisfied with the return on investment from what Telstra has spent on AI so far? Are you happy with the way that joint venture is going? That is my first question. The second one is probably a slight overlap on what David asked before. Do you mind elaborating a little bit more?

Sam Buckingham-Jones: Thanks, Dave. Thanks, Michael. Thanks, Vicki. I have a couple of questions as well. The first one is, you are spending quite a lot of money on AI. The Accenture deal alone is a big one. The annual report noted that Telstra was not in the top quartile of companies on AI adoption and maturity. I can see that the board has added AI impact as a new incentive target for you to achieve. Does this suggest the board is not satisfied with the return on investment from what Telstra has spent on AI so far? Are you happy with the way that joint venture is going? That is my first question. The second one is probably a slight overlap on what David asked before. Do you mind elaborating a little bit more?

Speaker #2: And I can see that the board has added AI impact as a new incentive target for you to achieve. Does this suggest the board is not satisfied with the return on investment from what Telstra has spent on AI so far?

Speaker #2: And maturity . And I can see that the board has added AI impact as a new incentive target for for you to achieve .

Speaker #2: Does this suggest the board is not satisfied with the return on investment from what Telstra has spent on AI so far , and are you happy with the way that joint venture is going ?

Speaker #2: And are you happy with the way that joint venture is going? That's my first question. And the second one is probably slight overlap on what David asked before.

Speaker #2: That's my first question . And the second one is probably slight overlap on what David's . David asked before , but do you mind elaborating a little bit more ?

Speaker #2: But do you mind elaborating a little bit more? Do you think there will be any further impact on the salary or remuneration, sorry, of the executive team?

Speaker #2: Do you think there will be any further impact on the salary or remuneration ? Sorry of the executive team flowing from the outage .

Speaker #2: Flowing from the outage, I just note that the cumulative amount that the company has paid out to all of its customers is about half of what the executives have lost, which seems like an interesting balance there.

Speaker #2: I just note that the cumulative amount that the company has paid out to all of its customers is about half of what the executives have lost , which seems like an interesting balance .

Sam Buckingham-Jones: Do you think there will be any further impact on the salary or remuneration, sorry, of the executive team flowing from the outage? I just note that the cumulative amount that the company has paid out to all of its customers is about half of what the executives have lost, which seems like an interesting balance there.

Speaker #3: Thanks, Sam. Let me take the first question. So just in terms of AI, it's a we see it as absolutely fundamental and enabler of our business.

Speaker #2: There .

Speaker #1: Thanks , Sam . Let me take the first question . So just in terms of AI , it is it's a we see it as absolutely fundamental and enabler of our business .

Speaker #3: So firstly, how we adopt AI and use it inside the company to deliver better outcomes for customers, to set our teams up to be able to work and develop their skills in AI.

Speaker #1: So firstly , how we adopt AI and use it inside the company to deliver better outcomes for customers to set our teams up , to be able to work and develop their skills in AI alongside , obviously , Telstra plays another role in AI and that is the infrastructure , particularly our digital infrastructure , to help support the country , leverage the benefits of it .

Vicki Brady: Thanks, Sam. Let me take the first question. Just in terms of AI, we see it as absolutely fundamental, an enabler of our business. Firstly, how we adopt AI and use it inside the company to deliver better outcomes for customers, to set our teams up to be able to work and develop their skills in AI. Alongside, obviously, Telstra plays another role in AI, and that is the infrastructure, particularly our digital infrastructure, to help support the country, leverage the benefits of it. Frankly, through our networks, including our mobile networks, a key way that people across the country will access AI in their business, at home, in their education will be over our networks, including our mobile network as one of the key ways to do that. AI is critically important. As you mentioned, we entered a joint venture with Accenture.

Vicki Brady: Thanks, Sam. Let me take the first question. Just in terms of AI, we see it as absolutely fundamental, an enabler of our business. Firstly, how we adopt AI and use it inside the company to deliver better outcomes for customers, to set our teams up to be able to work and develop their skills in AI. Alongside, obviously, Telstra plays another role in AI, and that is the infrastructure, particularly our digital infrastructure, to help support the country, leverage the benefits of it. Frankly, through our networks, including our mobile networks, a key way that people across the country will access AI in their business, at home, in their education, will be over our networks, including our mobile network as one of the key ways to do that. AI is critically important. As you mentioned, we entered a joint venture with Accenture.

Speaker #3: Alongside, obviously, Telstra plays another role in AI, and that is the infrastructure, particularly our digital infrastructure, to help support the country, leverage the benefits of it.

Speaker #3: And frankly, through our networks, including our mobile networks, a key way that people across the country will access AI in their business at home, in their education will be over our networks, including our mobile network as one of the key ways to do that.

Speaker #1: And frankly , through our networks , including our mobile networks , are a key way that people across the country will access AI in their business at home , in their education , will be over our networks , including our mobile network .

Speaker #3: So AI is critically important. As you mentioned, we entered a joint venture with Accenture. That was all about taking our data and AI capability.

Speaker #1: As one of the key ways to do that . So AI is critically important . As you mentioned , we entered a joint venture with Accenture that was all about taking our data and AI capability .

Vicki Brady: Frankly, through our networks, including our mobile networks, a key way that people across the country will access AI in their business, at home, in their education, will be over our networks, including our mobile network as one of the key ways to do that. AI is critically important. As you mentioned, we entered a joint venture with Accenture.

Speaker #3: So the teams that have those skills that flow to work across our business and support the various initiatives in the different functions of the business.

Speaker #1: So the teams that have those skills that flow to work across our business and support the various initiatives in the different functions of the business .

Speaker #3: It was to bring our teams together with Accenture teams, to make sure we were absolutely at the forefront because there is no doubt AI is a global game.

Speaker #1: It was to bring our teams together with Accenture teams to make sure we were absolutely at the forefront , because there is no doubt AI is a global game .

Vicki Brady: That was all about taking our data and AI capability. The teams that have those skills that flow to work across our business and support the various initiatives in the different functions of the business. It was to bring our teams together with Accenture teams to make sure we were absolutely at the forefront, because there is no doubt AI is a global game. We wanted to make sure we are not an AI company, but we want to be at the forefront of applying AI inside our business. As part of that Accenture deal, one of the metrics we put in was we wanted to get to the top quartile in terms of AI capability as an organization. That is a global benchmark.

Speaker #3: We wanted to make sure we're not an AI company but we want to be at the forefront of applying AI inside our business as part of that Accenture deal.

Speaker #1: We wanted to make sure we're not an AI company , but we want to be at the forefront of applying AI inside our business as part of that Accenture deal , one of the metrics we put in was we wanted to get to the top quartile in terms of AI capability as an organization that is a global benchmark .

Speaker #3: One of the metrics we put in was we wanted to get to the top quartile in terms of AI capability as an organization. That is a global benchmark.

Speaker #3: We're sitting the second quartile today. And that's part of the joint venture goal and outcome it needs to deliver is to get us to that top quartile.

Speaker #1: We sit in the second quartile today , and that's part of the joint venture goal and outcome . It needs to deliver is to get us to that top quartile in terms of how we're tracking .

Speaker #3: Terms of how we're tracking, I'm actually really pleased with where we're at right now. We're a year into our connected future 30 strategy. So we've still got four years to go.

Speaker #1: I'm actually really pleased with where we're at right now . We're a year into our connected future , 30 strategy . So we've still got four years to go .

Vicki Brady: We sit in the second quartile today, and that is part of the joint venture goal and outcome it needs to deliver, is to get us to that top quartile. In terms of how we are tracking, I am actually really pleased with where we are at right now. We are a year into our Connected Future 30 strategy, so we have still got 4 years to go. We are in a better place today in terms of our AI capability than we would have been, I believe, if we had not done the Accenture joint venture. It is absolutely delivering for us, particularly foundational capability inside our business, like our data and AI control plane, which gives us full visibility of AI use cases. It means we can monitor cost, performance. We can monitor the responsible use and safety of AI.

Vicki Brady: We sit in the second quartile today, and that is part of the joint venture goal and outcome it needs to deliver, is to get us to that top quartile. In terms of how we are tracking, I am actually really pleased with where we are at right now. We are a year into our Connected Future 30 strategy, so we have still got four years to go. We are in a better place today in terms of our AI capability than we would have been, I believe, if we had not done the Accenture joint venture. It is absolutely delivering for us, particularly foundational capability inside our business, like our data and AI control plane, which gives us full visibility of AI use cases. It means we can monitor cost, performance. We can monitor the responsible use and safety of AI.

Speaker #3: We're in a better place today in terms of our AI capability than we would have been I believe if we had not done the Accenture joint venture.

Speaker #1: We're in a better place today in terms of our AI capability than we would have been , I believe , if we had not done the Accenture joint venture .

Speaker #3: It's absolutely delivering for us, particularly foundational capability inside our business. Like our data and AI control plane, which gives us full visibility of AI use cases, it means we can monitor cost, performance.

Speaker #1: It's absolutely delivering for us , particularly foundational capability inside our business , like our data and AI control plane , which gives us full visibility of AI use cases .

Speaker #1: It means we can monitor cost performance . We can monitor the responsible use and safety of AI . And in fact , we're actually seeing that we're able to drive our usage of AI up not growing costs .

Speaker #3: We can monitor the responsible use and safety of AI. And in fact, we're actually seeing that we're able to drive our usage of AI up whilst not growing costs.

Speaker #3: And so that's a real credit to our teams who've worked over years to make sure we've got the architecture and the flexibility to be able to leverage AI and scale it with our seeing the costs outweigh the benefits.

Speaker #1: And so that's a real credit to our teams who've worked over years to make sure we've got the architecture and the flexibility to be able to leverage AI and scale it without seeing the costs outweigh the benefits .

Vicki Brady: In fact, we are actually seeing that we are able to drive our usage of AI up whilst not growing costs. That is a real credit to our teams who have worked over years to make sure we have got the architecture and the flexibility to be able to leverage AI and scale it without seeing the costs outweigh the benefits. So net, we are absolutely seeing benefits from AI. In our scorecard for FY27, as you call out, we have put in some new AI metrics, and that is all about making sure we have got the focus around those most transformative pieces that we think during FY27 are going to be critical to deliver better outcomes to our customers and the business overall. Just to your second question on remuneration.

Vicki Brady: In fact, we are actually seeing that we are able to drive our usage of AI up whilst not growing costs. That is a real credit to our teams who have worked over years to make sure we have got the architecture and the flexibility to be able to leverage AI and scale it without seeing the costs outweigh the benefits. Net, we are absolutely seeing benefits from AI. In our scorecard for FY27, as you call out, we have put in some new AI metrics, and that is all about making sure we have got the focus around those most transformative pieces that we think during FY27 are going to be critical to deliver better outcomes to our customers and the business overall. Just to your second question on remuneration.

Speaker #3: So net, we're absolutely seeing benefits from AI and in our scorecard for FY27, as you call out, we've put in some new AI metrics and that's all about making sure we've got the focus around those most transformative pieces that we think during FY27 are going to be critical to deliver better outcomes to our customers and the business overall.

Speaker #1: So net , we're absolutely seeing benefits from AI . And in our scorecard for FY 27 , as you call out , we've put in some new AI metrics .

Speaker #1: And that's all about making sure we've got the focus around those most transformative pieces that we think during FY 27 are going to be critical to deliver better outcomes to our customers .

Speaker #1: And the business overall . Just to your second question on remuneration , as I mentioned a little earlier , the board formed a view and held us to an account as a senior executive team by making an adjustment to FY 26 remuneration .

Speaker #3: Just to your second question on remuneration, as I mentioned a little earlier, the board formed a view and held us to an account as a senior executive team by making an adjustment to FY26 remuneration.

Speaker #3: The external expert investigation is still underway. When those findings are complete, of course, the board will consider those findings any further accountability needs to be demonstrated that is something they will consider in light of our FY27 remuneration outcomes.

Speaker #1: The external expert investigation is still underway . When those findings are complete . Of course , the board will consider those findings and any further accountability needs to be demonstrated .

Vicki Brady: As I mentioned a little earlier, the board formed a view, and held us to account as a senior executive team by making an adjustment to FY26 remuneration. The external expert investigation is still underway. When those findings are complete, of course, the board will consider those findings. Any further accountability needs to be demonstrated. That is something they will consider in light of our FY27 remuneration outcomes. As I said, our FY27 scorecard does not give any lead way because of the outage. It is set based on the plan we put to the board in June of this year. You mentioned where we are at with customers, and where we are at. We have had a little over 30,000 customers reach out and contact us. We have to date processed just under AUD 1 million of credits.

Vicki Brady: As I mentioned a little earlier, the board formed a view, and held us to account as a senior executive team by making an adjustment to FY26 remuneration. The external expert investigation is still underway. When those findings are complete, of course, the board will consider those findings. Any further accountability needs to be demonstrated. That is something they will consider in light of our FY27 remuneration outcomes. As I said, our FY27 scorecard does not give any leeway because of the outage. It is set based on the plan we put to the board in June of this year. You mentioned where we are at with customers, and where we are at. We have had a little over 30,000 customers reach out and contact us. We have, to date, processed just under AUD 1 million of credits.

Speaker #1: That is something they will consider in light of our FY 27 remuneration outcomes . And as I said , our FY 27 scorecard does not give any leeway because of the outage .

Speaker #3: And as I said, our FY27 scorecard does not give any lead way because of the outage. It is set based on the plan we put to the board in June of this year.

Speaker #1: It is set based on the plan we put to the board in June of this year . You mentioned where we're at with customers and and where we are at .

Speaker #3: You mentioned where we're at with customers. And where we are at, we've had a little over 30,000 customers reach out and contact us. We have to date processed just under a million dollars of credits.

Speaker #1: We've had a little over 3000 customers reach out and contact us . We have to date processed just under $1 million of credits .

Speaker #3: And I would again encourage customers, anyone who believes they were impacted and hasn't been in contact with us, they should reach out. Our processes are working smoothly and we are getting through that very quickly.

Speaker #1: And I would again , encourage customers , anyone who believes they were impacted and hasn't been in contact with us , they should reach out our processes are working smoothly and we are getting through that very quickly .

Speaker #3: So again, I want to thank our customers for their understanding. And patience through the outage. And as I said, yeah, we're sitting at the moment having process credits of around just under a million dollars.

Speaker #1: So again , I want to thank our customers for their understanding and patience through the outage . And as I said , yeah , we're sitting at the moment having processed credits of around just under $1 million .

Vicki Brady: I would again encourage customers, anyone who believes they were impacted and has not been in contact with us, they should reach out. Our processes are working smoothly, and we are getting through that very quickly. So again, I want to thank our customers for their understanding and patience through the outage. As I said, we are sitting at the moment having processed credits of around just under AUD 1 million.

Vicki Brady: I would again encourage customers, anyone who believes they were impacted and has not been in contact with us, they should reach out. Our processes are working smoothly, and we are getting through that very quickly. Again, I want to thank our customers for their understanding and patience through the outage. As I said, we are sitting at the moment having processed credits of around just under AUD 1 million.

Speaker #2: Thanks, Vicki.

Speaker #1: Thank you, Sam. Our next questions come from David Taylor from ABC. Please go ahead, David.

Speaker #2: Thanks , Vicki .

Speaker #3: Thank you . Sam . Our next questions come from David Taylor from ABC . Please go ahead . David .

Speaker #2: Oh, good day, guys. Thanks for that, Steve. Vicki, just a question. We've had contacts from a current Telstra employee that makes the point that Telstra has a sort of inverted commas secret strategy.

Speaker #2: Oh , g'day guys . Thanks for that . Steve , just a question . We've had contact from a current Telstra employee that makes the point that Telstra has a sort of inverted commas secret strategy of when someone leaves the organisation , whether they retire or natural attrition going somewhere else , you replace their job with a job in India and that this is part of Telstra's strategy to cut costs at your head office and basically replace a lot of the jobs that are done in your head office , whether they be through people in culture or HR or finance or marketing , and replace those jobs with jobs in India to the extent that a lot of the work from the head office could be done in India , that employee says that .

Nathan Burley: Thanks, Vicki.

Sam Buckingham-Jones: Thanks, Vicki.

Steve Carey: Thank you, Sam. Our next questions come from David Taylor from ABC. Please go ahead, David.

Sam Buckingham-Jones: Thanks, Vicki.

Steve Carey: Thank you, Sam. Our next questions come from David Taylor from ABC. Please go ahead, David.

David Taylor: Oh, good day, guys. Thanks for that, Steve. Vicki, just a question. We have had contacts from a current Telstra employee that makes the point that Telstra has a, sort of inverted commas, a secret strategy of when someone leaves the organization, whether they retire or an electrician going somewhere else, you replace their job with a job in India, and that this is part of Telstra's strategy to cut costs at your head office. Basically replace a lot of the jobs that are done in your head office, whether they be through people in culture or HR or finance or marketing, and replace those jobs with jobs in India to the extent that a lot of the work in the head office could be done in India. That employee says that is correct. Can you confirm that?

David Taylor: Oh, good day, guys. Thanks for that, Steve. Vicki, just a question. We have had contacts from a current Telstra employee that makes the point that Telstra has a, sort of inverted commas, "secret strategy" of when someone leaves the organization, whether they retire or an actual electrician going somewhere else, you replace their job with a job in India, and that this is part of Telstra's strategy to cut costs at your head office. Basically replace a lot of the jobs that are done in your head office, whether they be through people in culture or HR or finance or marketing, and replace those jobs with jobs in India, to the extent that a lot of the work from the head office could be done in India. That employee says that is correct. Can you confirm that?

Speaker #2: When someone leaves the organization, whether they retire or metro electrician going somewhere else, you replace their job with a job in India. And that this is part of Telstra's strategy to cut costs at your head office and basically replace a lot of the jobs that are done in your head office, whether they be through people in culture or HR or finance or marketing.

Speaker #2: And replace those jobs with jobs in India. To the extent that a lot of the work from the head office could be done in India.

Speaker #2: That employee says that that's correct. Can you confirm that?

Speaker #2: That's correct . Can you confirm that ?

Speaker #3: So David, I'm not aware of that particular allegation by an employee. But let me just talk about how we approach our workforce. So firstly, we have a large workforce here in Australia.

Speaker #1: So , David , I'm not aware of that particular allegation by an employee , but let me just talk about how we approach our workforce .

Speaker #1: So firstly , we have a large workforce here in Australia . We have workforce working in around 20 countries around the world . That does include .

Speaker #3: We have workforce working in around 20 countries, around the world. That does include so we actually have an innovation center in India. So our own teams employed in India.

Vicki Brady: David, I am not aware of that particular allegation by an employee. Let me just talk about how we approach our workforce. Firstly, we have a large workforce here in Australia. We have workforce working in around 20 countries around the world. We actually have an innovation center in India, so our own teams employed in India. We also have teams in the Philippines. As a Telstra workforce, we do have workforce outside the country, including you take our Digicel business operating across the Pacific and our international business, which is headquartered out of Singapore. We absolutely have workforce out of Australia. In terms of are we deliberately, as someone leaves the organization, then replacing them in India with our team there or through a partner? No.

Vicki Brady: David, I am not aware of that particular allegation by an employee. Let me just talk about how we approach our workforce. Firstly, we have a large workforce here in Australia. We have workforce working in around 20 countries around the world. We actually have an innovation center in India, so our own teams employed in India. We also have teams in the Philippines. We have, as a Telstra workforce, we do have workforce outside the country, including you take our Digicel business operating across the Pacific and our international business, which is headquartered out of Singapore. We absolutely have workforce out of Australia. In terms of are we deliberately, as someone leaves the organization, then replacing them in India with our team there or through a partner? No.

Speaker #1: So we actually have an innovation centre in India . So our own teams employed in India . We also have teams in the Philippines .

Speaker #3: We also have teams in the Philippines. So we have as a Telstra workforce, we do have workforce outside the country, including you take our Digicell business operating across the Pacific and our international business, which is headquartered out of Singapore.

Speaker #1: So we have as a Telstra workforce , we do have workforce outside the country , including you take our digital business operating across the Pacific and our international business , which is headquartered out of Singapore .

Speaker #3: So we absolutely have workforce out of Australia. In terms of are we deliberately as someone leaves the organization, then replacing them in India with our team there or through a partner, no.

Speaker #1: So we absolutely have workforce out of Australia in terms of are we deliberately , as someone leaves the organisation , then replacing them in India with our team there or through a partner ?

Speaker #3: We make very deliberate decisions on our workforce. And we look at what are the capabilities needed, where can we best access those capabilities. And that's how we make those decisions.

Speaker #1: No , we make very deliberate decisions on our workforce and we look at what are the capabilities needed , where can we best access those capabilities ?

Speaker #3: Any decision we make on our workforce, where it has impact on people, we don't make those decisions lightly. They are very considered decisions about what we'll put us in the best position to be able to deliver for our customers.

Speaker #1: And that's how we make those decisions . Any decision we make on our workforce , where it has impact on people , we don't make those decisions lightly .

Vicki Brady: We make very deliberate decisions on our workforce, and we look at what are the capabilities needed, where can we best access those capabilities? That's how we make those decisions. Any decision we make on our workforce, where it has impact on people, we don't make those decisions lightly. They are very considered decisions about what will put us in the best position to be able to deliver for our customers. We're also investing heavily in our teams, particularly in capabilities around data and AI, because we think that's critical. We want our teams to be really skilled and be able to adapt and adjust as the world changes with AI. So, we are investing heavily in that also.

Vicki Brady: We make very deliberate decisions on our workforce, and we look at what are the capabilities needed, where can we best access those capabilities? That is how we make those decisions. Any decision we make on our workforce, where it has impact on people, we do not make those decisions lightly. They are very considered decisions about what will put us in the best position to be able to deliver for our customers. We are also investing heavily in our teams, particularly in capabilities around data and AI, because we think that is critical. We want our teams to be really skilled and be able to adapt and adjust as the world changes with AI. We are investing heavily in that also.

Speaker #1: They are very considered decisions about what will put us in the best position to be able to deliver for our customers . We're also investing heavily in our teams , particularly in capabilities around data and AI , because we think that's critical .

Speaker #3: We're also investing heavily in our teams particularly in capabilities around data and AI. Because we think that's critical. We want our teams to be really skilled.

Speaker #3: And be able to adapt and adjust as you know the world changes with AI. So we are investing heavily in that also.

Speaker #1: We want our teams to be really skilled and be able to adapt and adjust as you know , the world changes with AI , so we are investing heavily in that .

Speaker #2: Are you in any discussions with any consulting firms here in Australia about how you can move more jobs out of your head office towards India?

Speaker #1: Also .

Speaker #2: Are you in any discussions with any consulting firms here in Australia about how you can move more jobs out of your head office towards India ?

Speaker #3: Not that I'm aware of at the moment. David, so.

Speaker #1: Not that I'm aware of at the moment . David .

Speaker #2: You're the CEO.

Speaker #3: I am the CEO, David. And so as I said, we have very considered plans around how we manage and plan our workforce. And we do have teams in India and the Philippines as two big locations for us.

David Taylor: Are you in any discussions with any consulting firms here in Australia about how you can move more jobs out of your head office, towards India?

Speaker #2: So you're the CEO .

David Taylor: Are you in any discussions with any consulting firms here in Australia about how you can move more jobs out of your head office towards India?

Speaker #1: I am the CEO , David . And so , as I said , we have very considered plans around how we manage and plan our workforce .

Vicki Brady: Not that I'm aware of at the moment, David.

Speaker #1: And we do have teams in India and the Philippines as two big locations for us .

Vicki Brady: Not that I am aware of at the moment, David.

David Taylor: You're the CEO.

David Taylor: You are the CEO.

Speaker #2: Thank you for your time, Vicki.

Vicki Brady: I am the CEO, David, and as I said, we have very considered plans around how we manage and plan our workforce. We do have teams in India and the Philippines as two big locations for us.

Speaker #1: Thank you, David. We'll move to Jared Lynch now from the Australian. Please go ahead, Jared.

Vicki Brady: I am the CEO, David. As I said, we have very considered plans around how we manage and plan our workforce. We do have teams in India and the Philippines as two big locations for us.

Speaker #2: Thank you for your time , Vicky

Speaker #3: Thank you . David . We'll move to Jared Lynch now from the Australian . Please go ahead . Jared .

Speaker #4: Thank you, Steve. Hi, Vicki. You connected future 30 strategy as predicated on achieving top quartile AI maturity by 2030 and shifting towards that autonomous programmable network as a product model.

Speaker #4: Thank you Steve . Hi , Vicky . You connected future 30 strategy is predicated on achieving top quartile AI maturity by 2030 and shifting towards that autonomous programmable network as a product model .

David Taylor: Thank you for your time, Vicki.

Steve Carey: Thank you, David. We will move to Jared Lynch now from The Australian. Please go ahead, Jared.

Steve Carey: Thank you, David. We will move to Jared Lynch now from The Australian. Please go ahead, Jarrod.

Speaker #4: The outage, which was triggered by that failure of effectively IT hygiene, the undocumented design changed, a missed software update, I was just wondering, how do you reconcile the high level ambition to leading complex AI driven infrastructure with the reality that your current change management and operational processes appear to execute standard maintenance without risking service failures?

Jared Lynch: Thank you, Steve. Hi, Vicki. Your Connected Future 30 strategy is predicated on achieving top quartile AI maturity by 2030 and shifting towards that autonomous programmable network as a product model. The outage, which was triggered by that failure of effectively IT hygiene, the undocumented design changed and missed software update. I was just wondering, how do you reconcile this high-level ambition to leading complex AI-driven infrastructure with the reality that your current change management and operational processes appear to execute standard maintenance without risking service failures?

Speaker #4: But the outage , which was triggered by that failure of effectively it hygiene , the undocumented design changed amidst software update . I was just wondering , how do you reconcile the high level ambition to leading complex , AI driven infrastructure with the reality that your current change management and operational processes appear to execute standard maintenance without risking service failures

Jared Lynch: Thank you, Steve. Hi, Vicki. Your Connected Future 30 strategy is predicated on achieving top quartile AI maturity by 2030 and shifting towards that autonomous programmable network as a product model. But the outage, which was triggered by that failure of effectively IT hygiene, the undocumented design changed, and missed software update. I was just wondering, how do you reconcile this high-level ambition to leading complex AI-driven infrastructure with the reality that your current change management and operational processes appear to execute standard maintenance without risking service failures?

Speaker #3: So Jared, first thing, just on the outage itself and what triggered it. As we've been very clear and accountable about, it was triggered by planned work on our network.

Speaker #1: So Jared , first thing , just on the outage itself and what triggered it as we've been very clear and accountable about it was triggered by planned work on our network .

Speaker #3: And it was due to some undocumented design change that not being taken into account. And then also if a software update had been done, it is likely if those two things had been done properly, we likely wouldn't have had an outage.

Speaker #1: And it was due to some undocumented design change that not being taken into account . And then also , if a software update had been done , it is likely if those two things had been done properly , we likely wouldn't have had an outage .

Vicki Brady: Jarrod, first thing just on the outage itself and what triggered it. As we have been very clear and accountable about, it was triggered by planned work on our network, and it was due to some undocumented design change that not being taken into account. Also, if a software update had been done, it is likely if those two things had been done properly, we likely would not have had an outage. That is not acceptable. We have taken steps already from our initial investigation, and we have an external expert doing a full investigation right now. Our commitment absolutely is we have to take the lessons from that and implement those so that we come out the other side with an even stronger and more resilient network and processes and controls inside the business. No one wants an outage. We do not want it.

Vicki Brady: Jarrod, first thing, just on the outage itself and what triggered it. As we have been very clear and accountable about, it was triggered by planned work on our network, and it was due to some undocumented design change that not being taken into account. And then also, if a software update had been done, it is likely if those two things had been done properly, we likely would not have had an outage. That is not acceptable. We have taken steps already from our initial investigation, and we have an external expert doing a full investigation right now. And our commitment absolutely is we have to take the lessons from that and implement those so that we come out the other side with an even stronger and more resilient network and processes and controls inside the business. So no one wants an outage. We do not want it.

Speaker #3: That's not acceptable. We have taken steps already from our initial investigation and we have an external expert doing a full investigation right now. And our commitment absolutely is we have to take the lessons from that and implement those so that we come out the other side with an even stronger and more resilient network and processes and controls inside the business.

Speaker #1: That's not acceptable . We have taken steps already from our initial investigation , and we have an external expert doing a full investigation right now and our commitment absolutely is we have to take the lessons from that and implement those so that we come out .

Speaker #1: The other side with an even stronger and more resilient network . And processes and controls inside the business . So no one wants an outage .

Speaker #3: So no one wants an outage. We don't want it. We didn't want to be in that place, but it did happen. And so now our focus is absolutely on supporting our customers, but also taking those lessons and implementing them.

Speaker #1: We don't want it . We didn't want to be in that place . But it did happen . And so now our focus is absolutely on supporting our customers , but also taking those lessons and implementing them in terms of where we're at on our connected future .

Vicki Brady: And our commitment absolutely is we have to take the lessons from that and implement those so that we come out the other side with an even stronger and more resilient network and processes and controls inside the business. So no one wants an outage. We do not want it.

Speaker #3: In terms of where we're at on our connected future 30 strategy and you mentioned inside that, you know how we make sure we are really adopting AI, using that inside our business, using that inside our network.

Speaker #1: 30 strategy . And you mentioned inside that , you know , how we make sure we are really adopting AI using that inside our business , using that inside our network , because at the end of the day , it is our network .

Vicki Brady: We did not want to be in that place, but it did happen, and so now our focus is absolutely on supporting our customers, but also taking those lessons and implementing them. In terms of where we are at on our Connected Future 30 strategy, and you mentioned inside that how we make sure we are really adopting AI, using that inside our business, using that inside our network. Because at the end of the day, it is our network that is our core product to our customers. I am actually very pleased with where we are at the end of the first year of that five-year strategy. You referenced a goal, an ambition we have, and that is to get to the top quartile of companies being able to demonstrate and use AI. It is a global benchmark. That is a target we set with Accenture as we entered our joint venture with them.

Vicki Brady: We didn't want to be in that place, but it did happen. Now our focus is absolutely on supporting our customers, but also taking those lessons and implementing them. In terms of where we're at on our Connected Future 30 strategy, and you mentioned inside that how we make sure we are really adopting AI, using that inside our business, using that inside our network. Because at the end of the day, it is our network that's our core product to our customers. I'm actually very pleased with where we are at the end of the first year of that five-year strategy. You referenced a goal and ambition we have, and that's to get to the top quartile of companies being able to demonstrate and use AI. It is a global benchmark. That's a target we set with Accenture as we entered our joint venture with them.

Speaker #3: Because at the end of the day, it is our network that's our core product to our customers. I'm actually very pleased with where we are at the end of the first year of that five year strategy.

Speaker #1: That's our core product to our customers . I'm actually very pleased with where we are at the end of the first year of that five year strategy .

Speaker #3: You referenced a goal and ambition we have. And that's to get to the top quartile of companies being able to demonstrate and use AI, it is a global benchmark.

Speaker #1: You referenced a goal and ambition . We have , and that's to get to the top quartile of companies being able to demonstrate and use AI .

Vicki Brady: I am actually very pleased with where we are at the end of the first year of that five-year strategy. You referenced a goal, an ambition we have, and that is to get to the top quartile of companies being able to demonstrate and use AI. It is a global benchmark. That is a target we set with Accenture as we entered our joint venture with them.

Vicki Brady: I'm actually very pleased with where we are at the end of the first year of that five-year strategy. You referenced a goal and ambition we have, and that's to get to the top quartile of companies being able to demonstrate and use AI. It is a global benchmark. That's a target we set with Accenture as we entered our joint venture with them.

Speaker #3: That's a target we set with Accenture as we entered our joint venture with them. We're sitting in the second quartile. And our goal is to get to that top quartile.

Speaker #1: It is a global benchmark . That's a target we set with Accenture as we entered our joint venture with them . We're sitting in the second quartile , and our goal is to get to that top quartile .

Speaker #3: And at the end of year, one of our strategy we're making progress. And we will not be complacent because it's a fast moving world.

Speaker #1: And at the end of year , one of our strategy , we're making progress . And we will not be complacent because it's a fast moving world .

Speaker #3: And that remains our ambition.

Speaker #1: And that remains our ambition

Vicki Brady: We are sitting in the second quartile, and our goal is to get to that top quartile and at the end of year one of our strategy. We are making progress, and we will not be complacent because it is a fast-moving world, and that remains our ambition.

Speaker #1: Thank you, Jared. And thank you, Vicki. Our next caller is Jacqueline Robson from the Seven Network. Please go ahead, Jacqueline.

Vicki Brady: We're sitting in the second quartile, and our goal is to get to that top quartile. At the end of year one of our strategy, we're making progress, and we will not be complacent because it's a fast-moving world, and that remains our ambition.

Speaker #3: Thank you . Jared , and thank you , Vicky . Our next caller is Jacqueline Robson from the Seven Network . Please go ahead .

Speaker #5: Hi everyone. Vicki, it's been two years of consecutive and aggressive price hikes for mobile and internet customers. Are there any more to come? And should regular customers be left paying higher prices for services which, as we've seen in July, aren't reliable?

Speaker #3: Jacqueline .

Speaker #5: Hi everyone . Vicki it's been two years of consecutive and aggressive price hikes for mobile and internet customers . Are there any more to come and should regular customers be left paying higher prices for services , which , as we've seen in July , aren't reliable ?

Steve Carey: Thank you, Jared, and thank you, Vicki. Our next caller is Jacquelin Robson from the Seven Network. Please go ahead, Jacqueline.

Steve Carey: Thank you, Jarrod, and thank you, Vicki. Our next caller is Jacquelin Robson from the Seven Network. Please go ahead, Jacqueline.

Speaker #3: So Jacqueline, let me talk a little bit about mobile. It's obviously a really critical service for customers across the country. People are more and more reliant and we know today connectivity really does underpin the digital ecosystem of the country.

Jacquelin Robson: Hi, everyone. Vicki, it has been 2 years of consecutive and aggressive price hikes for mobile and internet customers. Are there any more to come? Should regular customers be left paying higher prices for services, which, as we have seen in July, are not reliable?

Jacquelin Robson: Hi, everyone. Vicki, it's been two years of consecutive and aggressive price hikes for mobile and internet customers. Are there any more to come? Should regular customers be left paying higher prices for services, which, as we've seen in July, aren't reliable?

Speaker #1: So , Jacqueline , let me talk a little bit about mobile . It's obviously a really critical service for customers across the country .

Speaker #1: People are more and more reliant , and we know today connectivity really does underpin the digital ecosystem of the country . We feel it , we know it , whether it's in work , your everyday life , that ability to have connectivity , to be able to access platforms , access health , education , critical services , it's absolutely key .

Speaker #3: We feel it. We know it. Whether it's in work, your everyday life, that ability to have connectivity, to be able to access platforms, access health, education, critical services, it's absolutely key.

Vicki Brady: Jacqueline, let me talk a little bit about mobile. It is obviously a really critical service for customers across the country. People are more and more reliant, and we know today connectivity really does underpin the digital ecosystem of the country. We feel it. We know it. Whether it is in work, your everyday life, that ability to have connectivity, to be able to access platforms, access health, education, critical services, it is absolutely key. Obviously, running a mobile network, it does take significant investment, as does providing the level of service to our customers. As we continue to invest, and you will have seen that we have grown our investment in our network and digital infrastructure over the last 5 years. We continue to invest in that.

Speaker #3: Obviously, running a mobile network, it does take significant investment as does providing the level of service to our customers. And as we continue to invest and you will have seen that we have grown our investment in our network and digital infrastructure over the last five years.

Speaker #1: Obviously , running a mobile network , it does take significant investment , as does providing the level of service to our customers . And as we continue to invest , and you will have seen that we have grown our investment in our network and digital infrastructure over the last five years .

Speaker #3: We continue to invest in that. We do need to make sure we've got pricing set that we can continue to sustain that investment to deliver on those expectations of our customers.

Speaker #1: We continue to invest in that . We do need to make sure we've got pricing set that we can continue to sustain that investment to deliver on those expectations of our customers .

Speaker #3: I would also point out we have a lot of choice for our customers because we fully appreciate and understand that cost of living is a big pressure on a lot of people in the country.

Speaker #1: I would also point out we have a lot of choice for our customers because we fully appreciate and understand that cost of living is a big pressure on a lot of people in the country .

Vicki Brady: We do need to make sure we have got pricing set that we can continue to sustain that investment to deliver on those expectations of our customers. I would also point out we have a lot of choice for our customers because we fully appreciate and understand that cost of living is a big pressure on a lot of people in the country. That is why we do have no lock-in contracts on our postpaid plans. We have prepaid available. We also have different brands and our MVNOs through ALDImobile and Woolworths Group, as examples, to be able to support customers and give them choice alongside financial support for customers who are in particularly challenging circumstances. Mobile remains, I think, a really fundamental service that customers continue to prioritize and want access to high-quality services, and they are the decisions we need to make to be able to deliver for our customers ongoing.

Vicki Brady: We do need to make sure we have got pricing set that we can continue to sustain that investment to deliver on those expectations of our customers. I would also point out we have a lot of choice for our customers because we fully appreciate and understand that cost of living is a big pressure on a lot of people in the country. That is why we do have no lock-in contracts on our postpaid plans. We have prepaid available. We also have different brands and our MVNOs through ALDImobile and Woolworths, as examples, to be able to support customers and give them choice alongside financial support for customers who are in particularly challenging circumstances. Mobile remains, I think, a really fundamental service that customers continue to prioritize and want access to high-quality services, and they are the decisions we need to make to be able to deliver for our customers ongoing.

Speaker #3: That's why we do have no lock-in contracts on our postpaid plans. We have prepaid available. We also have different brands and our MVNOs through Aldi's and Woolworths as examples to be able to support customers and give them choice alongside financial support for customers who are in particularly challenging circumstances.

Speaker #1: That's why we do have no lock in contracts on our postpaid plans . We have prepaid available . We also have different brands and our MVNOs through Aldi's and Woolworths as examples to be able to support customers and give them choice alongside financial support for customers who are in particularly challenging circumstances .

Vicki Brady: We have prepaid available. We also have different brands and our MVNOs through ALDImobile and Woolworths, as examples, to be able to support customers and give them choice alongside financial support for customers who are in particularly challenging circumstances. Mobile remains, I think, a really fundamental service that customers continue to prioritize and want access to high-quality services, and they are the decisions we need to make to be able to deliver for our customers ongoing.

Speaker #3: So mobile remains, I think, a really fundamental service. The customers continue to prioritize and want access to high quality services and they're the decisions we need to make to be able to deliver for our customers ongoing.

Vicki Brady: We also have different brands and our MVNOs through ALDImobile and Woolworths Group, as examples, to be able to support customers and give them choice alongside financial support for customers who are in particularly challenging circumstances. Mobile remains, I think, a really fundamental service that customers continue to prioritize and want access to high-quality services, and they are the decisions we need to make to be able to deliver for our customers ongoing.

Speaker #1: So mobile remains really fundamental service that customers continue to prioritise and want access to high quality services , and they're the decisions we need to make to be able to deliver for our customers .

Speaker #1: Thank you, Vicki. And thank you, Jacqueline. Our next questions come from Brandon How from Capital Brief. Please go ahead, Brandon.

Speaker #1: Ongoing .

Speaker #3: Thank you , Vicky , and thank you , Jacqueline . Our next questions come from Brandon Howell from Capital Brief . Please go ahead .

Speaker #3: Brandon

Speaker #4: Thanks very much. For the time this morning. I just wanted to touch on a couple of topics from the analyst call as well. Sort of in the context of SpaceX earnings last week, we heard that Starlink mobile will is planning to go online from the end of 2027.

Speaker #6: Thanks very much for the time this morning . I just wanted to touch on a couple topics from the analyst call as well , sort of in , you know , in the context of space earnings .

Steve Carey: Thank you, Vicki, and thank you, Jacqueline. Our next questions come from Brandon Howe from Capital Brief. Please go ahead, Brandon.

Speaker #6: Last week , we heard that Starlink mobile will is planning to go online from the end of 2027 . And that sort of planning to take market share from the US big three telcos .

Speaker #4: And that sort of planning to take market share from the US Big Three telcos including in suburban and urban markets. I'm just curious, how is Telstra thinking about the potential threat to its mobile market share from 2028 onwards?

Brandon Howe: Thanks very much for the time this morning. I just wanted to touch on a couple topics from the analyst call as well. In the context of SpaceX earnings last week, we heard that Starlink Mobile is planning to go online from the end of 2027, and they're planning to take market share from the US big three telcos including in suburban and urban markets. I'm just curious, how is Telstra thinking about the potential threat to its mobile market share from 2028 onwards? On a related point, with regards to the ACCC mobile services inquiry, they are considering LEO satellite direct-to-device services. I'm just curious if Telstra has any position on whether or not there's a need for these types of services to be declared as wholesale. Thanks.

Brandon How: Thanks very much for the time this morning. I just wanted to touch on a couple topics from the analyst call as well. In the context of SpaceX earnings last week, we heard that Starlink Mobile is planning to go online from the end of 2027, and they're planning to take market share from the US big three telcos including in suburban and urban markets. I'm just curious, how is Telstra thinking about the potential threat to its mobile market share from 2028 onwards? On a related point, with regards to the ACCC mobile services inquiry, they are considering LEO satellite direct-to-device services. I'm just curious if Telstra has any position on whether or not there's a need for these types of services to be declared as wholesale. Thanks.

Brandon Howe: Thanks very much for the time this morning. I just wanted to touch on a couple topics from the analyst call as well. In the context of SpaceX earnings last week. We heard that Starlink Mobile is planning to go online from the end of 2027, and they are planning to take market share from the US big three telcos including in suburban and urban markets. I am just curious, how is Telstra thinking about the potential threat to its mobile market share from 2028 onwards? On a related point with regards to the ACCC mobile services inquiry, they are considering LEO satellite direct-to-device services. I am just curious if Telstra has any position on whether or not there is a need for these types of services to be declared as wholesale. Thanks.

Brandon How: Thanks very much for the time this morning. I just wanted to touch on a couple topics from the analyst call as well. In the context of SpaceX earnings last week. We heard that Starlink Mobile is planning to go online from the end of 2027, and they are planning to take market share from the US big three telcos including in suburban and urban markets. I am just curious, how is Telstra thinking about the potential threat to its mobile market share from 2028 onwards? On a related point with regards to the ACCC mobile services inquiry, they are considering LEO satellite direct-to-device services. I am just curious if Telstra has any position on whether or not there is a need for these types of services to be declared as wholesale. Thanks.

Speaker #6: You know , including in suburban and urban markets . I'm just curious . How is Telstra , you know , thinking about the potential threat to its mobile market share , you know , from 2028 onwards and sort of on a sort of related point with regards to the A triple C mobile services inquiry , you know , to that they are considering Leosat direct to device services .

Speaker #4: And sort of on a sort of related point with regards to the ACCC mobile services inquiry, you noted that they are considering LeoSat direct-to-device services.

Speaker #4: I'm just curious if Telstra has any position on whether or not there's a need for these types of services to be declared as wholesale.

Speaker #6: I'm just curious if Telstra has any position on whether or not there's a need for these types of services to be declared as wholesale .

Speaker #4: Thanks.

Speaker #3: Brandon, thanks for that. The first thing I'd say just on yes, there's both SpaceX earnings call last week and conversations around Starlink mobile. They were around a US-based service as you point out.

Speaker #6: Thanks , Brendan .

Speaker #1: Thanks for that . The first thing I'd say just on . Yes , the space X earnings call last week and conversations around Starlink mobile .

Speaker #1: They were around a US based service . As you point out . Obviously dynamics and things are different in different markets , including spectrum access and various other parts of that .

Speaker #3: Obviously, dynamics and things are different in different markets including spectrum access and various other parts of that. So that is an announcement relevant to the US at this stage.

Vicki Brady: Brandon, thanks for that. The first thing I'd say, just on the SpaceX earnings call last week and conversations around Starlink Mobile, they were around a US-based service, as you point out. Obviously, dynamics and things are different in different markets, including spectrum access and various other parts of that. That is an announcement relevant to the US at this stage. Look, in terms of how we're approaching satellite, we made the decision to invest. We chose to invest in bringing satellite to mobile services to our customers here in Australia. We brought mobile messaging last June, and recently we've now opened that up to provide access to select applications with a light data service over the Starlink's satellite to mobile service that we've chosen to invest in and bring to our customers.

Vicki Brady: Brandon, thanks for that. The first thing I would say just on, yes, the SpaceX earnings call last week and conversations around Starlink Mobile. They were around a US-based service, as you point out. Obviously, dynamics and things are different in different markets, including spectrum access and various other parts of that. So that is an announcement relevant to the US at this stage. Look, in terms of how we are approaching satellite, we made the decision to invest. We chose to invest in bringing satellite to mobile services to our customers here in Australia. We brought mobile messaging last June, and recently we have now opened that up to provide access to select applications with a light data service over the Starlink's satellite to mobile service that we have chosen to invest in and bring to our customers.

Speaker #1: So that is an announcement relevant to the US at this stage . Look , in terms of how we're approaching satellite , we made the decision to invest .

Speaker #3: Look, in terms of how we're approaching satellite, we made the decision to invest. We chose to invest in bringing satellite to mobile services to our customers here in Australia.

Speaker #1: We chose to invest in bringing satellite to mobile services to our customers here in Australia . We brought mobile messaging last June and recently we've now opened that up to provide access to select applications with a light data service over the Starlink's satellite to mobile service that we've chosen to invest in and bring to our customers .

Speaker #3: We brought mobile messaging, last June and recently we've now opened that up to provide access to select applications with a light data service. Over the Starlink's satellite to mobile service that we've chosen to invest in and bring to our customers.

Speaker #3: So we see it providing an important layer of extra coverage when customers are outside our mobile footprint or an extra layer of resilience for our customers.

Speaker #1: So we see it providing an important layer of extra coverage when customers are outside our mobile footprint or extra layer of resilience for our customers , because we know connectivity is so critical to them .

Speaker #3: Because we know connectivity is so critical to them. You mentioned the ACCC have an announced an inquiry into mobile services. From what's been shared so far and where there's still a discussion paper to come on the detailed scope.

Speaker #1: You mentioned the A , triple C have an announced an inquiry into mobile services from what's been shared so far . And there's still a discussion paper to come on the detailed scope , but it appears to have to be a pretty broad ranging look at the mobile industry .

Vicki Brady: We see it providing an important layer of extra coverage when customers are outside our mobile footprint or an extra layer of resilience for our customers because we know connectivity is so critical to them. You mentioned the ACCC have announced an inquiry into mobile services. From what's been shared so far, and there's still a discussion paper to come on the detailed scope, it appears to be a pretty broad-ranging look at the mobile industry, and it does include emerging technologies like satellite. We think that's incredibly timely to be having that sort of inquiry through a very structured framework. Given the pace of change in technology, given the different dynamics, and how important connectivity is for Australians, we think that is timely.

Vicki Brady: So we see it providing an important layer of extra coverage when customers are outside our mobile footprint or an extra layer of resilience for our customers because we know connectivity is so critical to them. You mentioned the ACCC have announced an inquiry into mobile services. From what has been shared so far, and there is still a discussion paper to come on the detailed scope. But it appears to be a pretty broad-ranging look at the mobile industry, and it does include emerging technologies like satellite. We think that is incredibly timely to be having that sort of inquiry through a very structured framework. Given the pace of change in technology, given the different dynamics, and how important connectivity is for Australians, we think that is timely.

Speaker #3: But it appears to have to be a pretty broad ranging look at the mobile industry. And it does include emerging technologies like satellite. We think that's incredibly timely.

Speaker #1: And it does include emerging technologies like satellite . We think that's incredibly timely to be having that sort of inquiry through a very structured framework , given the pace of change in technology , given the different dynamics and how important connectivity is for Australians , we think that is timely .

Speaker #3: To be having that sort of inquiry through a very structured framework given the pace of change in technology, given the different dynamics and how important connectivity is for Australians we think that is timely.

Speaker #3: I would point out that infrastructure investment and infrastructure-based competition has really been a core part of our mobile market here in the country for a couple of decades.

Speaker #1: I would point out that , you know , infrastructure investment and infrastructure based competition has really been a core part of our mobile market here in the country for a couple of decades .

Speaker #3: And that infrastructure-based competition and that investment and innovation and ability to differentiate is why we've seen Australia be very early with 3G, 4G, 5G and have mobile networks that are amongst the top few in the world.

Speaker #1: And that infrastructure based competition and that investment and innovation and ability to differentiate is why we've seen Australia be very early with 3G , 4G , 5G , and have mobile networks that are amongst the top few in the world .

Vicki Brady: I would point out that infrastructure investment and infrastructure-based competition has really been a core part of our mobile market here in the country for a couple of decades. That infrastructure-based competition and that investment in innovation and ability to differentiate is why we've seen Australia be very early with 3G, 4G, 5G, and have mobile networks that are amongst the top few in the world. In fact, as Telstra, over the last five years, we've invested AUD 9.5 billion in our mobile network, with AUD 3.8 billion of that going into regional services. We think it's timely for the inquiry to happen. Of course, we will engage with the ACCC as they progress through that.

Vicki Brady: I would point out that infrastructure investment and infrastructure-based competition has really been a core part of our mobile market here in the country for a couple of decades. That infrastructure-based competition and that investment and innovation and ability to differentiate is why we have seen Australia be very early with 3G, 4G, 5G and have mobile networks that are amongst the top few in the world. In fact, as Telstra, over the last 5 years, we have invested AUD 9.5 billion in our mobile network, with AUD 3.8 billion of that going into regional services. We think it is timely for the inquiry to happen. Of course, we will engage with the ACCC as they progress through that.

Speaker #3: In fact, as Telstra over the last five years we've invested nine and a half billion dollars in our mobile network with 3.8 billion of that going into regional services.

Speaker #1: In fact , as Telstra over the last five years , we've invested $9.5 billion in our mobile network with 3.8 billion of that going into regional services .

Speaker #3: So we think it's timely. For the inquiry to happen and of course we will engage with the ACCC as they progress through that.

Speaker #1: So we think it's timely for the inquiry to happen . And of course , we will engage with the A triple C as they progress through that .

Speaker #1: Thanks, Brandon. Thank you, Vicki. We'd now like to welcome Josh Taylor from The Guardian to the call. Josh, please go ahead with your questions.

Speaker #3: Thanks , Brendan . Thank you Vicki . We'd now like to welcome Josh Taylor from The Guardian to the call . Josh , please go ahead with your questions .

Speaker #5: Hi. Thanks for your time. Just sort of I guess following up some of the other questions today. So looking at your APU off the back of two price increases and looking at your profit and obviously like the shareholder buyback and everything like that, when the outage happened in July, you faced a lot of criticism from politicians basically saying that you were putting profits ahead of customers.

Speaker #4: Hi . Thanks for your time . Just sort of , I guess , following up some of the other questions today . So looking at your poo off the back of two price increases and looking at your profit , and obviously like the shareholder buyback and everything like that , when the outage happened in July , you faced a lot of criticism from politicians basically saying that you were putting profits ahead of customers .

Steve Carey: Thanks, Brandon. Thank you, Vicki. We would now like to welcome Josh Taylor from The Guardian to the call. Josh, please go ahead with your questions.

Steve Carey: Thanks, Brandon. Thank you, Vicki. We would now like to welcome Josh Taylor from The Guardian to the call. Josh, please go ahead with your question.

Josh Taylor: Hi. Thanks for your time. Just following up some of the other questions today. Looking at your ARPU off the back of two price increases and looking at your profit and obviously there is the shareholder buyback and everything like that. When the outage happened in July, you faced a lot of criticism from politicians basically saying that you were putting profits ahead of customers. Would Telstra customers seeing how much profit you are making off them essentially, basically feel like they are coming last? Do you think it is adding to inflationary pressures? My other question would be as well, just in regards to the spectrum pricing announcement recently. Telstra has been quite critical of that, even though it is actually less than what you were charged last time.

Josh Taylor: Hi. Thanks for your time. Just sort of, I guess following up some of the other questions today. Looking at your ARPU off the back of two price increases and looking at your profit and obviously the shareholder buyback and everything like that. When the outage happened in July, you faced a lot of criticism from politicians basically saying that you are putting profits ahead of customers. Would Telstra customers seeing how much profit you are making off them essentially, basically feel like they are sort of coming last? Do you think it is adding to inflationary pressures? I guess my other question would be as well, just in regards to the spectrum pricing announcement recently. Telstra has been quite critical of that even though it is actually less than what you were charged last time.

Speaker #5: Would Telstra customers seeing this seeing how much profit you're making off them essentially basically feel like they're sort of coming last? And do you think it's adding to inflationary pressures?

Speaker #4: Would Telstra customers seeing this , seeing how much how much profit you're making off them essentially , basically feel like they're sort of coming last ?

Speaker #4: And do you think it's adding to inflationary pressures ? And I guess my other question would be as well , just in regards to the spectrum pricing announcement recently , Telstra's been quite critical of that , even though it's actually less than what you were charged last time .

Speaker #5: And I guess my other question would be as well, just in regards to the spectrum pricing announcement recently, Telstra has been quite critical of that even though it's actually less than what you were charged last time.

Speaker #5: The government will probably be looking at this thinking you're a bit rich crying about this given your profits today. How do you sort of balance your complaints about spectrum pricing versus your profits?

Speaker #4: The government will probably be looking at this thinking you're a bit rich crying about this , given your profits today , how do you sort of balance your complaints about spectrum pricing versus your profits ?

Speaker #3: Josh, so just to address a few of those questions. So first thing I would say, not only have we managed to deliver outcomes and ultimately our business will only be successful if we're delivering for customers.

Speaker #1: Josh so just to address a few of those questions , so first thing I would say , not only have we managed to deliver outcomes and ultimately our business will only be successful if we're delivering for customers .

Josh Taylor: The government will probably be looking at this thinking you are a bit rich crying about this given your profits today. How do you sort of balance your complaints about spectrum pricing versus your profits?

Speaker #3: And so we've seen consistently now after over the last five years we've been delivering improved outcomes for customers and we're seeing that flow through in more customers choosing us and more customers staying with us alongside lift in our net promoter score from our customers.

Speaker #1: And so we've seen consistently now after over the last five years , we've been delivering improved outcomes for customers . And we're seeing that flow through in more customers choosing us .

Vicki Brady: Josh, just to address a few of those questions. First thing I would say, not only have we managed to deliver outcomes, and ultimately our business will only be successful if we are delivering for customers. We have seen consistently now after over the last five years, we have been delivering improved outcomes for customers, and we are seeing that flow through in more customers choosing us. There are more customers staying with us alongside lift in our Net Promoter Score from our customers. In fact, we closed FY26 with that a record high. As we have delivered those better outcomes and we have seen our underlying profits grow, we have also grown our investment in CapEx into our network and our digital infrastructure. In fact, if I look at FY26, we spent AUD 800 million more in that year than we did in FY21 on our networks and digital infrastructure.

Vicki Brady: Josh, just to address a few of those questions. First thing I would say, not only have we managed to deliver outcomes, and ultimately our business will only be successful if we are delivering for customers. We have seen consistently now after over the last five years, we have been delivering improved outcomes for customers, and we are seeing that flow through in more customers choosing us and more customers staying with us alongside lift in our NPS from our customers. In fact, we closed FY26 with that at a record high. As we have delivered those better outcomes and we have seen our underlying profits grow, we have also grown our investment in CapEx into our network and our digital infrastructure. In fact, if I look at FY26, we spent AUD 800 million more in that year than we did in FY21 on our networks and digital infrastructure.

Speaker #1: They're more customers staying with us alongside lift in our Net Promoter score from our customers . In fact , we closed FY 26 with that at a record high as we have delivered those better outcomes .

Speaker #3: In fact, we closed FY26 with that at a record high. As we have delivered those better outcomes, and we have seen our underlying profits grow, we have also grown our investment in CapEx into our network and our digital infrastructure.

Speaker #1: And we have seen our underlying profits grow . We have also grown our investment in CapEx into our network and our digital infrastructure .

Vicki Brady: There are more customers staying with us alongside lift in our Net Promoter Score from our customers. In fact, we closed FY26 with that a record high. As we have delivered those better outcomes and we have seen our underlying profits grow, we have also grown our investment in CapEx into our network and our digital infrastructure. In fact, if I look at FY26, we spent AUD 800 million more in that year than we did in FY21 on our networks and digital infrastructure.

Speaker #3: In fact, if I look at FY26, we spent $800 million more in that year than we did in FY21 on our networks and digital infrastructure.

Speaker #1: In fact , if I look at FY 26 , we spent $800 million more in that year than we did in FY 21 on our networks and digital infrastructure .

Vicki Brady: As we have delivered those better outcomes and we have seen our underlying profits grow, we have also grown our investment in CapEx into our network and our digital infrastructure. In fact, if I look at FY26, we spent AUD 800 million more in that year than we did in FY21 on our networks and digital infrastructure.

Speaker #3: I know people will look at various elements of our results and just to be clear, we did announce a further on-market share buyback. We are doing that alongside increasing CapEx.

Speaker #1: I know people will look at various elements of our results . And just to be clear , we did announce a further on market share buyback .

Speaker #1: We are doing that alongside increasing CapEx . In fact , a on market share buyback goes to how we our mix between equity and debt .

Speaker #3: In fact, an on-market share buyback goes to how we our mix between. Equity and debt. It is not a trade-off between investing in our business.

Vicki Brady: I know people will look at various elements of our results. Just to be clear, we did announce a further on-market share buyback. We are doing that alongside increasing CapEx. In fact, an on-market share buyback goes to our mix between equity and debt. It is not a trade-off between investing in our business. In terms of spectrum pricing, yes, the ACMA formed a view on spectrum pricing. Ourselves, along with the other mobile network operators in the country, all had very strong views on what the fair value of that spectrum is. We believe it was priced higher than the fair value of that spectrum. In terms of valuing spectrum, you don't look backwards, you look forward, and you benchmark to what has happened to various markets around the world more recently. We still hold the view. We saw that at a lower value than was determined.

Vicki Brady: I know people will look at various elements of our results, and just to be clear, we did announce a further on-market share buyback. We are doing that alongside increasing CapEx. In fact, an on-market share buyback goes to our mix between equity and debt. It is not a trade-off between investing in our business. In terms of spectrum pricing, yes, the ACMA formed a view on spectrum pricing. Ourselves, along with the other mobile network operators in the country, all had very strong views on what the fair value of that spectrum is. We believe it was priced higher than the fair value of that spectrum. In terms of valuing spectrum, you do not look backwards, you look forward, and you benchmark to what has happened to various markets around the world more recently. We still hold the view. We saw that at a lower value than was determined.

Speaker #1: It is not a trade off between investing in our business in terms of spectrum pricing . Yes , the ACMA formed a view on spectrum pricing ourselves along with the other mobile network operators in the country .

Speaker #3: In terms of spectrum pricing, yes, the ACMA formed a view on spectrum pricing. Ourselves along with the other mobile network operators in the country all had very strong views on what the fair value of that spectrum is.

Speaker #1: All had very strong views on what the fair value of that spectrum is . We believe it was priced higher than the fair value of that spectrum in terms of valuing spectrum .

Speaker #3: We believe it was priced higher than the fair value of that spectrum. In terms of valuing spectrum, you don't look backwards. You look forward and you benchmark to what has happened to various markets around the world more recently.

Speaker #1: You don't look backwards , you look forward and you benchmark to what has happened to various markets around the world . More recently , we still hold the view .

Speaker #3: We still hold the view we saw that at a lower value than was determined. However, the ACMA, that is their role to determine that price.

Speaker #1: We saw that at a lower value than was determined . However , the ACMA that is their role to determine that price they have determined it and we will proceed through the various spectrum renewals that sit under that over the coming years .

Vicki Brady: We believe it was priced higher than the fair value of that spectrum. In terms of valuing spectrum, you do not look backwards, you look forward, and you benchmark to what has happened to various markets around the world more recently. We still hold the view. We saw that at a lower value than was determined.

Speaker #3: They have determined it and we will proceed through the various spectrum renewals that sit under that over the coming years from 2028 through to about 2032.

Speaker #1: From 2028 through to about 2032 .

Speaker #5: Thank you.

Speaker #1: Thank you, Josh. And thank you, Vicki. Our next caller, we have is Rowan Pierce from CommState. Please go ahead, Rowan.

Speaker #7: Thank you .

Vicki Brady: However, the ACMA, that is their role to determine that price. They have determined it, and we will proceed through the various spectrum renewals that sit under that over the coming years, from 2028 through to about 2032.

Speaker #3: Thank you , Josh , and thank you , Vicky . Our next caller , we have is Rowan Pierce from Comstar . Please go ahead .

Speaker #6: Hi guys. I have an unfashionable question about fiber. You mentioned this kind of strong pipeline for Aura. I'm kind of interested in that context.

Speaker #3: Rowan .

Speaker #8: Hi guys . I have a an unfashionable question without fibre . You mentioned this kind of strong pipeline for aura . I'm kind of interested in that context about some of the kind of demand or interest you're seeing in the routes that you haven't made an investment decision on yet , particularly , I guess , from hyperscalers and whether they've kind of , I guess , a timeline for ruling in or out some of those kind of optional routes .

Josh Taylor: Thank you.

Speaker #6: About some of the kind of demand or interest you're seeing in the routes that you haven't made an investment decision on yet. Particularly, I guess, from hyperscalers.

Steve Carey: Thank you, Josh, and thank you, Vicki. Our next caller we have is Rohan Pearce from Computerworld. Please go ahead, Rohan.

Speaker #6: And whether there's kind of, I guess, a timeline for rolling in or out some of those kind of optional routes.

Rohan Pearce: Hi, guys. I have an unfashionable question about fiber. You mentioned this kind of strong pipeline for Aura. I am kind of interested in that context about some of the kind of demand or interest you are seeing in the routes that you have not made an investment decision on yet, particularly, I guess, from hyperscalers, and whether there is kind of, I guess, a timeline for ruling in or out some of those kind of optional routes.

Rohan Pearce: Hi, guys. I have an unfashionable question about fiber. You mentioned this strong pipeline for Aura. I am interested in that context about some of the demands or interest you are seeing in the routes that you have not made an investment decision on yet, particularly, I guess, from hyperscalers, and whether there is a timeline for ruling in or out some of those optional routes.

Speaker #3: Thanks, Rowan. Yeah. Now, Aura, yeah, it is exciting to see as a reminder, we announced Aura back in February 2022. So it's great now to be more than halfway through it and have six routes live and ready for service.

Speaker #1: Thanks , Rowan . Yeah . Now , aura . Yeah , it is exciting to see . As a reminder , we announced aura back in February 2022 .

Speaker #1: So it's great now to be more than halfway through it and have six routes live and ready for service . We've absolutely particularly the last six months , we've seen a significant lift in the sales pipeline for aura capacity .

Speaker #3: We've absolutely particularly the last six months we've seen a significant lift in the sales pipeline for Aura capacity. As you mentioned, when we announced back in February 2022, there were two additional routes that we did designs on but were not part of the initial build.

Vicki Brady: Thanks, Rohan. Yeah. Aura, yeah, it is exciting to see. As a reminder, we announced Aura back in February 2022. So it is great now to be more than halfway through it and have six routes live and ready for service. We have absolutely, particularly the last six months, we have seen a significant lift in the sales pipeline for Aura capacity. As you mentioned, when we announced back in February 2022, there were two additional routes that we did designs on but were not part of the initial build. One of those was Darwin-Brisbane, and another one was Darwin to Perth along the coastal route through the Pilbara. They were two routes not included in the initial Aura project. Of course, our focus right now is on completing Aura. It is converting those sales pipelines into contracts and getting customers up and running on the network.

Vicki Brady: Thanks, Rohan. Aura, it is exciting to see. As a reminder, we announced Aura back in February 2022, so it is great now to be more than halfway through it and have six routes live and ready for service. We have absolutely, particularly the last six months, seen a significant lift in the sales pipeline for Aura capacity. As you mentioned, when we announced back in February 2022, there were two additional routes that we did designs on but were not part of the initial build. One of those was Darwin-Brisbane, and another one was Darwin to Perth along the coastal route through the Pilbara. They were two routes not included in the initial Aura project. Of course, our focus right now is on completing Aura. It is converting those sales pipelines into contracts and getting customers up and running on the network.

Speaker #1: As you mentioned , when we announced back in February 2022 , there were two additional routes that we did designs on but were not part of the initial build .

Speaker #3: One of those was Darwin Brisbane and another one was Darwin to Perth along the coastal route through the Pilbara. They were two routes not included in the initial Aura project.

Speaker #1: One of those was Darwin , Brisbane , and another one was Darwin to Perth along the coastal route through the Pilbara . They were two routes , not included in the initial aura project .

Speaker #3: Of course, our focus right now is on completing Aura it is converting those sales pipelines into contracts and getting customers up and running on the network.

Speaker #1: Of course , our focus right now is on completing aura . It is converting those sales pipelines into contracts and getting customers up and running on the network .

Speaker #3: But of course, we will continue to assess if there is investment that's value accretive that is going to deliver for customers and their demand is there.

Speaker #1: But of course , we will continue to assess if there is investment that's value accretive . That is going to deliver for customers and their demand is there .

Vicki Brady: They were two routes not included in the initial Aura project. Of course, our focus right now is on completing Aura. It is converting those sales pipelines into contracts and getting customers up and running on the network.

Speaker #3: That's something we will continue to assess. No timeline on ruling that in and out if there is good investments to be made where we've got the capability and the differentiation to be able to do it alongside customer demand, then that's something we'll consider.

Speaker #1: That's something we will continue to assess . No timeline on ruling that in and out . If there is good investments to be made where we've got the capability and the differentiation to be able to do it alongside customer demand , then that's something we'll consider

Vicki Brady: Of course, we will continue to assess if there is investment that is value accretive that is going to deliver for customers and the demand is there, that is something we will continue to assess. No timeline on ruling that in and out. If there are good investments to be made where we have got the capability and the differentiation to be able to do it alongside customer demand, then that is something we will consider.

Vicki Brady: But of course, we will continue to assess if there is investment that is value accretive, that is going to deliver for customers and the demand is there, that is something we will continue to assess. No timeline on ruling that in and out. If there is good investments to be made where we have got the capability and the differentiation to be able to do it alongside customer demand, then that is something we will consider.

Speaker #1: Thank you, Rowan. Appreciate that. Our final question today comes from Amelia Turzon from ABC. Please go ahead, Amelia.

Speaker #3: Thank you Rohan , appreciate that . Our final question today comes from Emilia Terzon from ABC . Please go ahead . Emilia

Speaker #7: Good morning. Thanks for doing this briefing with media. Also just a bit of a follow-up to some questions that have already been asked. Telstra's results show that you're working with one regulator on the outage.

Speaker #9: Good morning . Thanks for doing this briefing with Media . Also , just a bit of a follow up to some questions that have already been asked .

Steve Carey: Thank you, Rohan. Appreciate that. Our final question today comes from Emilia Terzon from ABC. Please go ahead, Emilia.

Steve Carey: Thank you, Rohan. Appreciate that. Our final question today comes from Amelia Thomson-DeVeaux from ABC. Please go ahead, Amelia.

Speaker #9: Telstra's results show that you're working with one regulator on the outage . Can you tell us who that is specifically ? And also , if you're bracing for potential action from the likes of ACMA who've actually just lodged action against Optus over one of its outages

Speaker #7: Can you tell us who that is specifically? And also, if you're bracing for potential action from the likes of ACMA who've actually dislodged action against Optus over one of its outages.

Emilia Terzon: Good morning. Thanks for doing this briefing with media. Also, just a bit of a follow-up to some questions that have already been asked. Telstra's results show that you are working with one regulator on the outage. Can you tell us who that is specifically, and also if you are bracing for potential action from the likes of ACMA, who have actually just lodged action against Optus over one of its outages?

Amelia Thomson-DeVeaux: Good morning. Thanks for doing this briefing with media. Also, just a bit of a follow-up to some questions that have already been asked. Telstra's results show that you are working with one regulator on the outage. Can you tell us who that is specifically, and also if you are bracing for potential action from the likes of ACMA, who have actually dislodged action against Optus over one of its outages?

Speaker #3: Thanks, Amelia. So ACMA is our key regulator and it is ACMA that has commenced an investigation into our outage. It's in the very early stages of course, we are cooperating with that and providing all of the information they require.

Speaker #1: Thanks , Amelia . So ACMA is our key regulator and it is ACMA that has commenced an investigation into our outage It's in the very early stages .

Speaker #1: Of course , we are cooperating with that and providing all of the information they require . It's far too early to speculate around potential outcomes .

Speaker #3: It's far too early to speculate around potential outcomes out of that investigation. So early stages and we are cooperating fully with ACMA.

Vicki Brady: Thanks, Amelia. ACMA is our key regulator, and it is ACMA that has commenced an investigation into our outage. It is in the very early stages. We are cooperating with that and providing all of the information they require. It is far too early to speculate around potential outcomes out of that investigation. Early stages, and we are cooperating fully with ACMA.

Vicki Brady: Thanks, Amelia. ACMA is our key regulator, and it is ACMA that has commenced an investigation into our outage. It is in the very early stages. Of course, we are cooperating with that and providing all of the information they require. It is far too early to speculate around potential outcomes out of that investigation. So early stages, and we are cooperating fully with ACMA.

Speaker #1: Out of that investigation . So early stages and we are cooperating fully with ACMA .

Speaker #1: Thank you, Vicki. And thank you, Amelia. That wraps our media Q&A for today's full year results. Thank you to the media for joining us and also thank you to the analysts that joined us on the call earlier today.

Speaker #3: Thank you , Vicki , and thank you , Amelia , that wraps our media Q&A for today's full year results . Thank you to the media for joining us .

Speaker #3: And also thank you to the analysts that joined us on the call earlier today . We will now wrap up formally our broadcast .

Steve Carey: Thank you, Vicki, and thank you, Amelia. That wraps our media Q&A for today's full year results. Thank you to the media for joining us, and also thank you to the analysts that joined us on the call earlier today. We will now wrap up formally our broadcast. Thank you very much.

Steve Carey: Thank you, Vicki, and thank you, Amelia. That wraps our media Q&A for today's full-year results. Thank you to the media for joining us, and also thank you to the analysts that joined us on the call earlier today. We will now wrap up formally our broadcast. Thank you very much.