Telstra Group's ROCE growth is quite impressive, with ROCE growing 135% over the last five years whilst employing roughly the same amount of capital, demonstrating the business is generating higher returns from the same capital base as proof of improvements in efficiencies. The company is pursuing a $700m joint venture with Accenture to enhance digital capabilities.
Cyborg Score Rationale
Telstra Group has an ROCE of 12%, which is much better than the Telecom industry average of 6.0%. The company maintains a stable dividend yield of ~3.89% with 100% franking, though high payout ratio and leverage limit flexibility.
Top Insights
FY2025 revenue was A$23.13 billion (up 0.86%) with earnings of A$2.17 billion (up 33.91%)
Telstra reports earnings on 18 Feb 2026 with market focus on service revenue, fixed broadband churn and InfraCo progress
Key risks include higher spectrum fees, weaker broadband or mobile ARPU, operational setbacks from the Accenture JV and regulatory scrutiny around emergency call reliability
Investors have rewarded shareholders with an 86% return over the last five years
Named Competitors
Optus — Major Australian mobile and broadband provider
TPG Telecom — Third-largest Australian mobile operator; includes Vodafone brand
NBN Co — Government-owned fixed-line broadband infrastructure provider
Recent Developments
(Feb 2026) Telstra reports FY results on 18 Feb with focus on InfraCo monetisation and $700m Accenture JV progress
(Feb 2026) Joint venture with Accenture results in 209 job cuts as AI capabilities rollout accelerates
(Jan 2026) Telstra fined A$18 million by Federal Court for lowering internet speeds without customer consent
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