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Highlights

  • Telstra shares are up 15% year-to-date in 2025, outperforming the ASX 200's 1.7% gain.
  • The company reported a USD 161 million reduction in core fixed costs in its HY25 results.
  • Investments in 5G infrastructure and AI-driven efficiencies continue to shape Telstra’s strategy.

Telstra Group Ltd (ASX: TLS) shares have delivered a 15% gain so far in 2025, outpacing the broader S&P/ASX 200 Index, which is up just 1.7% over the same period. The outperformance comes amid increased investor interest in companies perceived as having more stable earnings during uncertain market conditions.

In April 2025, Telstra shares rose 7.1%, compared to the ASX 200’s 3.6% gain. This movement took place during a period of heightened market volatility. Market commentary points to the ongoing demand for reliable internet and mobile connectivity among households and businesses as a key factor supporting investor sentiment.

Asset manager Blackwattle, which holds Telstra in its portfolio, highlighted the company’s perceived earnings stability and capital management as contributing factors to the share price performance. In a recent monthly update, the firm also pointed to Telstra’s network infrastructure and its continued efforts to manage costs effectively as areas of interest.

According to the update, Telstra’s mobile network continues to offer wide coverage and improved speed. The company has invested over USD 40 billion in capital expenditure and spectrum over the past decade, supporting its goal of leading the national rollout of 5G infrastructure. As of December 2024, 60% of Telstra’s mobile traffic was running on 5G, with coverage extending to 91% of the population.

From a cost perspective, Telstra reported in its half-year FY25 results that it achieved a $161 million (4.8%) reduction in core fixed costs year over year. The company reaffirmed its aim to achieve a total reduction of $350 million in core fixed costs by the end of FY25. These reductions have been driven in part by increased use of automation and artificial intelligence in network operations.

Telstra has also continued its share buyback initiative, which some investors interpret as a sign of confidence in future cash flow generation. The buyback, combined with cost savings and network expansion, has been a key part of the company’s strategic direction in 2025.

In its FY25 half-year outlook, Telstra emphasized the importance of its digital infrastructure to national connectivity, stating that continued investment in technology and operational capabilities remains a priority. The company also acknowledged its role in supporting Australia’s future economic development through scalable and sustainable network services.

Despite Telstra's share price gains, investors remain focused on its approach to infrastructure spending, cost control, and competition, as it navigates AI, automation, and 5G developments in a fast-evolving digital landscape.