Telstra boosts profit, flags dividend cut

Telstra boosts profit, flags dividend cut - 17th August 2017

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Telco giant Telstra Corporation has lifted its full-year profit by one per cent in a tough market and has flagged a cut to its dividend from next year to fund spending on battling new competitors.

Telstra's profit from continuing operations was up by 1.1 per cent to $3.9 billion for 2016/17.

The company said it expects to pay a total dividend of 22 cents a share, fully franked, for 2017/18 - down from 31 cents in the year just ended - after reassessing its dividend policy.

The move takes Telstra away from its historical practice of paying almost all profits in dividends, to paying 70 to 90 per cent - a ratio it says is "more in line with global peers and local large companies".