Telstra Group (TLS) – Mobile pricing boost

Telstra Group is the largest telecommunications carrier in Australia. The company was previously government owned from 1901 before being listed on the ASX in November 1997. Telstra is based in Melbourne.‍

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Telstra has flagged it will raise prices on almost all of its post-paid and prepaid mobile phone plans from 5 May, two months ahead of the 1 July start date it used last year, and cease sales of its non-advertised 5 gigabyte (GB) ‘starter plan’ to new customers from the same date. In post-paid, the price for existing customers on the starter plan will increase by $5 a month to $55; the basic plan with 50GB increases $4 a month to $74; the essential plan (180GB) rises by 4$ to $84; while the premium plan (300GB) price stays at $99 a month.

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All its prepaid plans increase in price, although data quotas are also raised. Seven-day expiry plans rise by $2 to between $13–15; 28-day plans increase by $5 to between $44–74; six-month plans rise by $20 to $180–200; and the 12-month plans increase by $45 to between $350-395. Ord Minnett views the scale of the changes as largely in line with consensus estimates and see them as supportive of Telstra’s target of generating operating earnings growth of $300 million per annum.

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Post the increases, we have modestly upgraded our EPS estimates by 0.6%, 0.9% and 1.0% for FY26, FY27 and FY28, respectively. We maintain our target price of $5.50 on Telstra and an Accumulate recommendation.