Telstra (ASX:TLS) to pay dividend despite 14.4% profit drop

Telstra (ASX:TLS) has reported a 14.4 per cent drop in net profit after tax to $1.8 billion, taking the telco’s total income to a loss of 5.9 per cent to $26.2 billion.

Despite the profit loss, the telco will pay a fully-franked final dividend of 8 cents per share, comprising a final ordinary dividend of 5 cents per share and a final special dividend of 3 cents per share, which will see $1.9 billion returned to Telstra shareholders this year.

Reported EBITDA was $8.9 billion, and underlying EBITDA declined 9.7 per cent to $7.4 billion.

Guidance for FY21 underlying EBITDA assumes an estimated negative impact from Covid-19 in FY21 of approximately $400 million.

Telstra has announced 12,000 indirect role reductions and 7,300 direct workforce role reductions since it launched T22 strategy in June 2018, but job reductions have been put on hold for six months since March this year due to the current climate.

Shares in Telstra (ASX:TLS) are trading 4.13 per cent lower at $3.25.  
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Source: Finance News Network