Telstra's $4.3b profit up 15% on last year

AUSTRALIA'S largest telecommunications company Telstra has posted a full-year profit of $4.3 billion, far exceeding initial expectations.

The result is up 15% compared to last year.

The result saw Telstra raise its dividend for the first time in seven years, increasing the final dividend to 15 cents per share, taking the full-year payout to 29.5 cents per share, an increase of 5.5%.

Telstra also announced a further return to shareholders with an off-market share buyback of up to $1 billion.

The telco gained 937,000 mobile customers during the year which drove up mobile revenue by 5.1%.

Its fixed-line income slid a further 7.5%.

Telstra's NBN income rose 60% to $640 million over the past year as more homes and businesses connected to the fibre optic service.