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Australia’s leading telecommunications company, Telstra, has announced the suspension of its plans to sell a stake in its infrastructure unit, InfraCo Fixed. Telstra InfraCo currently possesses a vast network consisting of fiber optic cables, ducts, poles, data centers, cable landing stations, and satellite ground stations, enabling extensive connectivity in Australia. The decision to retain ownership of InfraCo Fixed is based on its crucial role in accomplishing Telstra’s long-term strategic goals.

The company’s CEO, Vicki Brady, explained that Telstra thoroughly considered alternative options before determining that maintaining the current ownership structure of InfraCo Fixed would generate the most value for shareholders, at least in the medium term. InfraCo Fixed reported a significant increase in annual income, contributing 11 percent to Telstra’s overall income.

Telstra aims to achieve net cost reductions and mid-single digit growth in underlying earnings before interest, taxes, depreciation, and amortization (EBITDA) by the fiscal year 2025. Projections for fiscal 2024 anticipate surpassing the previous year’s EBITDA with a range of A.2 billion to A.4 billion.

Despite the challenges posed by high inflation, Vicki Brady reaffirmed Telstra’s commitment to achieving its targets by fiscal year 2025. She emphasized the company’s dedication to meeting its underlying EBITDA and earnings per share (EPS) growth objectives.

This announcement follows Telstra’s recent decision not to appeal an Australian Competition Tribunal ruling that prevented an asset transfer deal with its competitor, TPG Telecom. Telstra’s mobile business demonstrated solid growth, with a significant increase in income and revenue from postpaid handheld services.

Telstra’s strategic decisions reflect its proactive approach in navigating the dynamic telecommunications landscape while prioritizing value for shareholders. The company’s performance in fiscal 2023 highlights its resilience and strategic focus in the face of industry challenges and opportunities.

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