MELBOURNE, May 14, 2026, 09:07 (AEST)
- Telstra repurchased 942,721 shares on May 13, spending A$4.98 million, according to a filing.
- So far, the program has drawn on roughly A$1.10 billion, closing in on its A$1.25 billion limit.
- Next up, the focus shifts to whether mobile price hikes will stick, with Optus and Vodafone still rolling out cheaper deals.
On Wednesday, Telstra Group Limited snapped up 942,721 more ordinary shares, moving closer to the A$1.25 billion cap for its ongoing on-market buyback, according to a market filing. The on-market approach allows Telstra to repurchase its own listed stock directly through regular exchange trading.
The news hits just as Telstra’s capital return stands out as a rare prop for the shares, with investors still eyeing proof that those higher mobile prices will hold up. According to the latest daily notice, Telstra shelled out or was on the hook for A$4.98 million in Wednesday’s buybacks, paying between A$5.24 and A$5.30 per share.
Reuters calculations based on the filing show Telstra has snapped up 218.24 million shares so far, spending about A$1.104 billion. That leaves around A$145.7 million before hitting the cap. The company says the buyback could continue through June 30, but it reserves the right to pause or call it off anytime.
Telstra finished Wednesday at A$5.30, gaining 0.76%. Shares bounced from A$5.235 to A$5.30 throughout the session. MarketScreener data show the stock is up 8.83% so far in 2026.
Telstra ramped up its buyback in February after posting a strong first half. First-half profit climbed 9.4% to A$1.12 billion, Reuters noted, coming in above Visible Alpha’s forecasts. The company also bumped the buyback by another A$250 million, bringing the total to A$1.25 billion. “The on-market share buyback is expected to support earnings and dividend per share growth,” Chief Executive Vicki Brady said at the time. Reuters
Telstra reported a 5.5% bump in underlying EBITDAaL, hitting A$4.2 billion for the half-year. Mobile product income landed at A$5.77 billion, up 3.6%. Mobile accounted for 44% of total product income — still the company’s main driver.
Pricing’s played a part, too. Telstra bumped most postpaid mobile plans up by A$4 a month starting May 5, and prepaid plans generally climbed around A$5. The Basic plan is now A$74, up from A$70, and Essential shifted to A$84 from A$80.
That means Telstra is pulling in more revenue from each customer, but it’s facing a challenge. WhistleOut’s latest data, updated May 14, put Vodafone’s small SIM-only plan at A$26.50 per month with a six-month promo, and Optus’ promotional plan at A$40. Telstra’s A$74 Basic Upfront SIM plan stands out as the priciest option.
Competition isn’t the only worry here. Spectrum fees—what telcos shell out for access to crucial radio frequencies—still cast a shadow. The ACMA pegs the market value of these licence renewals at A$7.34 billion, saying locking them in through 2044 would keep rivals in the game and prevent disruptions. Telstra, for its part, puts its own bill at just A$1.2 billion, well below the A$2.8 billion figure cited.
The buyback keeps trimming the share count, but next up, investors will be watching the fundamentals—mobile margins, churn, capex. Telstra’s full-year numbers land Aug. 13.
