Telstra today announced it had returned to EBITDA growth in the second half, with the telco giant exceeding its guidance, and maintaining its 14 cent final dividend.

Releasing its full year results, it also posted free cash flow of $5.5 billion, the addition of more than two million mobile customers in Australia and Hong Kong, and an EBITDA decline of $696 million which was slightly better than expectations owing to productivity benefits and revenue growth achieved in the second half.

Chief Executive Officer David Thodey said the company had retained or grown market share in major products over the year, with the benefits already evident in the improved financial performance in the second half.

“We continue to invest in innovative products and services and this differentiation is increasingly being recognised by our customers. This will be even more important as we move towards an NBN environment,” Mr Thodey said.

In the year, total mobile revenue grew by 10.7 per cent to $8,100 million, driven by customer growth and steady average revenues per customer. Fixed line (PSTN) voice revenues declined by 7.9 per cent to $5,370 million, while retail fixed broadband revenues increased by 1.4 per cent to $1,594 million.

IP access revenues grew by 16.2 per cent to $970 million and our Network Applications and Services (NAS) revenue grew 10.7 per cent to $1,144 million as the company benefits from improved capabilities in this area.

Telstra said the initiatives already taken will continue to bear fruit in fiscal 2012. The year will see productivity and other benefits from a continuing simplification program.

“We have always acknowledged the need to translate our 2011 initiatives into tangible financial benefits, so we are pleased with the results in the second half of this year and expect that momentum to continue in 2012,” Mr Thodey said.

The company expects to return to full year earnings growth with low single digit revenue growth and low single digit EBITDA growth on the back of strong second half performance in fiscal 2011. Capex to sales will continue to be around 14 per cent of sales with free cashflow of between $4.5 and $5.0 billion. The NBN is not expected to have a material impact on Telstra’s financial results in 2012.