Portfolio Update: Purchase of Telstra Group Limited (ASX: TLS)

Portfolio Update:
Purchase of Telstra Group Limited (ASX: TLS)

9th July 2025

Across the Australian Equity component of investor portfolios (Growth Tilt), we have bought Telstra Group Limited (ASX: TLS).

Telstra is Australia’s leading telecommunications provider, offering mobile, fixed broadband, enterprise solutions, international connectivity, and digital infrastructure. Its mobile network reaches approximately 99.7% of the Australian population, and it owns key digital infrastructure assets including:

A 51% stake in Amplitel, Australia’s largest mobile tower network
InfraCo Fixed, a portfolio of physical infrastructure assets supporting the national fixed-line network

Investment Rationale:

Dominant position in mobile telecommunications
Growth opportunities requiring modest capital investment
Stable and predictable earnings base

Key Drivers of Value:

Intercity Fibre Network – A high-speed dark fibre network connecting all capital cities, critical for data centre infrastructure. The new fibre network begins ramping up in FY26, with an expected base EBITDA of $200 million, and potential upside from higher utilisation and pricing.
5G Internet at Home – Increasingly marketed as a primary consumer broadband option over NBN. It delivers faster, more reliable service at a lower cost to customers. Changing customers from NBN to 5G internet is estimated to save Telstra ~$500 per customer, per annum, benefiting longer term margins.

Portfolio Changes:

The position in Telstra has been funded by reducing weightings in other large-cap holdings, including BHP, CSL, WES, MQG, and ANZ.

As always, thank you for your ongoing support, it is very much appreciated. If you have any questions or would like more information, please contact your adviser.

Warnings and disclosures

This material has been prepared for general information purposes only and not as specific advice to any particular person. Any advice contained in this material is General Advice and does not take into account any person’s individual investment objectives, financial situation or needs. Before making an investment decision based on this advice you should consider whether it is appropriate to your particular circumstances, alternatively seek professional advice. Where the General Advice relates to the acquisition or possible acquisition of a financial product, you should obtain a Product Disclosure Statement (“PDS”) relating to the product and consider the PDS before making any decision about whether to acquire the product. You will find further details of the service we provide and any cost to you within the Financial Services Guide. Any references to past investment performance are not an indication of future investment returns. Prepared by EP Financial Service Pty Ltd ABN 52 130 772 495 AFSL 325 252 (“Elston”). Although every effort has been made to verify the accuracy of the information contained in this material, Elston, its officers, representatives, employees and agents disclaim all liability (except for any liability which by law cannot be excluded), for any error, inaccuracy in, or omission from the information contained in this material or any loss or damage suffered by any person directly or indirectly through relying on this information.