Telstra trims $19m from advertising bill as profit climbs

Telstra has cut its promotion and advertising expense by $19 million in the 2026 financial year, taking the total to $267 million as the telco tightened its broader cost base.

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The figure was down 6.6 per cent from $286 million a year earlier, according to Telstra’s FY26 annual report. The disclosed line is labelled “promotion and advertising”, rather than media spend specifically.

Advertising costs fall as profit grows

The reduction came despite a stronger bottom line. Telstra reported profit of $2.406 billion for the year to 30 June, up 2.7 per cent from $2.343 billion.

Total income excluding finance income slipped 0.9 per cent to $23.405 billion. Operating expenses fell 2.6 per cent to $14.592 billion, a reduction of $394 million.

Vicki Brady, chief executive officer of Telstra, said the company would continue its focus on cost control into FY27.

“We will also remain disciplined on costs, capital allocation and creating shareholder value.” Brady said.

Telstra also flagged an ongoing focus on productivity, simplification and positive operating leverage as it continues investing in its network and Connected Future 30 strategy.

Marketing leadership changed during FY26

The spending disclosure follows a change at the top of Telstra’s marketing function. Brent Smart, former chief marketing officer, stepped down in March after nearly four years with the telco.

Jana Kotatko, chief marketing officer, took over the function following Smart’s departure. Smart’s tenure included the “Wherever We Go” brand platform and a broader creative reset for Telstra.

The FY26 result covers the full year to June, meaning the $19 million reduction spans periods under both marketing leaders. Telstra did not provide a channel-by-channel breakdown of where the promotion and advertising savings were made.

For agencies and media owners, the result points to a leaner marketing cost base at one of Australia’s largest brands, even as Telstra’s overall earnings moved higher.