Telstra Corporation Limited (ASX:TLS) has suggested that it could be gearing up for a share buyback next year.
Telstra's chief financial officer, John Stanhope, yesterday told shareholders that the cash flows expected from the $11 billion national broadband network deal are likely accumulate excess cash.
My Stanhope said any immediate capital management or capital return to shareholders is probably limited to only one method, and that is, to buy back shares on market.
The telco believes a share buyback would not impact its franking credits and enable it to maintain its current 28 cent dividend in the short term.
More details are expected at Telstra’s investor day in November. The NBN deal will be put to a shareholder vote on October 18, 2011
Last month Telstra posted full-year net profit of $3.25 billion.
