Telstra lifts half-year profit, dividend

Telstra posted a 26 per cent increase in first-half profit thanks to growth in its mobiles business. (Joel Carrett/AAP PHOTOS) (AAP)

Telstra has lifted its interim dividend after posting a jump in first-half profit but cautioned about rising costs and a smaller increase in full-year revenue.

Australia's biggest telecommunications company on Thursday reported net profit of $934 million for the six months to December 31, a 25.7 per cent increase from the previous year.