(Reuters) -Top Australian telecom firm Telstra met consensus expectations for its first-half profit on the back of its mobile business and announced an A$750 million ($475.88 million) share buyback, citing cost discipline and confidence in its outlook.

Telstra will conduct the on-market buyback through 2025, which CEO Vicki Brady said was consistent with its capital management framework and demonstrated the company's financial strength.

Shares of the telecom were 3.3% higher at A$4.05 in early trading, the highest level since January 31.

Telstra posted a net profit of A$1.03 billion for the six months ending December 31, in line with the Visible Alpha consensus estimate and ahead of the A$964 million reported a year ago.

The company's consumer division, its biggest profit-generating segment, reported a 3.1% rise in revenue to A$5.53 billion as more people opted for its network, which bolstered its average revenue per user.

Rival Optus, Australia's No.2 telecom firm, reported on Wednesday 4% growth in third-quarter operating revenue helped by price increases for its postpaid plans and higher prepaid customers.

Telstra declared an interim dividend of 9.5 Australian cents per share, up from 9 Australian cents the prior year.

"An increase in dividend per share and A$750m buy-back show management is confident about the outlook after the conclusion of T25," analysts at Jefferies said in a note, referring to the T25 strategy to extend its 5G coverage and cut costs laid out in 2021.

Telstra, which provides retail mobile services to 22.5 million customers, said it would invest A$800 million over the next four years to upgrade its mobile network as demand for internet data surges rapidly.

"We are at an inflection point, where customer needs for technology and connectivity are becoming more sophisticated, requiring a step change in how connectivity is delivered and consumed," the telecom said.

Telstra said it was progressing well on its T25 strategy and remained on track to reduce its core fixed costs by A$350 million by the end of the current fiscal year.

($1 = 1.5760 Australian dollars)