SYDNEY, AAP – Telstra has improved full-year profit by 3.4 per cent and detailed a share buyback for investors.

The telco on Thursday reported lower earnings but had reduced costs enough to make a net profit after tax of $1.9 billion.

The company will also run a $1.35 billion on-market buyback after it sold part of its mobile towers business earlier this year.

The buyback is likely to begin after September 16.

Shareholders will receive a final dividend of eight cents per share. This is more than the previous final payout of 2.87 cents per share.