By Stuart Condie

SYDNEY--Telstra Corp. Ltd. Chief Executive Andrew Penn will retire in August after more than seven years in charge of Australia's largest telecommunications provider, which will promote Chief Financial Officer Vicki Brady to replace him.

Telstra on Wednesday said that Ms. Brady will take over on Sept. 1 after transitioning into the role over the next few months. Ms. Brady led Telstra's consumer and small business operations before becoming CFO in 2019.

Mr. Penn led Telstra through the rollout of the government-owned National Broadband Network, which reduced incumbents' earnings from fixed-line services. Telstra last month reported a 5.1% rise in first-half earnings and Mr. Penn said the company was nearing the end of the multi-year period in which the NBN dragged.

The recovery followed a company-wide restructure that included cutting headcount and costs, and a near-complete separation of Telstra's various operations into standalone units. Telstra already sold a 49% stake in its mobile infrastructure, raising an above-expectation 2.8 billion Australian dollars (US$2.10 billion).

"Andy has led Telstra during a period of significant change and will be known for his courage," Chairman John Mullen said. "There is no doubt the strategy has delivered beyond expectations."

Ms. Brady will inherit a company with ambitions to also become a major energy retailer. It is also investing in health services.

Shares in Telstra hit a near five-year high in January. With the company flagging earnings growth amid a recovery in mobile revenues, the average analyst price target is A$4.44, according to data compiled by FactSet. Telstra ended Tuesday at A$3.93.


Write to Stuart Condie at stuart.condie@wsj.com


(END) Dow Jones Newswires

03-29-22 1747ET