Telstra is expected to have made a profit of more than $2 billion in the six months to December, but an even larger number is set to attract the most attention.
Analysts expect the country's number one telco to reveal a $4 billion-plus pile of cash when it reports to the market on Thursday, a massive war chest that presents chief executive David Thodey a dilemma.
Does he return some of that money to shareholders though dividends or share buybacks, or use it to pursue further growth opportunities in Asia.
There's a good chance he'll opt for a bit of both, but IG Market Strategist Evan Lucas believes Mr Thodey is keen to increase Telstra's reach.
"David Thodey is now looking to grow the business, it's a question about whether he starts to hold back some of the cash for advantageous acquisitions," Mr Lucas said.
With around 15.6 million mobile customers, Telstra has little to no room left to grow in Australia, so it's been looking for opportunities offshore.
The company dramatically increased its presence in Asia recently through the $US697 million acquisition of Pacnet, which owns the world's largest submarine cable network.
Mr Lucas said shareholders should expect a higher dividend, probably by around one cent to 15.5 cents per share, according to current market consensus.
That would amount to a dividend yield below five per cent, which would probably make Telstra's current share price of $6.50 - near its highest price in more than 13 years - look a little steep income orientated investors.
"It's going to be very hard to see Telstra justifying $6.50, but everyone will stick with it because the revenue is very very solid, the income is very very solid and for the last seven years you've been getting an absolutely stellar dividend," he said.
"The issue is that that dividend is no longer as attractive."
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