The Telstra Corporation Ltd (ASX: TLS) share price has rebounded strongly in the past 12 months. Shares in the Aussie telco have surged 35.7% higher over the period to Tuesday's closing price of $3.84 per share.
That's better than the 26.6% gains from the S&P/ASX 200 Index (ASX: XJO) over the same period.
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Why the Telstra share price has beaten the ASX 200 in the last year
2021 has been a strong year after a disappointing run for shareholders in recent years. Telstra has long promised a turnaround of operations and a return to growth which hasn't really been seen since the arrival of NBN Co.
However, the telco appears to be finally turning things around if its full-year results are anything to go by.
The Telstra share price climbed higher following the result despite the company reporting a 9.7% decline in underlying earnings before interest, tax, depreciation and amortisation (EBITDA) to $6.7 billion.
The key is looking at the growth Telstra expects to see in FY22. The Aussie telco is forecasting underlying EBITDA of $7 billion to $7.3 billion in the current financial year with hopes of $7.5 billion to $8.5 billion in FY23.
A continued focus on cost control, as well as easing impacts from NBN, have things looking brighter for Telstra.
There's also the reduced threat of new market entrants as a result of the recent merger to create TPG Telecom Ltd (ASX: TPG) as a third, large-scale telco.
These factors appear to have helped boost the Telstra share price higher in 2021. On the flipside, the ASX 200 has had some big-name shares weighing on growth.
Some of the biggest names within the index in previous years have fallen heavily in 2021. Among them are energy giants like AGL Energy Limited (ASX: AGL), currently at an 18-year low, AMP Ltd (ASX: AMP) and A2 Milk Company Ltd (ASX: A2M).
That, combined with signs of growth for the Aussie telco, has enabled the Telstra share price to outperform the benchmark index in the past 12 months.
Foolish takeaway
The Telstra share price is now up 35.7% in the past 12 months and outperforming many of its ASX 200 peers. Investors will be hoping that the promised growth is delivered upon in the years to come.
