TPG Telecom shares gain on underlying earnings growth
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The news: TPG Telecom shares lifted after the company reported increased underlying earnings for the 12 months to December, boosted by a growing number of mobile customers thanks to its new network-sharing agreement with Optus.
TPG shares were up 3.5% to $4.68 at 3:15pm AEDT.
TPG Telecom swings to $107m loss but holds dividends steady
The news: TPG Telecom has kept its dividend steady and flagged a lift in full-year earnings despite swinging to a full-year loss on the back of non-cash impairments and slowing growth.
The numbers: It reported a net loss of $107 million for the year to December 2024, down from a $49 million profit a year earlier. That reflected a $250 million write-down on its regional mobile network assets, $20 million in transaction costs and $6 million in redundancy costs. Excluding the one-off costs, earnings were up 3.4% to $1.98 billion. The company will pay a final dividend of 9 cents a share, unchanged from a year ago.
The context: Australia’s third-biggest telecoms firm reported a 1.8% increase in mobile subscribers to 5.51 million, with a rise in the prepaid segment helping offset a drop in postpaid subscribers amid aggressive competition and the shutdown of the 3G network.
TPG is continuing to assess how it will utilise proceeds from the $5.25 billion sale of its fibre networks to Vocus Group, which is still awaiting regulatory approval. However, the company forecast a lift in earnings in FY25 to between $1.95 billion and $2.02 billion. It expects capital expenditure for the year to be about $900 million.
The source: ASX
