TPG shares lift on upgraded outlook for earnings, cost savings
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More news: Shares in TPG Telecom were up more than 4% to $5.66 in early trading on the ASX, after the telecoms operator upgraded its full-year earnings outlook to a $1.925 billion-$1.950 billion range and outlined a plan to simplify its brand and product portfolio, which will generate net cash benefits of $140 million by FY27.
TPG Telecom reports lower profit, plans to cut costs
The news: TPG Telecom has reported a slide in first-half profit and announced it will rationalise its brand and product portfolio.
The numbers: Net profit for the six months to 30 June was down 71% to $48 million, although the year-ago period had been inflated by a one-off tax credit of $110 million. Earnings rose 12.4% to $941 million, while revenue was up 3% to $2.71 billion. The company will pay an interim dividend of 9 cents a share, unchanged from a year ago.
The context: Australia’s third-biggest telecoms firm attributed most of its earnings growth to the mobile services business, which saw a gain of 39,000 subscribers. It will also simplify its brand and product portfolio, which it says will generate net cash benefits of $140 million by FY27. TPG, which recently received a $6.3 billion offer for its fixed network from Vocus, has upgraded its full-year earnings forecast to a $1.925 billion-$1.950 billion range, up from its previous guidance of $1.850 billion-$1.950 billion.
The source: ASX announcement
