TPG Telecom sees first-half profit jump to $32m, reiterates guidance
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The news: TPG Telecom reported a surge in first-half statutory profit to $32 million, from $7 million in the prior corresponding period, as the telco was boosted by growth in mobile subscribers and a simplified cost base.
The numbers: Service revenue rose 2.2% year on year to $2.06 billion, driven by 100,000 new mobile subscribers following a regional network expansion.
EBITDA ticked up 1% to $813 million. The company has reiterated full-year EBITDA guidance of $1.605 billion to $1.655 billion.
TPG declared an interim dividend of 9 cents per share, flat with a year earlier. The company said it aims to increase the payout over time, subject to sustainable growth in profit and cash flow.
The context: TPG said its mobile subscription growth during the half was its strongest since borders reopened after the Covid pandemic, driven by its regional network expansion in January.
TPG's bottom line benefitted from year-on-year earnings growth, flat depreciation and amortisation expense, lower financing costs, and an $8 million income tax benefit.
Fixed service revenue was boosted by continued growth in TPG's fixed wireless broadband offering. The company said this helped offset industry-wide challenges in the NBN market, which continues to be "adversely impacted by high wholesale prices and intense competition from new telco and non-telco entrants".
The source: ASX
