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TPG Telecom Reports Growth in Half-Year Earnings

TPG Telecom Reports Growth in Half-Year Earnings
TPG’s Consumer division had 853k broadband subscribers and 297k mobile subscribers.
Mar 22, 2016 By Ben Khouri Tags: TPM

TPG Telecom (ASX:TPM) has released their results for the half year ending 31st January 2016. The results were relatively encouraging, with the telecommunications and broadband service provider reporting significant improvements in earnings.

Revenue up 84%

Over the course of the period, revenue was $1.15billion, an 84% improvement to the PCP. On an underlying basis, EBITDA and NPAT grew 56% and 36%, to $368.8million and $162.3million respectively. Furthermore, the group achieved 42% growth in operating cash flow, to $339.9million. 

The principle drivers of growth during this period was TPG’s Consumer and Corporate divisions, which contributed $257.5million to their first half EBITDA, an almost 10% improvement to the PCP. Moreover, TPG’s iiNet operations added $107.1million to first half EBITDA, equating to approximately 10% growth for the period. iiNet’s total broadband subscribers for the period was in line to the end of FY15, with 989k broadband subscribers, along with 34k NBN growth during the period.

TPG’s Consumer division had 853k broadband subscribers and 297k mobile subscribers.

Capex Rose 58%

Capital expenditure (capex) had increased around 58% for the period, to $133.4million. Additionally, overall group debt as at the 31st January 2016 was $1.4billion, with a net debt to annualised EBITDA leverage ratio of 2.1x.

Increased Dividend

The board of directors have declared an interim fully franked dividend of 7.0cents per share. This is a 27% increase to the prior interim dividend.

The Record and Payment date are on the 19th of April and 24th of May respectively.

FY16 Guidance

For the full year FY16, the group forecasts underlying EBITDA to be in the range of $770-775million, with Capex to be approximately between $280-310million.

As at 10.18am (AEDT), TPM is up approximately 5.7% upon open, to $10.95.

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Ben Khouri Author: Ben Khouri Mar 22, 2016

Ben Khouri is a financial editor for Wise-Owl with a particular focus on the top ASX 300 companies. Having a vast background in economics and finance, Ben provides financial commentary & analysis as well as global market updates, which guide investors in devising investment strategies. Ben specialises in analysing economic data and global events from around the world and examines the impacts they have on the major equity markets.

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