Customer growth lifts TPG profit

Written By Unknown on Selasa, 17 September 2013 | 13.24

TPG has increased customer numbers at a faster rate than last year, substantially boosting the telco's annual profit.

TPG made a net profit of $149.2 million in the year to July 31, up 64 per cent on $90.96 million in the previous year.

The prior year's result was skewed by a $23 million one-off tax expense.

When that item is excluded, TPG's net profit rose by 31 per cent in 2012/13.

TPG's broadband subscriber base grew by 76,000 in 2012/13, compared to growth of 47,000 in fiscal 2012.

The number of subscribers to TPG's home phone and broadband bundle plans rose by 130,000, which was partly offset by a fall of 54,000 in standalone customers and customers not using TPG's own fibre network.

TPG's mobile phone subscribers increased by 105,000, compared to a rise of 54,000 in fiscal 2012.

The company expects earnings before interest, tax, depreciation and amortisation (EBITDA) in 2013/14 to be between $290 million to $300 million, compared to $293.1 million in 2012/13.

Earnings from TPG's corporate division, which provides wholesale and corporate telecommunications infrastructure under the PIPE Networks brand, grew by more than 10 per cent in 2012/13.

The earnings growth was largely due to improved margins from investment in the group's fibre network.

TPG is planning to increase the number of buildings directly connected to its fibre network in Sydney, Melbourne, Brisbane, Adelaide and Perth.

"With the evolution of new technologies now enabling speeds of up to 100Mbps this will enable the group to commence offering very high speed broadband services to its customers at ADSL2+ prices," TPG said.

TPG increased its domestic fibre network by more than 800 kilometres in 2012/13, to more than 3,800 kilometres.

More than 300 extra buildings were directly connected to the network, taking the total number connected to more than 1,600.

TPG shares were up 48 cents at $4.18 at 1532 AEST.


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