CANBERRA: A slowdown in broadband subscriber growth has failed to dent TPG Telecom’s profits. TPG, Australia’s second biggest fixed-line internet provider, lifted full year profit and revenue by just under a third in the year to July 31.
The company delivered the result despite the pace of consumer broadband subscribers slowing during the year. TPG lifted broadband subscribers by 73,000, slightly less than the 77,000 added the previous year. However broadband revenue lifted nearly 14 per cent to $554.4 million.
TPG Telecom had a total of 821,000 broadband and 320,000 mobile subscribers by the end of July. Its acquisition of AAPT helped drive full year profit up to $224.1 million from $171.7 million a year ago.
TPG became Australia’s second biggest fixed-line internet provider behind Telstra early in September after wrapping up its $1.6 billion takeover of iiNet. The company declined to give guidance other than to say it expects continued organic growth in the year ahead.
“However, as only a few weeks have elapsed since the completion of the acquisition of iiNet, it is not yet possible to forecast with sufficient certainty the likely financial results for the combined group for the year ahead and, therefore, no specific guidance is yet provided for FY16,” TPG executive chairman David Teoh said.
Despite the rise in profit, TPG’s shares fell 48 cents, or 4.58 per cent, to $10.00. CMC Markets chief market analyst Michael McCarthy said TPG’s share price had risen substantially in the past three weeks.
“A 31 per cent increase in profit is really good, but it was already priced in,” he said. “Their share price has risen almost 25 per cent in lead-up to the result, so it’s no surprise that, in the short term, there will be a bit of selling.”
