TPG shares are down sharply as investors react to a senior member’s imminent exit, leaving control of the $10bn telco giant in the hands of Team Vodafone.
The nation’s three largest telcos have laid down more than half a billion dollars for slots on the new superfast 26GHz radio wave spectrum critical to their 5G ambitions.
TPG Telecom has posted strong full year FY2021 financials for its first post-merger result, thanks to an increase in market share for fixed-line NBN and strong enterprise sales.
In the 12 months ended 31 December 2020, TPG reported net profit after tax of $734 million, revenue of $4.35 billion and EBITDA of $1.39 billion.
All metrics represented sizable increases from the previous year as the FY2019 full year results only accounted for Vodafone’s full year financials and just six months of TPG’s financials at the time.
Contributing to the revenue included a 6 percent increase in its fixed broadband customer base with 117,000 new subscribers during the period, as well as selling the most NBN Enterprise Ethernet in Australia.
Pretax profit ($m) -86 v -280Â Â
Net profit ($m) 734 v -280
Interim dividend 7.5c payable on April 14Â
TPG Telecom has swung to an after-tax profit of $734 million in its first full-year result since merging with Vodafone Hutchinson Australia, thanks largely to a one-off tax credit that lifted the bottom line into the black.
The company said the $820 million tax credit arose due to historical tax losses that had accumulated on Vodafoneâs balance sheet and were now able to be used.
TPG Telecom chief executive Iñaki Berroeta. Â
Louie Douvis
Still, chief executive Iñaki Berroeta said TPG was primed to grow in the future owing to its new-found scale as a merged entity.
TPG took AU$90 million hit from COVID-19 in 2020 zdnet.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from zdnet.com Daily Mail and Mail on Sunday newspapers.