TPG sees net profit soar 90 per cent in first half FY16

EBITDA increased 85 per cent to $437.3 million

ASX-listed TPG Telecom has seen its net profit soar 90 per cent to $202.5 million for the first half of FY16, ending January 31. This is in comparison to the same time last year.

EBITDA increased 85 per cent to $437.3 million and earnings per share increased 83 per cent to 24.5 cents per share.

The acquisition of iiNet has contributed EBITDA of $107.1 million for the five and a quarter months post acquisition, inclusive of $4 million in restructuring costs that derived from integration activities. iiNet’s underlying EBITDA for the first half of FY15 was $97 million.

According to TPG, some of the factors that contributed towards EBITDA growth were the post-acquisition integration benefits, three months of lower access costs arising from ACCC’s fixed access determination and an increased contribution from Tech2.

iiNet’s total broadband subscribers on January 31 were 989,000.

The TPG Consumer Division’s EBITDA was $125.6 million compared to $117 million in the first half of FY15. This was due to the telco experiencing organic broadband subscriber growth, which was up 32,000 in the half-year. As of January, TPG’s consumer division had 853,000 broadband subscribers and 297,000 mobile subscribers.

TPG’s corporate division EBITDA was $131.9 million, up from $117.7 million at the same time last year.

In July last year, iiNet shareholders (95 per cent) voted in favour of TPG’s $1.56 billion takeover offer.

At the time, iiNet chairman, Michael Smith, said the telecommunications sector was heading towards an inevitable consolidation phase.

"It's clear we have built a business with a brand, customer base and reputation for customer service that a number of key players in the industry would like to own," Smith said.

Join the newsletter!

Error: Please check your email address.
Rocket to Success - Your 10 Tips for Smarter ERP System Selection

Tags iiNetTPG Telecom

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.
Julia Talevski
Show Comments

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Sarah Ieroianni

Brother QL-820NWB Professional Label Printer

The print quality also does not disappoint, it’s clear, bold, doesn’t smudge and the text is perfectly sized.

Ratchada Dunn

Sharp PN-40TC1 Huddle Board

The Huddle Board’s built in program; Sharp Touch Viewing software allows us to easily manipulate and edit our documents (jpegs and PDFs) all at the same time on the dashboard.

George Khoury

Sharp PN-40TC1 Huddle Board

The biggest perks for me would be that it comes with easy to use and comprehensive programs that make the collaboration process a whole lot more intuitive and organic

David Coyle

Brother PocketJet PJ-773 A4 Portable Thermal Printer

I rate the printer as a 5 out of 5 stars as it has been able to fit seamlessly into my busy and mobile lifestyle.

Kurt Hegetschweiler

Brother PocketJet PJ-773 A4 Portable Thermal Printer

It’s perfect for mobile workers. Just take it out — it’s small enough to sit anywhere — turn it on, load a sheet of paper, and start printing.

Matthew Stivala

HP OfficeJet 250 Mobile Printer

The HP OfficeJet 250 Mobile Printer is a great device that fits perfectly into my fast paced and mobile lifestyle. My first impression of the printer itself was how incredibly compact and sleek the device was.

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?