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TPG Bundles In More Users, Over 1m

TPG Bundles In More Users, Over 1m Earnings (EBITDA) rose 24% to $363.7 million for FY14 to July 31 as TPG continues to capture broadband users and has over 350,000 mobile subscribers. 

FY14 marks the sixth consecutive year of strong growth for TPG Telecom, who recently launched controversial fibre to the basement (FTTB) broadband plans, to the dismay of NBN Co.

Net Profit (NPAT) also increased by 15% to $171.7m.

The Fy14 earnings result was above the top end guidance of $340m-$355m provided in March. There was also a maiden contribution from TPG recent acquisition AAPT, whose underlying EBITDA was above guidance, at $38.2m.

The telco reported strong organic growth across consumer and corporate divisions. TPG Consumer underlying EBITDA rose 19% with strong organic broadband subscriber growth – up 77,000 in 12 months – driven by the popularity of TPG’s strongly advertised bundled internet and home phone plans. 

There was an increase in contribution per subscriber and an uplift in ARPU (average revenue per user) from home phone bundle plans. 

TPG has well over one million subscribers – 748,000 broadband and 362,000 mobile subscribers.

500-600 are signing up to TPG’s  NBN plans per week as the company’s controversial ‘fibre to the building’ broadband service also went on sale this month, which last week escaped the wrath of regulators on a legislative loophole. 

The NBN Co accused TPG FTTB plan of ‘cherrypicking’ metro fibre customers while leaving rural users out in the cold. 

TPG forecast continued growth in FY15 with EBITDA expected to be $100 million above FY14, at $455-460m.