TPG Grows Broadband Business As Mobile Wobbles
TPG has posted strong results for the half year, with increased revenue and EBITDA as well as growth in its customer base across fixed and wireless broadband.
Revenue for the six months ending June 30, 2021 was $2.63 billion, up 71 per cent year-on-year, while EBITDA rose 67 per cent to $886 million, the company noting that TPG only contributed four days of results in HY20. Net profit after tax was down eight per cent to $76 million, though this was due in part to the HY20 results benefitting from a $226 million one-off accounting credit to income tax expense.
According to CEO Iñaki Berroeta, the telco has delivered a solid underlying performance despite external pressures, with $38 million in cost synergies realised from the Vodafone merger.
“In an environment with continued headwinds from COVID-19, NBN margin erosion and the new RBS levy, and residual challenges from the merger delay and 5G vendor restrictions, we are performing well.
“With 7.5 million consumer and business services, the largest family of owned telco brands in Australia, and a valuable portfolio of infrastructure assets, there is enormous potential to drive greater shareholder returns and exceptional customer experiences,” he said.
TPG’s total fixed broadband customer base increased by 23,000 over the six months to 2.20 million, while its NBN customer base grew by 48,000 to 1.95 million.
Mobile subscribers continued to drop, however, with postpaid declining 1.8 per cent to 3.19 million and prepaid dropping 3.4 per cent to 1.91 million; total mobile subscribers at 30 June were 5.11 million.
TPG noted that this is a flattening of the decline, and says it is confident its COVID-affected mobile business will return to growth when borders reopen and its 5G network reaches scale in major cities.
“We are seeing rapid early growth in NBN alternatives with our 4G home wireless customer base more than tripling in the first six months of the year, and we will build on this following the launch of our 5G home wireless in June.
“Our mobile network is better than ever through our fast-tracked 5G rollout and combined spectrum deployment, and this will support mobile and home wireless growth as 5G reaches scale in major cities by the end of the year,” said Berroeta.
TPG says it is on track to reach 85 per cent 5G population coverage in ten major Australian cities and regions by year’s end.