TPG On Track With Guidance Amid ACCC Case
TPG Telecom Executive Chairman, David Teoh, claims the local telco industry remains “exceptionally challenging”, with the NBN roll-out affecting profitability.
Despite this, the company claims FY19 year-to-date results are tracking “well to the above guidance” at its AGM today.
It comes after the ACCC slammed TPG yesterday, for failing to refund customers’ $20 prepayment – asserting misleading costs may not have occurred.
TPG’s legal team claims it will cooperate with the court’s process, but denies advertising and contract terms were misleading or unfair.
The company is facing the prospect of tens of millions of dollars in penalties and refunds.
Concerning its merger with Vodafone Hutchinson Australia, transaction implementation preparation is in progress, with completion expected in the first half of 2019.
TPG has also avoided a second strike at its AGM – and threat of board spill – after 93.7% of proxy votes were in favour of its remuneration report.
It comes after shareholders delivered a first strike last year, with the Australian Shareholders’ Association calling for new entrants to its Board.
Concerning the merged entity, TPG asserts it’s “extremely excited” to form a “more formidable competitor” to Telstra and Optus.
The $15 billion deal leverages TPG’s fixed and mobile infrastructure, to provide a “more competitive” value proposition.
In September, TPG Telecom offered a FY19 guidance with [BAU] EBITDA of $800 million – $820 million, and a BAU capex of $180 million – $220 million.
The ACCC is expected to offer its clearance of the TPG Telecom and Vodafone merger on December 13.
Also making headlines is the lack of gender diversity within TPG’s board, encompassing five males.
Whilst nearly half of the new expanded board will be male, the company is yet to provide confirmation of female members.
Commentators claim there may also be a ‘culture clash’ between the two merged entities, heightened by Vodafone Hutchinson Australia’s CEO taking the reigns.
Read TPG Telecom’s Chairman’s address here.