TPG Optimistic of Growth Despite The Challenges
Australian Internet service provider TPG business is counting days until when the Australian borders would open again with the TPG Telecom business struggling to match Telstra’s share market rise.
The AFR claim that while Telstra’s share price has lifted over 30 per cent higher so far this year, TPG has failed to access a similar level of growth, even as analysts see mobile markets strengthening locally and an apparent end to the largest headwinds created by the national broadband network.
Instead, TPG’s share price has gone in the opposite direction, down nearly 3 per cent in year-to-date terms.
The COVID-19 pandemic has certainly dented the company by several notches with its shares tumbling down by three percent in year-to-date terms due to prolonged border closure brought on by disease.
“International travel and international roaming have a greater impact on that business than Telstra or Optus,” JPMorgan analyst Mark Busuttil told the Australian Financial Review.
He told the publication that the merger with Vodafone Hutchison Australia wasn’t helping the company with the latter losing over 500,000 mobile subscribers over border closures.
Despite the challenges that lied ahead, TPG is still optimistic that it can cover over 85 per cent of the population in Australia’s six largest cities by the end of this year.