TPG Profit Down 76% After Mobile Axe
TPG Telecom has post a whopping 76% slump in half-year profit, after ditching its Australian mobile network build in January.
For the six months to January 31, net profit slumped to $46.9 million versus $198.6 million the year before.
Half-year revenue dropped 1.5% year-on-year to $1.25 billion.
Excluding a $227.4 million impairment charge relating to its mobile network exit, and $4.4 million one-off transaction cost over its proposed merger with Vodafone Hutchinson Australia, underlying net profit lift 3.5% to $225.2 million.
The news comes as TPG awaits ACCC approval over its planned merger with Vodafone Hutchinson, creating a $15 billion powerhouse.
The regulator’s decision has been delayed to April, after voicing “preliminary competition concerns” last year.
In January, TPG announced it had ceased rollout of its local mobile network, citing the Australian government’s ban of Huawei 5G equipment as a key contributor.
Despite this, some commentators claim the significant write downs and network axing seek to encourage the ACCC’s approval.
The telco has kept its fully franked interim dividend flat at 2 cents, whilst reaffirming full-year EBITDA guidance of $800 million – $820 million (exc. merger costs/expenses relating to its local or Singapore mobile division).