Shares in David Teoh’s TPG group continued to tumble for the third consecutive day on the ASX yesterday, following publication of its full-year results showing a 69 percent jump in net profit to $379.6 million – but with guidance for underlying earnings of $820m-$830 million in fiscal 2017 well below analysts’ expectations of $884.5 million.
The shares, which last week were selling for more than $12, plunged 24 percent to close at $11.33 on Monday; dipped further to $9.28 on Tuesday; and yesterday dropped yet another 6.9pc to finish the day at $8.63.
The tumbling price has wiped more than $2 billion off TPG’s market cap. The value of David Teoh’s 34pc stake alone dropped almost $600 million.
A major problem for future earnings is the rising cost of accessing and servicing customers on the NBN, according to New Street Research analyst Ian Martin.
TPG’s net profit for the latest year soared 72pc to $384 million. Revenue for the year to July 31 was actually up a solid 88pc at $2.39 billion: almost half of that, or $1059 million flowed from iiNet, which TPG acquired in 2015.
