Shares in the ASX-listed TPG Telecom are hovering around a record low level.
At 3.15pm on Friday, it was trading at A$4.32 – an approximate 15 per cent decline over the last year.
In February this year, TPG reported that its annual profits were down nearly 90 per cent year-on-year to A$49 million from A$513 million a year earlier.
TPG has been a major fixture in Australia’s telecom sector with its high-profile merger with Vodafone a few years ago.
Plans announcing the merger of TPG Telecom and Vodafone Australia were announced back in 2018, and was completed by 2020.
But media reports from earlier this year indicate that the relationship between the two is souring.
Three-and-a-half years after their $15 billion merger, the London-listed Vodafone Group was reported to be considering ending its relationship with TPG Telecom.
Vodafone, which owns 50.1 per cent of TPG Telecom – alongside billionaire Li Ka-Shing’s Vodafone Hutchison Australia – was considering selling its stake in TPG Telecom, according to Financial Review.
If Vodafone follows through with those plans, it would be the first sell-down since the merger took effect.
In a major setback for TPG Telecom last year, its shares plunged after it failed to reach an agreement with Vocus over a $6.3 billion transaction to offload its Vision Network.
Also last year, the Australia Competition Tribunal stepped in to stop a network sharing arrangement between TPG and Telstra.
Even though the company continues to struggle, its market cap is at A$8.26 billion
In February, TPG revealed that its mobile phone services business revenue rose 9.3 per cent to A$2.1 billion as subscriber numbers rose by 175,000 to 5.46 million.
The number of its postpaid customers rose 17,000 to 2.97 million, while prepaid customers increased by 167,000 to 2.18 million.
