iiNet acquisition boosts TPG’s financial results for H1 2016

22 Mar 2016

Australia’s TPG Telecom has published its financial results for the six months ended 31 January 2016 (H1 2016), with revenues rising by 84% year-on-year on both a reported and underlying basis.

Boosted by the acquisition of rival telco iiNet – which it completed in September 2015 – TPG generated a total turnover of AUD1.153 billion (USD826 million) in the period under review, up from the AUD627.3 million in the first half of its previous fiscal year. Of the revenue total, TPG revealed that the iiNet accounted for AUD496.9 million, while TPG’s own consumer and corporate turnovers stood at AUD330.9 million and AUD325.2 million, respectively.

Reported EBITDA in 1H16 totalled AUD437.3 million, representing a 85% increase from the AUD236.2 million it recorded in the corresponding period a year earlier, while on an underlying basis the year-on-year increase was 56%. Reported net profit after tax, meanwhile, was AUD202.5 million in first half of the company’s 2015-16 financial year, up 90% against the AUD106.7 million recorded a year earlier.

In operational terms, at the end of January 2016 the combined TPG and iiNet boasted a broadband subscriber base of 1.842 million, of which the larger portion – 989,000 – were attributed to iiNet, with TPG’s own accesses rising to 853,000 at the end of the reporting period, from 782,000 a year earlier. Mobile subscribers totalled 473,000, meanwhile, with 297,000 of those signed up to a TPG-branded plan and the remaining 176,000 signed up via iiNet.