iiNet acquisition boosts TPG financial performance in FY16

20 Sep 2016

Australia’s TPG Telecom has published its financial results for the year ended 31 July 2016, revealing bumper growth in revenues on the back of its acquisition of rival broadband provider iiNet.

For the year under review, TPG Telecom generated a total turnover of AUD2.388 billion (approximately USD1.8 billion), up from AUD1.271 billion, with almost half of that attributed to iiNet, which saw revenues of AUD1.059 billion in FY 2016. Of the remainder, TPG’s consumer fixed broadband service revenue increased to AUD605 million from AUD544 million, though turnover from mobile and ‘other’ services offered to residential users declined by more than 17% year-on-year to AUD69.3 million. TPG/AAPT corporate revenues, by comparison, were relatively stable, rising by almost 2% to AUD655 million. Reported group EBITDA for FY 2016 totalled AUD849.4 million, which represented an annual increase of 75%, while net profit after tax (NPAT) was up by 69% year-on-year at AUD379.6 million.

In operational terms, at the end of July 2016 TPG had a total of 1.868 million broadband subscribers on its books, with more than half of those – 983,000 – signed up via iiNet, while the 885,000 attributed to TPG’s own-brand consumer broadband services represented a 7.8% year-on-year increase from 821,000 at mid-July 2016. Group mobile accesses were also up by dint of the iiNet acquisition, standing at 475,000 at 31 July 2016, with iiNet and TPG accounting for 171,000 and 304,000, respectively.