TPG’s net profit slumps following decision to halt mobile network rollout

19 Mar 2019

Australia’s TPG Telecom has revealed a sizeable drop in net profit for the first half of its current fiscal year – ending 30 September 2019 – following a write-down related to its decision to discontinue its mobile network rollout. TPG reported a net profit of AUD46.9 million (USD33.3 million) for the six months to 31 January 2019, representing a year-on-year decline of more than 76% from the AUD198.6 million reported for H1 2018, on revenue that dipped to AUD1.236 billion from AUD1.255 billion. Consumer revenues represented the larger portion of the operator’s overall revenue, at AUD852.6 million (1H18: AUD880.6 million), while corporate revenues were up marginally y-o-y at AUD383.2 million (1H18: AUD374.0 million).

Reported EBITDA, meanwhile, stood at AUD420.0 million, up from AUD413.0 million, though TPG noted that excluding irregular items – including the AUD227.4 million impairment related to its aborted mobile network rollout and a further AUD4.4 million one-off transaction cost related to its proposed merger with Vodafone Hutchison Australia – underlying EBITDA was AUD424.4 million, against AUD413.0 million in the year earlier period.

With regards to operational indicators, TPG said it had a total of 1.922 million broadband subscribers on its books at end-January 2019, down marginally from 1.928 million a year earlier. Of the total, 988,000 were being served over the National Broadband Network (NBN), up from 720,000, with 725,000 classified as on-net ADSL subscribers (945,000); the remainder were split between on-net fibre/cable accesses (112,000, up from 101,000), off-net ADSL (74,000, down from 138,000) and ‘other’ off-net (22,000, down from 24,000). MVNO accesses, meanwhile, numbered 430,000 at the end of the reporting period, representing a 2.1% annualised increase.

Australia, TPG Corporation (incl. iiNet, Internode and AAPT)