TPG Telecom net profits jump 114% in H1

Australian fixed and mobile operator TPG Telecom’s financial results show net profits increased by more than 114% YoY reaching A$167 million, driven by the sale of the operator’s tower assets.

The results showed service revenue grew 0.7%, reaching A$2,190 million in the first six months of 2022. Earnings before interest, tax, depreciation and amortisation (EBITDA), of Vodafone Australian parent company, went down by 5.3% compared to the same period last year reaching A$837 million. This drop seems to have included a A$35 million organisational restructuring cost to simply operations. Excluding the costs, EBITDA decreased by 1.4% in H1 2022 YoY.

Net profits increased by more than 114% YoY reaching A$167 million, significantly driven by the sale of the operator’s tower assets in the sum of A$110 million.

On the operational side, mobile subscribers grew less than 1% YoY with 135,000 net adds in H1 2022 while ARPU went up by 1% driven by higher international roaming charges in postpaid.

“Our strong competitive offering has driven growth in our mobile and fixed wireless subscriber base, positioning us to deliver improved performance as we complete our transition to a growth footing into the second half.” said CEO Iñaki Berroeta.

The operator states that the recovery of international travel and improving pandemic effects impacted the second quarter of 2022, leading to its overall growth results for H1 2022.

“As the market for international visitors continues to recover, we expect positive momentum to continue and look forward to welcoming more customers to our popular family of brands in the future.” stated the CEO. “TPG Telecom is transitioning to a new phase of growth following a prolonged period of markets uncertainty and expects earnings momentum to accelerate in the second half of FY22 with the full run-rate benefit of a higher Mobile subscriber base, targeted on-net strategies and tactical pricing to support Fixed product margins.”

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