TPG Telecom reports higher profit as mobile gains offset sluggish broadband
Australian telecom giant TPG Telecom reported a 9.4% rise in net profit for the first half of the year, thanks to mobile business expansion despite softening broadband growth. The company, which manages Vodafone, TPG, iiNet, felix and Lebara brands, posted A$35 million in profit after tax from ongoing operations, up from A$32 million a year ago.
This increase resulted from lower financing costs, despite the inclusion of a one-time tax benefit in last year's figures. However, revenue from operations dipped slightly by 1%, falling from A$2.448 billion to A$2.425 billion due to a lack of growth in the home broadband segment. Despite this, TPG's mobile subscriber base expanded to 5.81 million by mid-June from 5.74 million at year-end, fueled by the success of its Digital First subscription services and mobile virtual network operators.
The home broadband subscriber count dropped to 1.94 million from 1.98 million, reflecting intense competition in the NBN market. TPG's board approved an interim dividend of 10.0 cents per share, franked 25%, matching the payout ratio from the previous final dividend. The dividend will be distributed on September 29, with a record date of August 28.
TPG Telecom, Australia's second-largest telecom operator, continues to navigate the evolving telecommunications landscape.
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