TPG sees $90.1m profit in first half of fiscal 2014

Interim dividend raised 29 per cent, AAPT purchase excluded from period’s financials

TPG Telecom finished the first financial half of 2014 (ended January 31) with a net profit after tax (NPAT) of $90.1 million, a 15 per cent increase over the previous corresponding period.

The Internet service provider’s (ISP) board of directors bumped the company’s fully-franked interim fiscal 2014 dividend up by 29 per cent to $0.045 per share, payable to shareholders on May 20 on the register at April 15.

TPG’s corporate business achieved earnings before interest, tax, depreciation and amortisation (EBITDA) of $64.5m for the period, including $5.6m of non-recurring benefits. The result marks a $11.9m (or 25 per cent) increase from the first half of the 2013 financial year.

Meanwhile its consumer division’s EBITDA jumped $14.4m (or 17 per cent) to $100.2m, including $1m of non-recurring benefits. TPG’s consumer broadband subscriber base grew by 36,000 in the half year, attributed to its ADSL2+ with Home Phone bundle plans which gained 61,000 subscribers in the period. Standalone on-net customers dropped by 16,000, while off-net subscribers fell by 9,000.

On December 8, 2013, TPG announced it would purchase AAPT from Telecom NZ for $450m. The deal was completed in late February and therefore had no impact on its financials for the first half of fiscal 2014.

RELATED: Telecom completes $A450m sale of AAPT to TPG

TPG’s board has upgraded its fiscal 2014 EBITDA guidance (excluding AAPT) from between $290m and $300m to a new estimated range of $325m and $330m. AAPT is expected to contribute EBITDA of between $15m and $25m for the first five months from data of acquisition to July 31.

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