Customer growth helps TPG's bottom line

Customer growth helps TPG's bottom line

Reports 671,000 broadband subscribers and 360,000 mobile phone subscribers as at July 31.

ASX-listed TPG Telecom has grown its consumer broadband and mobile subscriber base during the 2013 financial year, ending July 31.

Broadband figures grew 76,000 in FY13, and home phone and broadband bundle plans increased an extra 130,000 subscribers. This takes its broadband subscriber base to 671,000. Mobile phone subscribers also jumped 105,000 taking its figures up to 360,000 customers as at July 31.

According to the statement on the ASX, TPG said the strong subscriber growth helped the consumer division increase EBITDA by $31.1 million to $180.6 million.

The telco’s corporate division achieved $110.3 million EBITDA, in line with FY12.

Overall, EBITDA was up 12 per cent to $293.1 million and net profit also rose 64 per cent to $149.2 million.

The telco plans to expand its existing fibre-to-the-building network, covering 500,000 units across Sydney, Melbourne, Adelaide, Brisbane and Perth.

It will supply up to 100Mbps unlimited downloads with home phone line rental for $69.99 per month on a 24 month plan.

During the financial year, TPG grew its domestic fibre network footprint to more than 800km to greater than 3800km, directly connecting more than 300 buildings to its network, which now exceeds 1600.

TPG said it was planning to increase the number of buildings directly connected to its fibre network in metro areas, and plans to offer high-speed broadband services to its customers at ADSL2+ prices.

Earlier this year, it was the surprise contender in the digital dividend action, securing 20MHz in spectrum licenses in the 2.5GHz band. It will be available in October next year, with the $13.5 million purchase price payable in September 2014.

In August, TPG stated its intentions to buy capacity on the Australia-US and Australia NZ segments of the Hawaiki submarine cable system, significantly adding capacity and diversity to its international network, which TPG expects will provide cost savings. Capital expenditure on this project is expected to be between $US10 million and $US20 million for each of the next three financial years from FY14 onwards.

During the year, it also invested $10 million to acquire a 15 per cent equity in data security software business, Cocoon Data Holdings and an exclusive license to distribute CDHL products across A/NZ. CDHLs’ Covata Secure Objects technology can be used to protect data in transit, storage and is expected to add more value to its consumer and corporate product offerings.

For FY14, the telco expects EBITDA to reach between $290 - $300 million.

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