TPG Telecom shows its financial strength

TPG Telecom shows its financial strength

Amid calls for shareholders to reject its acquisition offer for iiNet, TPG posts strong FY15 first half results

ASX-listed TPG Telecom has flexed it financial muscle after revealing a net profit after tax increase of 18 per cent to $106.7 million and EBITDA increase 43 per cent to $236.2 million for its first half of 2015 financial year, ending January 31.

TPG’s corporate division achieved $117.7 million in EBITDA during the period compared to $64.5 million in the previous period. A large component of the growth was attributed to its AAPT acquisition.

Within its consumer business, the number of broadband subscribers jumped to 38,000 – 2000 more than the same time last year, putting the overall figure at 786,000. It has 342,000 mobile subscribers.

TPG has raised its EBITDA guidance from $455-$460 million to an estimated range of $480 - $483 million for the full financial year.

In March, TPG announced its intentions to acquire iiNet for $8.60 per share, valuing the deal at about $1.4 billion. The deal is subject to certain conditions including ACCC and iiNet shareholder approval.

Recent reports highlighted iiNet’s shareholder concerns about the acquisition.Founder, Michael Malone, stated that deal wasn’t in the best interest for shareholders, customers and staff.

TPG has raised its EBITDA guidance from $455-$460 million to an estimated range of $480 - $483 million.

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Tags iiNetfinancial resultsMichael MaloneTPG Telecom

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