TPG doubles net profit

Stuart Corner
Tuesday, 21 September 2010 12:51

IT Industry - Listed Tech

TPG has reported EBITDA of $171.1m and NPAT of $55.7m for the year to 31 July 2010 representing increases of 41 percent and 216 percent respectively on the previous year.

TPG acquired Pipe Networks in March and said that, without Pipe's contribution to EBITDA and without the $5.7m of acquisition costs and due diligence fees associated with the acquisition, EBITDA would have been $161.2m, exceeding guidance of $152m - $158m.

Revenue grew six percent to $508.2m. TPG estimated Pipe's full year EBITDA as a stand-alone entity at $55.6m. EBITDA guidance for FY11 is $210m - $216m.

Of its $508.2m revenue, 51 percent came from broadband, 15.7 percent from mobile and 22 percent from corporate customers. This excluded 4.5 months of Pipe revenues, which accounted for 5.8 percent of total.

TPG said that Pipe's domestic backhaul and metropolitan fibre when combined with TPG's data and voice services was "presenting excellent corporate revenue and margin growth opportunities for the group'¦Corporate and wholesale customers are benefitting from the increased speed and reliability of fibre-based services where TPG's 100Mbps services are now available to businesses in Sydney, Melbourne and Brisbane. In the period since its acquisition by the group Pipe's domestic business has also continued to grow very strongly in its own right." (TPG has launched a 100Mbps service to customers with access to Pipe fibre for $599 per month.)

On the TPG side of its business, the company said it had added more than 100,000 net new broadband subscribers in the year, including a record 54,000 subscribers in the second half. All this growth was on net. Off-net customer numbers have been largely static at between 129,000 -138,000 since CY08. TPG has DSLAMs in 385 Telstra exchanges.

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