TPG turns in a good first half performance

Stuart Corner
Tuesday, 22 March 2011 12:27

IT Industry - Listed Tech

TPG Telecom (ASX: TPG) has reported substantially improved performance for the half year to 31 January 2011, the first full half to include the results for Pipe Networks, which TPG acquired in May 2010.

Revenue was up 15 percent to $228.0mm EBITDA up 47 percent to $113.0m and net profit after tax up 23 percent to $33.8m. TPG said: "This result has been driven by continued strong organic subscriber growth, a first full half year EBITDA contribution from PIPE Networks of $26m, as well as further margin improvement across all of the group's continuing business operations."

TPG said that, in addition to contributing valuable infrastructure to its operations, Pipe Networks had "experienced a very successful half year including the signing of notable dark fibre contracts with ASX, IRESS and VHA."

Broadband subscribers increased by 27,000 for the half year and others were moved on net to give a total on-net growth of 40,000. TPG said its on-net broadband and home phone bundle had been particularly successful. "Launched in April 2010, the number of bundle customers increased from 9,000 to 52,000 in the half year."

TPG has increased its FY11 EBITDA guidance to be between $225m and $230m, from $215m to $225m.