SP Telemedia plans set-top box & phone service

Stuart Corner
Tuesday, 22 September 2009 09:32

IT Industry - Strategy

"In the 15 months since the April 2008 merger with TPG, the group has repaid $95m of bank debt, putting it $72m ahead of its debt repayment schedule. The company now has only $58m of bank debt remaining and its next compulsory debt repayment does not arise until February 2011."

SP Telemedia said growth had been underpinned by broadband subscribers, with net additions for the FY09 year of 88,000 including 56,000 added in the second half-year. The company had 400,000 broadband subscribers in September 2009, a market share of DSL broadband of 9.2 percent.

At the end of the financial year, which for SP Telemedia is 31 July, it had 256,000 DSL subscribers on its own DSLAMs and 132,000 resale customers. It has DSLAMs in 333 exchanges and says installation in a further 63 is in progress, mainly on WA, which has only nine at present. Existing DSLAMs are being upgrade to support new voice portals.

The TPG consumer mobile offering, launched in late 2008 had signed up more than 90,000 subscribers by 31 July 2009, made up of new customers and customers transferring from their Soul post paid plans. At 31 July there were a further 130,000 mobile customers on Soul plans.

The consumer business accounts for the bulk of the company's business ($362.2m of $481.2m revenue and $78.1m of $98.5m EBITDA0 with corporate making up the rest. The company said: "The corporate and government business has continued to focus on improving systems and processes resulting in improved customer service levels, with increasing on-net services providing improved margins."