- TPG Telecom (TPG) will pay an interim dividend, despite the company’s net profit after tax dropping by 8 per cent to $76 million
- The telecommunication business will pay its shareholders a dividend of 8 cents per share, with earnings and revenue increasing during the half-year
- The company reported $38 million savings from its merger with Vodafone and says it on track to hit its $70 million 2021 synergy savings target
- TPG reports its 5G rollout now reaches 85 per cent of the population, but flagged a strategic review is underway of its tower assets
- Shares in TPG closed down 0.45 per cent at $6.58 per share
TPG Telecom (TPG) will pay an interim dividend, despite the company’s net profit after tax dropping by 8 per cent.
The telecommunications business reported an NPAT of $76 million, down from last year’s profit of $83 million.
It wasn’t all bad news though, with the company’s revenue rising by 71 per cent year on year to total $2.63 billion at the end of June 30.
Earnings before interest, taxes, depreciation and amortisation also rose by 67 per cent to hit $886 million.
Shareholders of TPG, which now owns Vodafone and iiNet, have been issued an interim dividend of 8 cents per share.
CEO Iñaki Berroeta said the company had delivered for shareholders, despite a number of challenges.
“The group’s EBITDA result is pleasing and demonstrates a solid underlying performance achieved through the realisation of $38 million in merger cost synergies and strong commercial management,” Mr Berroeta said.
“In an environment with continued headwinds from COVID-19, NBN margin erosion and the new RBS levy, and residual challenges from the merger delay and 5G vendor restrictions, we are performing well.”
The company said it was on track to hit its $70 million 2021 synergy savings target, after completing its merger with Vodafone last year.
Activities wise, TPG reported its 5G rollout now reached 85 per cent of the population, but flagged a strategic review is underway of its tower assets.
Additionally, the telco’s number of postpaid mobile subscriber declined to 3.19 million, while prepaid mobile subscriber base dropped to 1.91 million.
Shares in TPG closed down 0.91 per cent at $6.55 per share on August 20.