Revenues for the 12 months to 31 July increased by 4.3 percent year-on-year to AUD 2.5 billion, following the full integration of the iiNet business that TPG acquired in 2015. Underlying earnings jumped 8 percent to AUD 835 million, exceeding the AUD 820-830 million guidance issued in April. TPG still cut its dividend from 7.5 cents per share to 2 cents.
According to TPG executive chairman David Teoh, shareholders would benefit in the long term from a "fiscally prudent" decision to put its cash into the new mobile phone network it announced in April, Australian Associated Press reports. "The board has concluded that it is in the best interests of shareholders that a greater proportion of profits be retained in the company to be deployed in the mobile rollouts," Teoh said.
The reduced dividend takes TPG's total payout for the year to 10 cents, compared to 14.5 cents in the year-earlier period.
TPG said its mobile network will be operational in parts of Sydney, Melbourne and Canberra ahead of schedule by mid-2018.
Chief financial officer Stephen Banfield expects earnings to fall to between AUD 800 million and AUD 815 million in 2017/18, with 400,000 to 500,000 fixed line subscribers expected to shift to the NBN.
Banfield also said TPG remains "comfortable" with its initial capex guidance of AUD 600 million over the next two to three years for the mobile network but did not say when the project was expected to break even.
