Excluding the TPG Corporation contribution, revenue decreased 12 percent to AUD 1.51 billion. Reported EBITDA fell 9 percent to AUD 531 million, and includes 4-day EBITDA contribution of AUD 9 million from TPG Corporation and AUD 24 million of merger transaction costs. Excluding these items, the underlying TPG Telecom standalone EBITDA decreased 8 percent to AUD 546 million.
Net profit after tax amounted to AUD 83 million, including a one-off, non-cash credit to tax expense of AUD 226 million and one-off merger and other costs of AUD 30 million. Excluding these one-off items and TPG Corporation’s contribution of AUD 4 million, underlying TPG Telecom (former VHA) standalone NLAT improved 19 percent to AUD 117 million.
TPG Telecom also reports there were significant COVID-related impacts to revenue and EBITDA in the period. Global travel restrictions led to an 80 percent decrease in margin from roaming. The operator also saw a 30 percent decline in prepay connections and 20 percent decrease in postpaid connections.
"Strong start" for merged company
TPG Telecom also reports it made a “strong start” on merger integration activities, with 445 network upgrades performed since implementation. More than 1.8 million Australians have benefited from improved network performance following the integration of TPG Corporation spectrum into the Vodafone mobile network at 318 sites in Canberra, Tasmania, Southern Queensland, Darwin, Adelaide, regional Victoria, regional South Australia and parts of NSW, the company said.
TPG small cells have been activated and 700 MHz spectrum added to sites in the Melbourne CBD and parts of Sydney.
The company has also started a programme to connect TPG Corporation fibre to an additional 700 sites on the Vodafone mobile network. This builds on the 2015 commercial agreement which saw TPG Corporation fibre connected to more than 3,000 Vodafone mobile sites.
Starting 24 August, iiNet will begin inviting its existing mobile customers to migrate to the Vodafone mobile network, resulting in savings from third-party network costs, TPG said.
“By using our own mobile network, we’ll be able offer customers more inclusions for less, with new customers to receive 50 per cent off their plans for six months and existing migrating customers to receive two months’ free access”, TPG Telecom CEO Iñaki Berroeta said.
5G mobile network expansion
TPG Telecom has announced the 5G Vodafone mobile network is planned to reach more than 85 per cent of the population in Australia’s top six cities of Sydney, Melbourne, Brisbane, Adelaide, Perth and Canberra by the end of 2021. The company’s 5G rollout, which started in March this year, will enter a new phase in the second half of 2020, with deployments to increase over coming months. The company has started the rollout of its 5G standalone network capability, which is expected to significantly increase 5G coverage when available. The 5G standalone network will use 700 MHz spectrum.
Vodafone NBN customer base jumps 32% in H1
The Vodafone NBN customer base increased 32 percent since 31 December 2019 to 150,000 at 30 June 200. TPG’s fixed broadband subscriber base rose 2 percent to 1.971 million. However, the number of postpaid mobile customers decreased 2 percent to 3.354 million and prepaid mobile customers (excluding MVNO) decreased 10 percent to 1.818 million.
