TPG plans to expand fibre network
The company plans to extend its existing fibre networks to basements of apartments in major capital cities, promising NBN-like internet speed of 100 megabits per second.
The Coalition's broadband policy encourages internet services providers such as TPG to invest in infrastructure to speed up the delivery of broadband to households.
TPG's foray into the fibre network came as it reported a record net profit of $149.2 million for the financial year ended July, a 64 per cent increase from the previous year. Strong subscriber growth fuelled the profit lift, with TPG adding 76,000 customers in the past 12 months.
The company declared a fully franked dividend of 7.5¢ a share for the financial year.
TPG's mobile phone subscribers increased by 105,000, compared to a rise of 54,000 in fiscal 2012. The company expects earnings before interest, tax, depreciation and amortisation for the 2014 financial year to be between $290 million and $300 million, compared to $293.1 million in 2013.
Earnings from TPG's corporate division, which provides wholesale and corporate telecommunications infrastructure under the PIPE Networks brand, grew more than 10 per cent last year, largely due to improved margins from investment in the fibre network.
TPG shares jumped 14.7 per cent to $4.245 at the end of trading day. Citi analyst Justin Diddams labelled TPG's latest result as solid, coming in ahead of market expectations.
Frequently Asked Questions about this Article…
TPG Telecom plans to roll out fibre-optic cables to 500,000 apartments across Australia, extending its existing fibre networks into apartment basements in major capital cities and promising NBN-like internet speeds of around 100 megabits per second.
TPG says the move takes advantage of the Coalition government’s broadband policy, which encourages internet service providers to invest in infrastructure to speed up broadband delivery to households — creating an incentive for TPG to expand its fibre footprint.
TPG reported a record net profit of $149.2 million for the financial year ended July, a 64% increase from the previous year, driven by strong subscriber growth.
TPG declared a fully franked dividend of 7.5 cents per share for the financial year.
TPG expects earnings before interest, tax, depreciation and amortisation (EBITDA) for the 2014 financial year to be between $290 million and $300 million, compared with $293.1 million in 2013.
TPG added 76,000 customers in the past 12 months overall. Separately, its mobile phone subscribers increased by 105,000, up from a rise of 54,000 in fiscal 2012.
Earnings from TPG’s corporate division, which operates under the PIPE Networks brand and provides wholesale and corporate telecommunications infrastructure, grew by more than 10% last year — largely due to improved margins from investment in the fibre network.
TPG shares jumped 14.7% to $4.245 at the end of the trading day, and Citi analyst Justin Diddams described TPG’s latest result as solid and ahead of market expectations.
Call 1300 880 160
Start a chat
Schedule a call
