TPG reported full year results this morning and, although profits rose over 70%, forward guidance was lower than expected. Higher capital expenditure and higher costs are mostly to blame as TPG acquires more spectrum and extends its fibre network.
As we outlined in TPG’s biggest byte, the business was being richly valued and today’s 15% plus price fall isn’t necessarily an opportunity. This is not a call to action. We will go through the results in more detail in an upcoming review. For now, HOLD.