TPG First-Half Profit Slips Following NBN Headwinds

TPG has posted a first-half profit of $198.7 million, an 11.3 per cent fall from last corresponding year.

The decline was described as a result of customers’ transition to lower margin NBN services and increasing electricity prices. TPG’s subsidiary iiNet also saw a $9 million fall in fixed voice gross profit.

The telecommunications company recorded earnings before interest, tax, depreciation and amortisation (EBITDA) of $418 million, slipping 11.7 per cent from the previous year.

TPG’s corporate sector saw a slight increase in its EBITDA to $158.7 million, but the consumer sector decreased by $7.6 million to $260.2 million.

Despite the general decline, the company remained optimistic, upgrading its guidance for underlying pre-tax earnings from $800-$815 million to $825-$830 million.

“The projected capital expenditure on both projects remains in line with original forecasts,” the company said in a statement. “Small cell deployment in Australia is well underway with sites already installed in Sydney and Melbourne.”