On 19th March 2019, TPG announced its half yearly FY19 results. In a market where margins are being squeezed and points of differentiation are difficult to obtain, TPG has delivered a set of stable results, with the consumer segment suffering slight revenue loses that are partially offset by increased corporate revenues. Meanwhile, EBITDA margins have increased on the back of fibre contract contributions.
Profit has plunged to A$46.9mn compared to A$198.6mn 12 months ago, though much of this was a result of the write down of its spectrum assets and small cells mobile network. Reported EBITDA was severely affected by the company’s decision to cease its mobile network to the tune of A$227.4mn along with a small impact of A$4.4mn from transactional costs associated with the TPG-VHA merger. Underlying EBITDA in fact increased 2.8% to A$424.4mn.
The announcement was also the clearest indicator of TPG potentially no longer offering entry level A$60 per month NBN, echoing industry consensus that NBN pricing is unsustainable.