TPG Telecom (TPG) H1 2025 earnings summary

Executive summary

• Service revenue rose 2.2% year-over-year to $2,060 million, driven by 100,000 new mobile subscribers after regional network expansion and strong digital-first brand performance.

• Net profit after tax increased to $32 million, up materially year-over-year, aided by improved operations, lower financing costs, and a one-off tax benefit.

• Interim dividend of 9.0 cents per share declared, targeting 18.0 cents per share for FY25, with a new policy aiming for sustainable annual dividend growth.

• Completed sale of fibre and EGW fixed assets to Vocus, transitioning to a mobile-led, simpler business model.

• Major capital management initiatives announced: up to $3 billion capital return, $2.4 billion debt repayment, and a reinvestment plan for minority shareholders.

Financial highlights

• EBITDA from continuing operations was $813 million, up 1.0% year-over-year; pro forma EBITDA (guidance basis) was $786 million, up 0.9%.

• Operating free cash flow rose 35% year-over-year to $246 million, with free cash flow to equity up $152 million to $103 million.

• Return on invested capital improved to 6.2%, up 80 basis points year-over-year.

• Cash capital expenditure (excluding spectrum) was $473 million, down 7.3% year-over-year; FY25 guidance is $790 million.

• Statutory EPS from continuing operations was 1.7 cents, up from 0.4 cents in HY24.

Outlook and guidance

• FY25 pro forma EBITDA guidance is $1,605–$1,655 million, unchanged from prior outlook.

• Cash capex guidance for FY25 is $790 million, with a target of $750 million in FY26 and $550–650 million from FY27.

• Dividend policy targets 18 cents per share for FY25, with intent to increase in line with profit and cash flow growth.

• Free cash flow expected to grow further as capex declines, working capital improves, and debt servicing costs fall.

• Guidance subject to no material change in operating conditions.