TPG Telecom (TPG) H1 2025 earnings summary

Executive summary

• Achieved strong first half 2025 results with mobile subscriber base up 100,000, driven by regional network expansion and digital-first brands, and supported by disciplined cost control and growing cash flow momentum.

• Service revenue grew 2.2% year-over-year to $2,060 million, led by mobile, with gross margin up 0.8% to $1,320 million.

• Net profit after tax from continuing operations 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 cents per share declared, targeting 18 cents for 2025, with a new policy aiming for sustainable annual dividend growth.

• Completed sale of fixed and fibre assets to Vocus Group, transitioning to a mobile-led integrated telecom company.

Financial highlights

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

• Statutory EBITDA up 1% to $813 million; pro forma EBITDA up 0.9% to $786 million.

• Return on invested capital increased 80 basis points to 6.2%.

• Cash CapEx for the half was $473 million, down 7.3% year-over-year; full-year guidance is $790 million.

• Service revenue reached $2,060 million, with gross margin at $1,320 million.

Outlook and guidance

• Pro forma EBITDA guidance for FY2025 is $1,605–$1,655 million, up 2% at midpoint from 2024.

• Cash CapEx guidance for FY2025 is $790 million, with a target of $750 million in FY2026 and $550–$650 million from FY2027.

• Dividend policy targets 18 cents per share for 2025, 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.