TPG Telecom (TPG) H2 2025 earnings summary

Executive summary

• FY25 was a transformational year, highlighted by regional network sharing, sale of fiber infrastructure and EGW Fixed operations, and significant capital management initiatives, strengthening the financial position.

• Achieved strongest mobile subscriber growth since 2022, with digital-first brands driving market share gains and ARPU growth.

• Cash flow and ROIC momentum increased due to cost control, investment cycle completion, and debt reduction.

• Strategy focuses on smarter networks, invigorated brands, simplified customer experience, and operational efficiency.

• Customer wellbeing initiatives expanded, focusing on vulnerable customers and accessibility.

Financial highlights

• Service revenue up 2.2% year-over-year to AUD 4.179 billion; mobile service revenue up 4.2% to AUD 2.423 billion.

• EBITDA (pro forma, excluding one-offs) up 2% to AUD 1.637 billion; reported EBITDA up 18.4% to AUD 1.66 billion.

• Operating free cash flow nearly doubled to AUD 1.291 billion; free cash flow to equity surged to AUD 5.751 billion.

• Ordinary dividends declared at AUD 0.18 per share, with total dividends (including special) at AUD 0.27 per share, 30% franked.

• ROIC (pro forma) improved by 0.66 ppt to 5.42%.

Outlook and guidance

• FY26 EBITDA guidance: AUD 1.665–1.735 billion, with capex expected at AUD 750 million.

• CapEx expected to reduce further from 2027 onward; free cash flow to equity targeted at AUD 600 million by FY27.

• Dividend growth expected to continue, supported by strong balance sheet and cash flow.

• Continued focus on organic cash flow generation and further deleveraging.

• Plan to refinance AUD 1.67 billion of bank debt maturing in July 2028.