TPG Telecom (TPG) Investor Day 2026 summary

Strategic direction and market positioning

• Maintains a challenger mindset, focusing on lean operations, customer-centricity, and capital discipline to drive growth and efficiency in a traditionally incumbent-dominated industry.

• Strategy centers on network expansion, brand invigoration, digital-first experiences, and operational simplicity, with a renewed focus on building customer trust and supporting vibrant, connected communities.

• Multi-brand approach targets premium, digital-first, and value segments, leveraging differentiated brands and network partnerships to capture diverse market needs.

• Post-merger transformation included IT modernization, 5G rollout, and asset sales, resulting in a leaner, mobile-first business with a strong capital position.

• Sustainability and reconciliation initiatives are embedded, with ongoing engagement with Indigenous communities and environmental programs like Felix’s tree planting.

Financial outlook and guidance

• FY26 EBITDA guidance of AUD 1.665–1.735 billion and CapEx guidance of around AUD 750 million are reaffirmed, with CapEx expected to decline to AUD 550–650 million from FY27 as 5G and IT investments taper.

• FY25 saw 4.2% Mobile Service Revenue growth, 33.6% EBITDA margin, and $1,137m operating free cash flow; capex reduced to 18.4% of service revenue.

• Operating leverage and digitization are expected to deliver AUD 100 million in OpEx savings by FY29 (pre-inflation), supporting margin expansion and cash flow growth.

• Debt reduction of AUD 2.7 billion in FY25 has improved the balance sheet, halved borrowing costs, and secured a BBB credit rating, with no bank debt maturities until FY28.

• Dividend policy aims for sustainable increases aligned with profit and cash flow growth, maintaining a current yield of about 5.1% and targeting increased franking as profits rise.

Business developments and growth engines

• Vodafone Business is positioned for B2B growth, leveraging improved network coverage, digital-first and AI-powered service models, and a focus on mobile and adjacent services (IoT, private networks).

• Wholesale is a key growth area, targeting MVNOs, new brand entrants, and emerging use cases like connected cars and wearables, with recent wins including Lyca Mobile and ZMobile.

• Value brands forecast to add ~1.5m services by FY29, with digital subscription brands driving profitable growth and lower cost-to-serve.

• Fixed wireless and high-speed NBN segments present further margin and growth opportunities, with new standalone 5G products expanding the addressable market.

• AI and advanced analytics are being deployed to proactively manage customer experience, reduce churn, and enable operational efficiencies, with live use cases in both mobile and fixed broadband.