TPG Telecom (TPG) Investor Presentation summary

Transaction highlights and capital management

• Completed sale of fibre and fixed assets, generating $4.7 billion in net cash proceeds from the Vocus Transaction.

• Proposed up to $3 billion cash distribution to shareholders via pro rata Capital Reduction, subject to approval.

• Reinvestment Plan of up to $688 million allows minority shareholders to increase ownership and boosts free float to about 30%.

• Targeting up to $2.4 billion in bank debt repayment, reducing drawn borrowings to $1.7 billion and leverage to 1.3x.

• Dividend policy targets 18 cents per share in FY25, with growth over time as profit and cash flow increase.

Financial performance and pro forma results

• Pro Forma FY24 revenue of $4,904 million, with EBITDA (guidance basis) at $1,600 million, up 6.1% year-on-year.

• Operating Free Cash Flow improved to $346 million in FY24, reflecting lower capex and reduced working capital needs.

• FY25 Pro Forma guidance: EBITDA of $1,605–$1,655 million and capex of approximately $790 million.

• Additional $100 million in opex reductions targeted over FY26–FY29, with capex expected to fall to $550–650 million from FY27.

• Leverage reduced by 35% over four years, with total external financing dropping from $6.9 billion to $4.5 billion.

Operational and trading update

• 1H25 saw strong mobile subscriber growth (+100k), with ARPU rising to $34.97 and postpaid port-ins up 48%.

• Fixed subscribers declined by 55k, but fixed AMPU increased to $26.11, supported by brand relaunch promotions.

• Regional network sharing drove market share gains outside Sydney and boosted data and voice traffic in rural areas.

• 1H25 Pro Forma revenue grew to $2,448 million, with EBITDA (guidance basis) at $786 million and operating free cash flow at $171 million.

• Marketing investment in 1H25 increased brand consideration and supported improved NBN volumes.