TPG books profit fall, but lifts guidance

TPG Telecom has booked an 11.3 per cent fall in first-half profit, compared to a year ago when it was boosted by the sale of an investment, but the company remains optimistic and upgraded its full-year earnings guidance.

The internet provider posted a $198.7 million net profit in the six months to January 31, down from $224 million a year ago when it benefited from $55.8 million in non-recurring items.

TPG upgraded its full-year underlying earning guidance.
Photo: Rob Homer

But underlying profit, which accounts for the previous year's cash benefit, increased five per cent to $217.7 million, compared to $207.5 million a year ago.

Underlying earnings also rose slightly from $417.6 million to $418.2 million, and revenue grew to $1.3 billion, from $1.2 billion.

TPG's consumer division fell compared to a year ago when the company included a $7 million one-off revenue.

The fall was driven by broadband margin erosion and loss of home phone voice revenue on the back of the national broadband network rollout, TPG said on Tuesday.

But the company's corporate segment's earnings rose to $158.9 million from $157.2 million a year ago, on the back of continued strong data and internet sales offsetting ongoing declines in voice revenues.

TPG cut its fully franked interim dividend to two cents, down from eight cents a year ago but the telco upgraded its full-year underlying earning guidance to between $825 million and $830 million, from between $800 million and $815 million previously.

AAP