Global travel restrictions hit TPG Telecom earnings
TPG Telecom's revenue fell 12 per cent in the last six months as global travel restrictions and retail store closures linked to the coronavirus pandemic led to reduced roaming, prepaid and postpaid connections.
The telecom group, which was formed in the merger of TPG Corporation and Vodafone Hutchison Australia, reported revenue of $1.5 billion for the half year and a nine per cent fall in earnings before interest, tax, depreciation and amortisation to $531 million.
TPG Telecom chief executive Iñaki Berroeta said the pandemic had a particularly bad impact on the mobile sector.Credit:Renee Nowytarger
The results include six months of Vodafone Hutchison Australia and four days worth of income from TPG Corporation. TPG Corporation contributed $27 million to revenue in the four days and $9 million to EBITDA.
But the company reported a net profit of $83 million compared to $153 million for the same period the previous year.
TPG Telecom chief executive Iñaki Berroeta said the pandemic had a particularly bad impact on the mobile sector.
"We simultaneously supported our customers to help keep them connected through COVID, moderated the financial impacts of the pandemic on our own business, completed the merger and commenced our 5G rollout after an 18-month delay due to the vendor restrictions," Mr Berroeta said.
"While our results reflect a negative impact from COVID on the mobile sector, they also demonstrate the relative resilience of the industry and our capacity to continue to deliver the essential services which our customers rely on."
Postpaid mobile customers fell by 2 per cent to 3.4 million in the half, while the amount of prepaid customers fell 10 per cent to 1.8 million. Vodafone said this was due to a reduction in international visitors, which were key customers for the telco.
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