TPG Telecom Reports 90% Decline in Annual Profit

Overview

TPG Telecom, an Australian provider of telecommunications services, announced a 90% decline in its statutory annual profit. Despite this significant drop, the company decided to maintain its final dividend as it navigates through challenging times.

Financial Performance

In the 12 months ending in December, TPG Telecom recorded a net profit of 49 million Australian dollars, a stark contrast from the A$513 million reported in the previous year. The decline can be attributed to the absence of one-off gains from the sale of mobile towers. However, the company's revenue saw a modest increase of 2% to reach A$5.53 billion.

Earnings Before Interest, Tax, Depreciation, and Amortization

Earnings before interest, tax, depreciation, and amortization (EBITDA) decreased by 12% to A$1.875 billion, after excluding extraordinary items such as the A$402 million accounting gain from the tower sale in 2022. Despite the fall in profit, TPG Telecom's performance was in line with the average analyst forecast of A$1.92 billion in EBITDA from revenue of A$5.57 billion.

Dividend Declaration

Following the merger of Vodafone Hutchison Australia and broadband provider TPG in 2020, TPG Telecom declared a dividend of A$0.09.

For more updates on TPG Telecom, stay tuned for further financial reports and announcements.