TPG FY profit slumps 56% on mobile costs

TPG Telecom’s full-year profit has slumped 56.1 per cent to $173.8 million after the internet provider copped a $196.1 million hit from scrapping its planned mobile network.

Revenue for 12 months to July 31 edged 0.7 per cent lower to $2.48 billion as Australian customers migrated to NBN services, and the bottom line was further hit by $6.3 million of costs related to its stalled merger attempt with Vodafone Australia.

The Federal Court this month will hear an appeal by TPG and Vodafone against the competition watchdog’s decision to block the $15 billion merger.

Stripping out the one-off hits, underlying profit slipped 12.9 per cent to $376.2 million and the company held its final dividend at a fully franked 2.0 cents.

Earnings of $824 million narrowly beat full-year guidance of $800 million to $820 million, but TPG said that would likely slip to between $735 million and $750 million in FY20 as NBN headwinds hit a peak.

AAP

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