iiNet purchase helps TPG boost 1H16 profit by 90%

22 Mar 2016
00:00

Australian fixed-line operator TPG Telecom has reported a 90% surge in net profit for the half year ended in January, thanks largely to gains associated with its acquisition of rival iiNet.

Profit for the period grew to A$202.4 million ($153.2 million). TPG's bottom line was lifted by a A$73.1 million gain on the group's previously held stake in iiNet, as well as an A$9.7 million profit from a disposal on part of its stake in fiber network operator Vocus Communications.

But even excluding irregular items, underlying ebitda grew 56% to A$368.8 million, with iiNet contributing ebitda of A$107.1 million for the five months post acquisition.

As of the end of January, TPG's consumer division had 853,000 broadband subscribers and 297,000 customers of its MVNO TPG Mobile, while iiNet had 989,000 broadband customers.

TPG's corporate division meanwhile recorded ebitda for the period of A$131.9 million, up from A$117.7 million in the same period a year earlier.

The company is forecasting underlying ebitda for its full financial year ending in July of between A$770 million and A$775 million.

TPG agreed in March last yearto buy iiNet in a deal that valued the ISP at around A$1.4 billion.

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