TPG TELECOM LIMITED (ASX: TPM) FINANCIAL RESULTS COMMENTARY HALF YEAR ENDED 31 JANUARY 2012
TPG Telecom reports 65% increase in half year earnings
- EBITDA up 17%
- EPS up 61%
- 7th consecutive half year of earnings growth
TPG Telecom Limited has today announced its financial results
for the half year ended 31
January 2012 ("1H12"), which include Net Profit After Tax
("NPAT") of $55.7m, an increase over 1H11 of 65%.
Earnings before interest, tax, depreciation and amortisation
("EBITDA") for the half year increased by 17% to $131.9m,
leaving the Group well positioned to achieve its EBITDA
guidance range for the full year of $250m-$260m.
Earnings per share ("EPS") increased by 61% to 7.1 cents per
share. EPS, excluding the impact of intangible amortisation
expense, was 8.7 cents per share.
These strong results represent the Group's 7th
consecutive half year of growth in reported
EBITDA, NPAT, and EPS.
Consumer business
Organic subscriber growth in the Group's consumer broadband
business has continued to be driven by TPG's award winning
ADLS2+ with Home Phone bundle plans, which grew by 49,000
bundle subscribers during the half year. The increase in
bundle subscribers was partially offset by a decline in
standalone on-net (23,000) and off-net (7,000) subscribers,
such that the total net increase in TPG's consumer broadband
subscribers for the 6 months was 19,000.
63-65 Waterloo Road
Macquarie Park, NSW 2113
T: (02) 9850 0800
F: (02) 9888 9148 www.tpg.com.auABN: 46 093 058 069
TPG Telecom Limited
Since launching its Super Value Mobile Plans with unlimited
calls to TPG Mobiles and Home Phone in September 2011, TPG's
mobile business has shown increased momentum, achieving a net
growth of 21,000 mobile subscribers in the 6 months, taking
its total mobile subscriber numbers to 222,000.
Corporate business
During the half year the Group created a Corporate division
comprising the corporate, government and wholesale businesses
of TPG, Soul, and PIPE. Each of these businesses is adopting
PIPE as its brand. The Corporate division has delivered
excellent first half results, providing 44% of the Group's
total EBITDA.
The fibre network expansion continues with an additional
417km installed during the half, representing a 26% increase
over 31 July 2011, to a total of 2,264km.
Cashflow
The Group's cashflow for the period was also very strong;
$146.6m cash was generated from operations (pre-tax). After
tax, interest and capital expenditure, the Group had free
cash flow of $76.6m.
The free cashflow enabled the Group to repay $26m of debt in
the period, as well as to fund the acquisition of an
established cloud business and to purchase shares in
iiNet.
The Group re-financed its debt facility during the half year,
securing improved pricing and extending the term of the
facility to March 2015. The amended facility has a limit of
$300m (in addition to a $20m working capital facility) of
which $103m is currently undrawn. The Group's debt to annual
EBITDA leverage ratio has now been reduced to less than 0.8
times with $126m of debt having been repaid in the 18 months
to January 2012.
Dividend
In light of the strength of the Group's cashflows and
earnings growth, the Board of Directors has also declared an
increase in the interim FY12 dividend by 22% to 2.75 cents
per share (fully franked), payable on 22 May 2012 to
shareholders on the register at 17 April 2012. The directors
have decided to suspend the Dividend Reinvestment Plan (DRP)
until further notice and, accordingly, the DRP will not apply
to this dividend.
David Teoh
Executive Chairman
20 March 2012
63-65 Waterloo Road
Macquarie Park, NSW 2113
T: (02) 9850 0800
F: (02) 9888 9148 www.tpg.com.auABN: 46 093 058 069
TPG Telecom Limited
distributed by | This press release was issued by TPG Telecom Limited and was initially posted at http://www.tpg.com.au/about/pdfs/HY12Announcementv6FINAL.pdf . It was distributed, unedited and unaltered, by noodls on 2012-03-20 02:11:27 AM. The issuer is solely responsible for the accuracy of the information contained therein. |