Story image

TPG revenue, profit soars on back of iiNet acquisition

29 Sep 2016

TPG’s revenue has soared 88% on the back of its acquisition of iiNet, with the telco reporting revenue of $2.4 billion for the 2015-16 financial year.

Reported EBITDA was up 75% to $849.4 million, with net profit after tax of $379.6 million.

TPG acquired iiNet during the financial year in a $1.5 billion deal.

iiNet contributed $1.0 billion to the combined company’s revenue, with the broadband business contributing $704.5 million, fixed voice $204.1 million and mobile $54.6 million. ‘Other’ accounted for $95.7 million of iiNet’s contribution.

iiNet’s 983,000 broadband subscribers have helped bolster TPG’s broadband figures significantly, with broadband subscribers sitting at 1.8 million at the end of FY16.

TPG’s consumer revenue was up from $628.1 million to $674.3 million, with corporate TPG/AAPT revenue up from $642.5 million to $654.6 million.

TPG says the continued organic corporate EBITDA growth of $27.0 million – or 11% – was driven by strong sales and continued margin expansion, and comes despite a $10.1 million adverse accounting impact from consolidating iiNet.

Lower access costs courtesy of the ACCC’s fixed line services final access determination, combined with strong organic growth which saw broadband subscriber numbers up 64,000 in the year, drove TPG’s consumer division EBITDA up from $239.7 million to $255.7 million.

The division ended the year with 885,000 broadband subscribers and 304,000 mobile subscribers.

TPG’s average revenue per user for NBN and on net ADSL and home phone bundles dropped slightly in the second half of 2016 – from $67.4 a month to $67.2 and $59.1 to $58.7, respectively, while on net ADSL and off net ADSL ARPU were up at $40.1 a month and $56.7/month respectively.

iiNet’s offerings meanwhile saw a drop for fixed phone ARPU, with NBN, on net ADSL and off net ADSL all increasing.

The company is looking to broaden its reach, and has lodged an expression of interest to bid for up to 75Mhz of spectrum in Singapore.

“If successful, we will quicly move to establishing a substantial Singapore operation with strong local management and mobile expertise,” TPG says.

Earlier this year the company was forced to issue a statement to the ASX declaring it wasn’t in discussions with Kiwi telco 2degrees or its representatives, as rumours swirled that a TPG was gearing up to acquire the telco.

Bitglass appoints new cloud, business development leaders
The cloud security company has appointed vice presidents for worldwide channels and worldwide business development.
Ping Identity offerings accelerates cloud MFA and SSO adoption
90% of respondents trust MFA as an effective security control to protect identity data in public clouds, yet only 60% of organisations have formally adopted it.
Ingram launches CRM backup on cloud marketplace
AvePoint Cloud Backup for Dynamics 365 is a multi-tenant solution, designed with specific features to enable channel partners and MSPs.
Trend Micro introduces cloud and container workload security offering
Container security capabilities added to Trend Micro Deep Security have elevated protection across the DevOps lifecycle and runtime stack.
Veeam joins the ranks of $1bil-revenue software companies
It’s also marked a milestone of 350,000 customers and outlined how it will begin the next stage of its growth.
Veeam enables secondary storage solutions with technology partner program
Veeam has worked with its strategic technology alliance partners to provide flexible deployment options for customers that have continually led to tighter levels of integration.
Veeam Availability Orchestrator update aims to democratise DR
The ability to automatically test, document and reliably recover entire sites, as well as individual workloads from backups in a completely orchestrated way lowers the total cost of ownership (TCO) of DR.
Nuix eyes legal sector as eDiscovery demand skyrockets
eDiscovery must encompass so much more than email and documents. If you haven’t looked at text messages and online chats, digital images, mobile devices, data in the cloud and social media, you’re not getting the whole story.