Shares in TPG Telecom (TPM) slipped more than 4% yesterday after the group (which is part of the Washington Soul Pattinson/Brickworks group of companies) reported a 31% jump in net profit to $224.1 million the year to July 2015.
The result slightly missed analyst forecasts but beat the company’s own earlier guidance.
And yet the shares fell 4.6% to $10 because there was no outlook statement issued, or guidance to take account of the impact of the recent controversial takeover of iiNet.
TPM 1Y – iiNet ingestion clouds TPG outlook
Executive chairman David Teoh said the company expected continued organic growth in fiscal 2016, but warned it was not possible to “forecast with sufficient certainty” financial results, given the recent completion of the iiNet acquisition.
As a result, no specific guidance was provided for fiscal 2016.
The $1.56 billion iiNet acquisition was completed on September 7, well after the end of the July balance date.
Revenue during the year ending July 30, 2015 rose to $1.27 billion – up 31%.
Earnings before interest, tax, depreciation and amortisation climbed 33% to A$484.5 million, slightly ahead of increased guidance for ebitda of up to A$483 million from the company in March.
TPG said it would pay a final dividend of 6 cents a share for a full-year payout of 11.5 cents, up 24% on last year.
The company said it lifted the number of broadband customers to 821,000, including 42,000 on the NBN.
When combined with iiNet’s 988,000 subscribers as of June, this gives TPG a combined total of 1.809 million users and makes it Australia’s second biggest supplier of fixed-line broadband services.
