Overview
TPG Telecom Ltd, Australia’s second‑largest telecommunications operator, reported higher first‑half profit despite a slowdown in its fixed‑line broadband segment.
Financial Performance
The company recorded profit after tax from continuing operations of A$35 million for the six months ended 30 June 2026, representing a 9.4% increase over the A$32 million reported in the comparable period of the prior year. The uplift was attributed to lower financing costs, while the previous year had benefited from a one‑time tax advantage. Revenue from continuing operations declined 1% to A$2.425 billion from A$2.448 billion a year earlier. Earnings before interest, tax, depreciation and amortisation (EBITDA) rose 1% to A$821 million, up from A$813 million, driven by mobile service revenue growth and improved hardware margins that offset higher costs linked to new fibre access arrangements following the sale of TPG’s fibre network to Vocus Group.
Subscriber Metrics
Mobile subscriber numbers grew to 5.81 million by the end of June, up from 5.74 million at the end of 2025, supported by strong performance of the Digital First subscription brands and mobile virtual network operators. In contrast, home broadband subscribers fell to 1.94 million from 1.98 million as of end‑December, reflecting intensified competition in the NBN market.
Dividend Announcement
The board declared an interim dividend of 10.0 cents per share, fully franked at 25%, consistent with the payout ratio of the previous final dividend of 9.0 cents. The dividend is scheduled for payment on 29 September 2026, with a record date of 28 August 2026.
Operational Notes
TPG Telecom operates under the Vodafone, TPG, iiNet, felix and Lebara brands. The company’s higher profit was achieved despite ongoing losses in its fixed‑line broadband customer base and higher costs associated with new fibre access following the divestiture of its fibre network to Vocus Group.