TPG Telecom reports solid half-year growth driven by 100,000 new mobile subscribers and strong cash flow, while unveiling a $3 billion capital return plan.
- 2.2% increase in service revenue to $2.06 billion
- 100,000 new mobile subscribers following regional network expansion
- EBITDA rises 1.0% to $813 million despite expansion costs
- Operating free cash flow up 23.6% to $246 million
- Announces $3 billion capital reduction and reinvestment plan
Strong Mobile Momentum
TPG Telecom has delivered a robust half-year performance for the six months ending June 30, 2025, with service revenue climbing 2.2% to $2.06 billion. This growth was largely fueled by the addition of 100,000 new mobile subscribers, a direct result of the company's regional network expansion earlier this year. The expansion has not only broadened coverage but also helped reduce customer churn, positioning TPG Telecom as a stronger competitor in both metropolitan and regional markets.
Average revenue per user (ARPU) also edged higher, reflecting improved customer engagement and pricing power despite ongoing market pressures.
Financial Performance and Operational Efficiency
EBITDA increased by 1.0% to $813 million, demonstrating disciplined cost control even as the company absorbed initial expenses related to the regional network infrastructure sharing agreement. Net profit after tax surged to $32 million, a significant improvement driven by higher earnings, stable depreciation, and reduced finance costs.
Operating free cash flow showed a notable 23.6% increase to $246 million, benefiting from lower capital expenditure and improved working capital management. This reflects TPG Telecom’s transition to a more capital-efficient operating model following the sale of its fibre and enterprise assets to Vocus.
Capital Management and Shareholder Returns
In a major strategic move, TPG Telecom announced a $3 billion pro rata cash distribution to shareholders, subject to approval at an upcoming extraordinary general meeting. Alongside this, a reinvestment plan offers minority shareholders the chance to maintain or increase their stake through discounted share purchases, aiming to preserve market liquidity and shareholder value.
The company has also recently repaid $1.7 billion in bank borrowings, reducing net debt and strengthening its balance sheet. This capital management strategy underscores TPG Telecom’s commitment to returning value to shareholders while maintaining financial flexibility for future growth.
Outlook and Strategic Focus
TPG Telecom reaffirmed its full-year guidance, expecting pro forma EBITDA between $1.605 billion and $1.655 billion and cash capital expenditure around $790 million. The company remains focused on expanding its mobile subscriber base, enhancing customer experience through digitisation, and maintaining cost discipline.
Additionally, TPG is investing in emerging technologies, including a low-earth-orbit satellite project aimed at improving coverage in remote areas, signaling a forward-looking approach to network innovation.
Bottom Line?
TPG Telecom’s transformation into a mobile-led, capital-efficient business sets the stage for sustained growth and significant shareholder returns.
Questions in the middle?
- How will competitors respond to TPG’s accelerated mobile growth and regional expansion?
- What will be the uptake and impact of the reinvestment plan on shareholder composition?
- Can TPG sustain margin improvements amid ongoing fixed broadband market pressures?