TPG FY19 update – there’s a lot riding on the merger…

On 5th September, TPG released its FY19 results. Reported profits plunged 56% to A$174mn in FY19 from A$396mn in FY18, with majority of the drop driven a write down of its spectrum assets.

FY20 guidance indicates that TPG is preparing for further earnings pain with EBITDA expected to be in the A$735mn to A$750mn range, about 10% lower than FY19 EBITDA.

Corporate segment revenue (A$mn)

On 5th September, TPG announced its FY19 earnings update. Key highlights included:

  • TPG’s FY19 results were significantly affected by the decision to cease the rollout of its Australian mobile network in January 2019. This move resulted in an impairment cost of A$236.8mn and a significant increase in amortisation and interest cost relating to TPG’s Australian spectrum licenses.

  • FY19 results also included A$9.0mn of one-off transaction costs relating to TPG’s planned merger with Vodafone Australia (VHA).

  • Underlying EBITDA (excluding the impairment and merger costs) for FY19 came in at A$818.4mn, a 1% decrease YoY.

“This article is an extract of a report published by our sister company Venture Insights. To enquire about becoming a subscriber, please contact Nigel Pugh.”