Billionaire David Teoh’s TPG Telecom just posted a massive 69% rise in full year profit to $379.6 million.
The company’s shares were hammered in early trade because investors didn’t like the latest guidance for 2017. A short time ago, they were down more than 15% to $$9.96.
The result was boosted by the $1.56 billion takeover of iiNet which made TPG the second largest fixed line internet provider in Australia.
Revenue was up 88% to $2.388 billion.
The company also made $17.6 million profit on a part disposal of its interest in rival telecoms player Vocus.
Excluding irregular items, underlying EBITDA (earnings before interest, taxes, depreciation, and amortisation) for the year was up by 60% to $775.3 million, including a maiden contribution from iiNet of $248.9 million in just over 11 months since the acquisition.
The 2017 guidance was set at an underlying EBITDA in the range of $820 million to $830 million, a rise of 6% or better.
The company declared a fully franked final dividend of 7.5 cents a share, bringing the total full year payout to 14.5 cents, an increase of 26%.
Earlier this month TPG announced a bid for Singapore’s fourth mobile phone licence.
A summary of the results:
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