Shares in TPG Telecom were crushed when the telco announced its annual results.
The shares fell more than 23% to $9.30 as investors reacted to what they considered to be weak guidance for a rise in earnings of about 6% in the current financial year.
It was a reminder that share prices are also about future prospects as well as current results.
The company headed by billionaire David Teoh posted a massive 69% rise in full year profit to $379.6 million, 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. TPG also made $17.6 million profit on a part disposal of its interest in rival telecoms player Vocus.
Underlying net profit after tax grew by 46% to $361 million.
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.
Debt sits at $1.35 billion.
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%.