TPG Telecom profit beats expectations, its shares jump

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Growth in broadband has pushed billionaire David Teoh’s TPG Telecom to a 11% rise in half-year net profit after tax to $224 million.

The half-year result, which beat market expectations, was on an 8% rise in revenue to $1.24 billion.

A short time ago, TPG shares were up 5.9% to $7.01. The shares have been falling since September on weaker guidance.

TPG is now the second largest fixed line internet provider in Australia following the $1.56 billion takeover of iiNet.

The latest results show broadband revenue at $326.8 million for iiNet and $118.6 million for TPG for the six months.

Broadband subscribers have reached 1.91 million, as this chart shows:

Source: TPG Telecom

The telco declared an interim fully franked dividend of 8 cents a share, a 14% increase.

The company reaffirmed its guidance for full year underlying EBITDA (earnings before interest, tax, depreciation and amortisation) in the range of $820 million-$830 million.