Shares in TPG Telecom jumped higher after the telco confirmed the business was tracking against guidance.
A short time ago, the shares were up 8% to $7.29 but still well below a high of $12.90 in September.
At the company’s AGM today, shareholders were told year-to-date results were tracking well against forecasts.
The company expects underlying EBITDA (earnings before interest, tax, depreciation and amortisation) to be between $820 million and $830 million, a rise of about 6%. It was this guidance, seen as weak in the market, that sent shares lower in September.
Billionaire David Teoh, the executive chairman, acknowledged concerns at the decline in the share price as well as commentary on the margin headwinds the business is facing as it transitions to the NBN.
“However, we have ahead of us numerous exciting opportunities to consider and strategies to implement using our extensive infrastructure assets and other strengths which I am confident will continue to create excellent value for our shareholders over the long term,” he says.
The company in September 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.