TPG upgrades EBITDA guidance
TPG Telecom Limited (TPM) upgraded its FY10 EBITDA guidance from $140 million – $150 million to $152 million – $158 million. The company also announced group EBITDA of $77.1 million and a net profit after tax of $27.5 million for the half year ended 31 January 2010.
TPG Telecom said the results represent a 34% increase on the EBITDA achieved in the corresponding period and a 443% increase on the NPAT achieved for the same period.
The company reported earnings per share of 3.8 cents for the six-month period.
TPG Telecom said broadband subscriber growth has continued strongly, with net additions of 54,000 in the six months to 31 January 2010, 48,000 of which were on-net, and subscribers totaling 460,000 at March 2010.
The company said it had accumulated cash reserves of $47.2 million, after paying $17.6 million in the half year to subscribe for 2.8 million shares in Pipe Networks Limited.
“These cash reserves will be used, together with the $66.2m raised through the institutional placement and share purchase plan conducted in February, and the new debt facility signed in March, to fund the acquisition of 100% of the remaining shares in Pipe under the scheme of arrangement approved on 17 March and payable on 31 March 2010,” TPG said.
The acquisition of Pipe Networks became effective on 17 March 2010 after being unanimously supported by Pipe’s board and 94% of the company’s shareholders.
TPG Telecom declared a fully franked interim dividend of 2c per share.
At the close of trade Monday, TPG Telecom shares were trading at $2.12.
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