On 5th September, TPG released its FY19 results. Reported profits plunged 56% to A$174mn in FY19 from A$396mn in FY18, with majority of the drop driven a write down of its spectrum assets.

FY20 guidance indicates that TPG is preparing for further earnings pain with EBITDA expected to be in the A$735mn to A$750mn range, about 10% lower than FY19 EBITDA.

On 5th September, TPG announced its FY19 earnings update. Key highlights included:

• TPG’s FY19 results were significantly affected by the decision to cease the rollout of its Australian mobile network in January 2019. This move resulted in an impairment cost of A$236.8mn and a significant increase in amortisation and interest cost relating to TPG’s Australian spectrum licenses.
• FY19 results also included A$9.0mn of one-off transaction costs relating to TPG’s planned merger with Vodafone Australia (VHA).
• Underlying EBITDA (excluding the impairment and merger costs) for FY19 came in at A$818.4mn, a 1% decrease YoY.

Contents

Key takeaways

TPG FY19 earnings update

• Consumer
• Corporate
• Singapore business
• TPG-VHA merger

Our Take

List of charts/tables

Figure 1. FY19 TPG key financials (underlying, A$mn)

Figure 2. FY18 – FY19 BAU EBITDA impact

Figure 3. FY19 TPG financials by segment (reported, A$mn)

Figure 4. Consumer segment revenue (A$mn)

Figure 5.Corporate segment revenue (A$Amn)