TPG 1H19 – Business sector to be a key focus as NBN erodes Consumer

TPG pivots toward corporate fibre and business services as NBN pricing makes entry-level consumer plans unsustainable.

Yifei Huang · Venture Insights19 March 2019Period: 1H FY198 min read

Last updated 10 June 2026

A$46.9mn↓

TPG Reported Net Profit After Tax (1H19)

48%↑

Corporate Segment EBITDA Margin (1H19)

Locked

+2more stats

Companies covered:TPGVHANBNTelstraOptusVocusiiNetAAPTHuawei

Abstract

This report analyses TPG's 1H19 financial results, highlighting a significant profit decline to A$46.9mn from A$198.6mn in 1HY18. The downturn is primarily attributed to a A$227.4mn write-down of mobile network assets following the decision to cease its small cell rollout. While consumer revenues fell by A$28mn, the corporate segment showed resilience with a 48% EBITDA margin, signaling a strategic shift toward high-margin business fibre and Data/Internet services to offset NBN-driven margin compression in the residential market.

Key Takeaways

TPG reported a 79.4% drop in NPAT to A$46.9mn, primarily due to a A$227.4mn write-down of its mobile network assets.
Corporate EBITDA margins expanded to 48%, driven by high-margin fibre contracts and a A$24.1mn increase in Data/Internet revenue.
Consumer revenue fell by A$28mn to A$852.6mn as NBN wholesale costs compressed margins and fixed voice profits declined by 37%.

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Frequently Asked Questions

The 79.4% decline in NPAT to A$46.9mn is primarily the result of a A$227.4mn impairment charge. This write-down stems from the strategic decision to cease the mobile network rollout following the announced merger with VHA.

The corporate segment is now a critical profit engine, delivering a high 48% EBITDA margin and a A$24.1mn increase in Data and Internet revenue. This performance contrasts sharply with the consumer division, where revenue fell by A$28mn due to NBN-related margin compression.

Management is actively considering the withdrawal of its A$60 entry-level NBN plan because current CVC pricing makes the product unsustainable. This shift is necessary to protect margins as fixed voice profits have already collapsed by 37%.

The Singapore rollout is meeting technical benchmarks, achieving 99.18% outdoor coverage across the city-state. The commercial trial has successfully scaled to 200,000 users, providing a solid foundation for full market entry.

TPG 1H19 – Business sector to be a key focus as NBN erodes Consumer

Abstract

Key Takeaways

Frequently Asked Questions

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