Half Year 2024 TPG Telecom Ltd Earnings Call Transcript
Key Points
- Mobile service revenue increased by 7.2%, driven by higher consumption and recent network investments.
- Fixed broadband AMPU increased by 6.3%, with strong growth in fixed wireless offsetting competition in the NBN market.
- Successful migration of Lyca Mobile to TPG's network, marking a significant MVNO contract win.
- Operating EBITDA is sustainably growing, with working capital moving favorably and CapEx past peak levels.
- Continued progress in strategic initiatives, including a proposed regional sharing agreement with Optus and business simplification programs.
- Inflation impacts remain challenging, leading to the removal of approximately 120 roles to deliver operational efficiencies.
- Slower mobile subscriber growth attributed to lower international arrivals and aggressive handset discounting by competitors.
- Depreciation and amortization costs are increasing, impacting earnings per share.
- NBN market remains highly competitive, with new entrants growing at low margins through aggressive promotions.
- Enterprise, government, and wholesale segments face challenging market conditions, impacting overall performance.
This is Bruce Song speaking from the TPG Telecom Investor Relations team. Thank you for joining us for the presentation of our 2024 half year results. TPG Telecom acknowledges the Traditional Custodians of country throughout Australia and the lands on which we and our communities live, work, and connect. We pay our respects to their elders past and present.
The agenda for today is as follows: our CEO and Managing Director, Iñaki Berroeta will present the results highlights and our business update. Our CFO, John Boniciolli, will then discuss our financial performance in more detail, and Iñaki will then discuss our outlook before we turn to Q&A.
Thank you, Bruce, and welcome to everyone joining the call. Our first half results reflect solid trading and a strong cash performance. In the second half, we are increasing our focus on cost efficiency and expect to deliver important steps in our strategy.
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