TPG
TPG result is out.
Looks like a slight beat for TPG, given ’22 EBITDA consensus at $1.744bn vs $1.793bn actual.
Guidance at mid point of $1.9bn slightly ahead of street at $1.88bn for ’23.
But, it’s clear the operational momentum of the business has returned.
Recall that TPG got hit hard from the pandemic, with the Vodafone business being one that resonates (is well known) with international travellers who now were not coming, thanks to closed borders. Those borders are now back open, and travellers are returning.
Tiny but positive increases to ARPU’s, over the period; $42.7 mobile post-paid, now, up from the below of $42 in the pcp, prepaid goes from $19 to $19.6.
They didn’t put through notable price hikes until quite recently, lagging Telstra and Optus.
The simplified plan structure has $45 at the low end in the Jan refresh, so, with any luck, TPG has proved the low’s were in 18 months ago, and it’s back to more normalised conditions of decent growth in a more rational industry.
The key is really the firm return to subscriber growth, 300K over 22.
Fixed wireless also looking pretty good, doubling from the pcp.
Broadband AMPU (average margin per user) also looking much better.
So, subscriber growth up, pricing up, debt down (through the asset sales), things looking quite a bit better now.
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