TPG Telecom has delivered a strong performance for FY24, with financial results aligning with expectations while making major strategic moves to reshape its business for future growth.
Key financials:
- Service revenue rose 1.5% to $4.7 billion, with mobile service revenue up 5.4%.
- EBITDA (excluding one-offs) climbed 3.4% to $1.99 billion, landing in the middle of guidance.
- Operating free cash flow (OFCF) surged by $474 million to $672 million, thanks to lower capex and improved working capital.
- Return on invested capital (ROIC) improved 40 basis points to 6.1%.
- Final dividend of 9.0 cents per share, bringing full-year dividends to 18.0 cents per share.
Expanding Mobile Reach and Strategic Simplification
CEO Iñaki Berroeta highlighted that FY24 was a pivotal year, with TPG doubling its mobile network coverage through the landmark regional sharing agreement with Optus. This move, activated in January 2025, now sees TPG covering 98.4% of the Australian population, with 89.7% 5G coverage—a game-changer for expanding mobile market share.
Customers have responded positively, with strong subscriber growth and increased data traffic since the launch. At the same time, TPG continued simplifying its operations, slashing the number of customer plans from 3,700 to 1,145, with a goal of around 100 in total.
A Leaner, More Focused Business Model
One of the year’s biggest moves was the sale of TPG’s fibre infrastructure and Enterprise, Government & Wholesale (EGW) Fixed business to Vocus for $5.25 billion. This deal, currently awaiting regulatory approval, is set to transform TPG into a leaner, mobile-first telco with a more capital-efficient structure.
Berroeta explained that the transaction will allow TPG to grow its mobile and home internet market share without increasing fixed network costs, while also cutting annual capex to $550-$650 million and reducing operating costs by an additional $100 million. This, in turn, should boost EBITDA margins, free cash flow, and return on capital, making the company stronger for the long haul.
FY25 Outlook
Looking ahead, TPG expects stable EBITDA between $1.95 billion and $2.025 billion, reflecting the impact of regional network sharing costs before revenue benefits fully kick in. Capital expenditure (excluding spectrum) is set at around $900 million.
An investor day is planned for later in 2025, where TPG will share more details on its post-sale strategy and capital management plans.
The Bottom Line
TPG is making bold moves—expanding its mobile footprint, simplifying operations, and offloading non-core assets to become a leaner, more profitable telco. With a stronger balance sheet and a clearer focus, the company is positioning itself for long-term growth and shareholder value creation.
