TPG Telecom reported a 4.5% increase in pro forma EBITDA for the first half of 2026, driven by mobile service revenue growth and disciplined cost management. The company’s H1 EBITDA reached AUD 832.5 million, up from AUD 800 million in the same period last year, while service revenue edged up 0.5% to AUD 1.56 billion. Mobile service revenue grew 3.1%, offsetting declines in fixed broadband and NBN segments.
Operating costs remained flat at AUD 508 million despite a 3.6% inflation rate, reflecting efficiency gains. Free cash flow to equity surged to AUD 93 million, a AUD 108 million increase year-over-year, while operating free cash flow rose more than 16%. The interim dividend was raised to AUD 0.10 per share, up from AUD 0.09, with franking reduced to 25%. The stock last traded 4.25% higher at AUD 3.68.
Management guided full-year 2026 EBITDA to AUD 1.665-1.735 billion, implying growth of nearly 4% on a pro forma basis. Free cash flow for FY 2026 is expected in the range of AUD 400-500 million, with CapEx projected at about AUD 750 million. Debt to EBITDA improved to 2.9 times from 3.0 times at the end of 2025, with a target below 2.75 times. Net financing costs are anticipated to fall by more than AUD 100 million compared with FY 2025.
Mobile subscriber additions totaled 64,000 in the half, while NBN customer declines slowed. Fixed wireless addressable market expanded by 15% following the launch of 5G standalone services. The company also accelerated its cost-reduction program, achieving AUD 46 million of its AUD 100 million target by FY 2029. Gross margin improved 2.9% overall and 4.2% in mobile.
CEO Iñaki Berroeta highlighted progress in network expansion and customer proposition refinement, stating the company remains confident in both near-term momentum and long-term value creation. CFO John Hurley emphasized strong cash generation, noting recurring cash flow has become materially higher. The company also initiated refinancing for bank debt maturing in July 2028.
