TPG share price takes off as full-year profit soars 350%

The telco posted more than $4 billion of revenue for 2022.

| More on:
A cool young man walking in a laneway holding a takeaway coffee in one hand and his phone in the other reacts with surprise as he reads the latest news on his mobile phone

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Key points

  • The TPG share price is lifting 2% right now to trade at $4.825 
  • Its gains follow the release of the company's full-year earnings, in which it declared a 9 cent per share dividend
  • It also posted a 350% jump in profits and $4.4 billion in revenue

The TPG Telecom Ltd (ASX: TPG) share price is in the green on Monday after the company released its full-year earnings.

Shares in the S&P/ASX 200 Index (ASX: XJO) telecommunications provider are currently up 2.22%, trading at $4.825.

TPG share price launches as earnings and dividend bolstered

Here are the key takeaways from the telco's 2022 earnings:

What else happened in 2022?

TPG saw plenty of growth last half, welcoming 300,000 new mobile subscribers – ending the year with 5.28 billion mobile customers – and continuing its 5G rollout faster than expected.

Its average revenue per user also grew 1.9% to $32.40 a month, boosted by higher international roaming levels.

TPG Telecom boasted 2.22 million of fixed customer subscribers at the end of 2022 – flat with the prior year, while its fixed wireless subscribers more than doubled to 171,000.

Looking at its enterprise, government, and wholesale leg, major customer wins included Hungry Jacks, Lifeline, and Freedom Furniture. It booked more than $150 million of total contract value in 2022.

It also delivered $140 million of annualised cost synergies from the 2020 merger of Vodafone Hutchinson Australia and TPG Corporation, offsetting inflationary pressures.

What did management say?

TPG CEO and managing director Iñaki Berroeta commented on the results driving the company's share price today, saying:

These results reflect solid execution of our strategy as we benefited from renewed customer activity throughout 2022. The operational and strategic foundations we have put in place are translating to an improving financial performance, which we expect to gather momentum through 2023.

The ACCC decision not to authorise [a proposed] network sharing agreement was a significant loss for regional Australia and for consumers and businesses. TPG Telecom and Telstra Group Ltd (ASX: TLS) are challenging the decision through the Australian Competition Tribunal.

What's next?

TPG expects to post between $1.85 billion and $1.95 billion of EBITDA for financial year 2023.

That assumes no material change in operating conditions and excludes material one-offs and transformation costs.

TPG share price snapshot

Sadly, today's gains haven't yet proven enough to push the stock back into the longer-term green.

The TPG share price has risen 1% since the start of 2023. Though, it's down 12% over the last 12 months.

For comparison, the ASX 200 has gained 4% year to date and 3% over the last 12 months.

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Telstra Group. The Motley Fool Australia has recommended Tpg Telecom. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Earnings Results

Doctor doing a telemedicine using laptop at a medical clinic
Earnings Results

Polynovo share price surges after 57% revenue gain in FY24

Global sales continue to grow for Polynovo.

Read more »

two men in hard hats and high visibility jackets look together at a laptop screen that one of the men in holding at a mine site.
Earnings Results

Paladin Energy share price in focus on quarterly production data

The uranium producer had a reasonably constructive quarter.

Read more »

Two happy excited friends in euphoria mood after winning in a bet with a smartphone in hand.
Earnings Results

ASX 200 stock jumps 10% on strong FY24 results

How did this KFC restaurant operator perform in FY 2024?

Read more »

A male investor wearing a white shirt and blue suit jacket sits at his desk looking at his laptop with his hands to his chin, waiting in anticipation.
Consumer Staples & Discretionary Shares

Guess which ASX 200 stock just slashed its final dividend by 23%

This retailer had a tough time during the 12 months. Here's how it performed.

Read more »

Man jumps for joy in front of a background of a rising stocks graphic.
Earnings Results

Catapult shines: 20% sales growth propels ASX tech stock to new 52-week high

A strong annual result from this tech player has caught investor attention.

Read more »

A man in his 30s holds his laptop and operates it with his other hand as he has a look of pleasant surprise on his face as though he is learning something new or finding hidden value in something on the screen.
Earnings Results

Xero share price leaps 8% on staggering earnings upheaval

A major turnaround in profitability is sending investors into a frenzy over Xero shares today.

Read more »

a construction worker sits pensively at his desk with his arm propping up his chin as he looks at his laptop computer while wearing a hard hat and visibility vest in a bunker style construction shed.
Materials Shares

Which ASX 200 stock just plunged 12% despite record full-year earnings?

It looks like an impressive report card but UBS doesn't like the FY25 guidance.

Read more »

A man sits thoughtfully on the couch with a laptop on his lap.
Earnings Results

ASX 200 tech stock lifts off on another record-setting half-year profit

Investors are bidding up the ASX 200 tech company following its half-year results.

Read more »