The TPG Telecom Ltd (ASX: TPG) share price is in focus today after the company reported a 4.2% rise in mobile service revenue and an 18.4% jump in EBITDA for 2025, underpinned by its strongest mobile subscriber growth since 2022.
Image source: Getty Images
What did TPG Telecom report?
- Service revenue increased 2.2% to $4,179 million, with mobile service revenue up 4.2% to $2,423 million
- EBITDA rose 18.4% to $1,660 million; on guidance basis, up 2.0% to $1,637 million
- Net profit after tax (NPAT) of $52 million, compared to a loss of $140 million in FY24
- Operating free cash flow (OFCF) of $1,291 million, up 98.9%
- Final dividend of 9.0 cents per share (30% franked), taking total FY25 dividends to 18.0 cents
- $3 billion capital return and $2.7 billion in bank borrowings repaid
What else do investors need to know?
TPG Telecom credited its 2025 performance to a successful regional mobile network expansion, which brought in 228,000 new mobile subscribers. Growth was strongest in digital-first brands and the EGW business, with average revenue per user ticking up to $35.51.
The company also completed the sale of key infrastructure and business units, making TPG a leaner, more mobile-focused business. Management noted that lower ongoing capital spending and new financing initiatives are expected to continue supporting healthy free cash flow.
What did TPG Telecom management say?
CEO and Managing Director Iñaki Berroeta said:
2025 was a transformational year for TPG Telecom. We delivered another year of mobile subscriber growth, cementing our position as Australia's leading challenger telco… We are well-positioned to unlock further value for customers and shareholders. We are targeting continued growth in our share of Mobile Service Revenue, growing EBITDA margins as we keep costs strongly under control, and ongoing growth in free cash flow, earnings per share and return on capital.
What's next for TPG Telecom?
Looking ahead, TPG Telecom has set guidance for FY26 EBITDA between $1,665 million and $1,735 million, with capital expenditure of around $750 million. The company expects continued mobile growth and tight cost control to support these targets.
Management is prioritising dividend growth in line with sustainable profits and cash flow, subject to Board approval, and will continue to drive efficiencies as it further streamlines its operations.
TPG Telecom share price snapshot
Over the past 12 months, TPG Telecom shares have declined 10%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 11% over the same period.
