CANBERA (dpa-AFX) - TPG Telecom Limited (TPG.AX), an Australian telecommunications company, reported higher first-half profit, mainly driven by a drop in net financing costs. Total revenue declined slightly due to lower handset and hardware sales.
Net profit after tax (NPAT) rose to A$35 million, or 1.8 cents per share, from A$32 million, or 1.7 cents per share, a year earlier.
Net financing expenses declined 24.3%, resulting in savings of A$51 million, driven primarily by a sharp reduction in net bank interest expense, which fell to A$37 million from A$122 million last year.
On a pro forma basis, NPAT was A$35 million, or 1.8 cents per share, compared with a loss of A$20 million, or 1.1 cents per share, a year ago.
Underlying net profit after tax and amortization (NPATA) increased to A$70 million from A$69 million.
Pro forma underlying NPATA rose to A$70 million from A$17 million, while pro forma underlying basic earnings per share (EPS) increased to 3.6 cents from 0.9 cents.
Earnings before interest, taxes, depreciation and amortization (EBITDA) increased to A$821 million from A$813 million a year earlier. On a pro forma basis, EBITDA grew 4.7%.
Earnings before interest and taxes (EBIT) rose to A$208 million from A$205 million, while pro forma EBIT increased 30.8%.
Total revenue declined 0.9% to A$2.425 billion from A$2.448 billion, primarily due to an 8.8% decline in handset and hardware revenue to A$354 million, reflecting lower sales volumes.
Service revenue increased 0.5% to A$2.071 billion from A$2.060 billion on a pro forma basis, driven mainly by a 3.1% increase in mobile service revenue to A$1.224 billion.
The company declared an interim dividend of 10 cents per share, 25% franked, up 11.1% from the prior-year period.
For fiscal 2026, TPG Telecom maintained its EBITDA guidance of A$1.665 billion to A$1.735 billion, excluding material one-off items.
On the ASX TPG Telecom shares were up nearly 7% at A$3.7750.
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