The TPG Telecom Ltd (ASX: TPG) share price will be in focus today after the telco reported a 1% lift in half-year EBITDA to $821 million and raised its interim dividend to 10 cents per share.
What did TPG Telecom report?
- Service revenue up 0.5% to $2,071 million
- Mobile service revenue up 3.1% driven by 64,000 more mobile subscribers
- EBITDA up 1% to $821 million (up 4.5% pro forma)
- NPAT of $35 million, up from $32 million last year
- Operating free cash flow of $199 million, up 16.4% pro forma
- Interim dividend increased to 10 cents per share, 25% franked
What else do investors need to know?
TPG Telecom highlighted continued growth in its mobile business, propelled by its digital-first brands and network expansion, helping boost average revenue per user to $35.21. Home broadband revenue slipped by 1.9% amid fierce competition, but the business expects further subscriber improvement in the second half of FY26.
The company has realised gains from selling its fibre and enterprise assets to Vocus Group in 2025, allowing for lower borrowing costs and a stronger balance sheet. Its fixed wireless business also returned to growth, supported by new standalone 5G offerings.
What did TPG Telecom management say?
Iñaki Berroeta, CEO and Managing Director, said:
TPG Telecom delivered a strong first-half result, demonstrating the benefits of network sharing and the strength of our multi-brand strategy, along with disciplined delivery, and a continued focus on value for our customers and shareholders. We are executing our strategy with discipline, improving profitability and generating strong cash flows.
The benefits of our simplified operating structure and ongoing network and IT systems enhancements are supporting improving business performance and shareholder returns. With clear strategic foundations in place, we remain focused on delivering sustainable long-term value. TPG Telecom is well-positioned for the years ahead as we deliver ongoing growth in free cash flow, earnings per share and return on capital.
What’s next for TPG Telecom?
The board has reaffirmed its FY26 guidance, targeting EBITDA between $1,665 million and $1,735 million, and capital expenditure of around $750 million. Management expects ongoing improvements in free cash flow as past investments in network and IT start to pay off, along with further momentum from mobile subscriber growth and digital-first strategies.
TPG Telecom says it will keep prioritising sustainable growth and increasing dividends in line with profit and cash flow over time. The company continues with its operational simplification and cost controls to drive long-term shareholder value.
TPG Telecom share price snapshot
The TPG Telecom share price has significantly underperformed the S&P/ASX 200 Index (ASX: XJO) over the past 12 months with a decline of around 33%.
The post TPG Telecom shares on watch as earnings and dividend edge higher in HY26 appeared first on The Motley Fool Australia.
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Motley Fool contributor James Mickleboro 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 no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.