Category: Stock Market

AGL Energy Limited (ASX: AGL) has an incredible lineage that spans three different centuries. Originally formed as The Australian Gas Light Company in 1837, what we know as AGL Energy today has weathered many storms. As you might suspect, that means the AGL share price has had its fair share of highs and lows.

While its listed life began in 1871 on the Sydney Stock Exchange, the company went on to hit the ASX in 2006. Since then, investors have been a part of a bumpy ride. Over the course of the past 12 months, the AGL share price has eroded 53.4% in value.

Despite its long life on the markets, many would be surprised to know that AGL’s worst-ever day on the ASX wasn’t all too long ago.

AGL share price’s worst day ever

The worst day for the AGL share price occurred only a little more than a month ago on June 30, when it fell 9.99%.

It began with an announcement before the market opened. The announcement was titled ‘Update on demerger, dividend actions and earnings guidance’.

Investors weren’t too pleased with what was contained in that release. The company provided more detail around its intention to demerge and be listed as two separate entities on the ASX — which all seemed fairly straightforward.

Where it might have gone off track for shareholders is when AGL mentioned it would be terminating its special dividend program. This meant the scrapping of the additional 25% of underlying profit after tax paid out in the form of a dividend in FY21 and FY22. The news was likely a massive blow to income-focused investors of AGL, leading to a selloff in the share price.

In short, the board made the decision to preserve roughly $400 million to $500 million in cash heading into the demerger. Though it sounds like a good plan on paper, shareholders know not everything goes to plan.

Adding another blow to the AGL share price, it was revealed the company also expected underlying earnings before interest, taxes, depreciation, and amortisation (EBITDA) to be within the lower half of its previous guidance.

Furthermore, for investors that had been hoping for a turnaround in the business, water was poured on that fire. AGL suggested a “material step-down” in earnings for FY22 as lower wholesale electricity prices of the past two years are realised.

From then to now

Since the AGL share price suffered its worst day on the ASX things haven’t gotten much better. On 12 August 2021, the company reported its full-year results for FY21, which was met with disappointment.

According to the release, AGL’s revenue dropped 10% compared to the prior year and underlying profits sank 33.5% to $537 million.

Perhaps expectedly, the AGL share price has gone on to fall a further 11% since its worst day.

At the time of writing, shares are swapping hands at $7.19 apiece, a fall of 0.14% on yesterday’s closing price.

The post When was the worst-ever day on the AGL (ASX:AGL) share price chart? appeared first on The Motley Fool Australia.

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• The AGL (ASX:AGL) share price is down 38% so far in 2021. Here’s why
• Why AGL, PointsBet, Premier Investments, & Star shares are charging higher
• The ASX reporting wrap-up: Telstra, AGL Energy, Downer

Motley Fool contributor Mitchell Lawler 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 Bruce Jackson.

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The Sydney Airport Holdings Pty Ltd (ASX: SYD) share price is slumping lower this morning. That’s after the company posted its financial results for the 6-months ending 30 June 2021.

At the time of writing, shares in Australia’s gateway airport are down 0.13%, trading for $7.71. Meanwhile, the S&P/ASX 200 Index (ASX: XJO) has started the day up 0.46%.

Let’s take a closer look.

Sydney Airport share price in focus after revenue drops 30%

• Net loss after tax benefit of $97.4 million. This is up 81.7% on the prior corresponding period’s (pcp) loss. This includes a 36% drop in aeronautical revenue and a 40.6% plunge in retail revenue.
• Revenue down 31.3% on the pcp to $351 million.
• Earnings before interest, taxes, depreciation, and amortisation (EBITDA) of $210.8 million – a 29.8% loss on the pcp.
• A negative cash flow of $565.5 million for the 6 months.

What happened in the first 6 months for Sydney Airport?

The biggest drag on Sydney Airport’s financials – and the Sydney Airport share price – for the period is undoubtedly the COVID-19 pandemic. Overall passenger numbers declined 36.4% on the pcp – including a 91% plunge in international arrivals.

A brief glimmer of hope came about in April when the Trans-Tasman travel bubble between Australia and New Zealand opened up. Before the pandemic, New Zealand was the number 2 departure spot for wannabe tourists in Oz. As quickly as hope appeared, it vanished. The New Zealand government, along with every state and territory, shut their borders to NSW as the state’s delta outbreak began to take hold. The first cases and initial border restrictions occurred at the end of the period.

What did management say?

Sydney Airport CEO, Geoff Culbert, said

It was a challenging six months, but we were encouraged to see passenger traffic rebound strongly every time borders were open. From January to April, we recovered to 65% of our pre-COVID domestic passengers and in just over two months between late April and June, trans-Tasman traffic recovered to more than 40% of pre-COVID levels.

We’re optimistic that this trend will repeat itself as the vaccine program gains momentum and we see a sustained easing of restrictions.

What’s next for Sydney Airport

The biggest story affecting the Sydney Airport share price at the moment is the attempt to take over the business by a consortium of infrastructure investors. Twice the consortium has tried to buy all the shares in the company and twice it has been rebuffed by the board.

On the second attempt, the board gave the following rationale.

In coming to this conclusion, the current environment does not change the Boards’ view of the long-term value. The Boards also note the rapid increase and acceleration in Australian vaccination rates in recent weeks and the governments’ plans to progressively ease restrictions as the population reaches vaccination targets which will then see the re-opening of travel.

Sydney Airport share price snapshot

Over the past 12 months, the Sydney Airport share price has increased 47.1%. This has been driven mostly by the initial takeover attempt. Its share price has still not recovered since the March 2020 coronavirus selloff.

Sydney Airport has a market capitalisation of approximately $20.8 billion.

The post Sydney Airport (ASX:SYD) share price slumps as losses skyrocket by 80% appeared first on The Motley Fool Australia.

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• Macquarie (ASX:MQG) share price lower as Sydney Airport appears a no-go
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Motley Fool contributor Marc Sidarous 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 Bruce Jackson.

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The Inghams Group Limited (ASX: ING) share price is climbing on Friday after the company reported its latest full-year result.

In early trade, shares in the poultry producer are up 7.6%, trading at $4.19.

Inghams share price flies as net profit doubles

Ingham’s this morning provided its results for the year ended 30 June 2021 (FY21). Some of the key takeaways include:

• Revenue up 4.4% on the prior corresponding period (pcp) to $2,668 million
• Underlying earnings before interest, tax, depreciation and amortisation (EBITDA) up 9.6% on pcp to $448.7 million
• Statutory net profit after tax (NPAT) up 107.7% on pcp to $83.3 million
• Total dividends up 17.9% on pcp to 16.5 cents per share, representing a 71% payout ratio.

The Inghams share price is climbing higher on the result with investors bidding up the Aussie food producer’s shares in early trade.

What happened in FY21 for Inghams?

Ingham’s reported core poultry volume growth of 4.2% with overall trading volume now ahead of COVID-19 trading levels.

Solid sales volumes throughout the year underpinned this morning’s earnings figures. This, combined with operational efficiencies, net feed cost benefits and frozen poultry inventory reductions, helped boost earnings.

Ingham’s reported solid performance across each of its Retail, QSR, Food Service and Wholesale segments. Australian export volumes were lower in part due to the impact of bird flu in some farms outside the Inghams network.

What did management say?

CEO and managing director Andrew Reeves was positive in today’s release, saying:

These strong financial results are underpinned by solid poultry volume growth and a recovery across the majority of our key channels during the year.

Operationally, we are in a strong position and our optimisation strategy has made a positive contribution to the results we have delivered.

What’s next for Inghams and its share price?

Inghams is focused on its optimisation program including 320 improvement project opportunities in FY22. The company’s Auckland processing facility is also scheduled for completion by 31 December 2021.

The Inghams share price was up 23.0% prior to Friday’s open and is outperforming the S&P/ASX 200 Index (ASX: XJO) in the year to date.

The post Inghams (ASX:ING) share price leaps 7% as FY21 profits double appeared first on The Motley Fool Australia.

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Motley Fool contributor Ken Hall 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 Bruce Jackson.

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It has been a painful week for the BHP Group Ltd (ASX: BHP) share price following the collapse of iron ore prices and the release of the company’s highly anticipated FY21 results.

Buy the rumor, sell the news

The BHP share price was up a solid 24.5% year to date in the week prior to its FY21 results being released.

Shares in the iron ore major closed at $52.81 last Friday, even though iron ore prices had already collapsed below ~US$170/tonne.

BHP released its FY21 results on Tuesday 17 August. On that day shares fell 1.42% to $51.33.

But this was just the beginning of the harsh correction.

The BHP share price would free fall 8.06% on Wednesday to $47.70 and slide another 6.35% on Thursday to a 5-month low of $44.67.

It seemed the market anticipated record earnings due to sky-high iron ore prices for most of FY21. And instead, it used this as an opportunity to sell.

The BHP share price has tumbled 14.21% this week, with its year-to-date return shrinking to just 3.74%.

What else is driving the BHP share price lower?

BHP has acknowledged the potential challenges ahead, with its economic and commodity outlook report citing:

…the increasing likelihood of stern cuts to steel output in China in the current half year, as affirmed by China’s peak industry body in early August, is testing the bullish resolve of the futures markets. Prices have decreased materially in late July and early August, but they remain extremely high relative to history at around $160/t at the time of writing.

Going forward, we expect that, in addition to structural market based drivers, safety and environmental inspections are likely to have a material influence on the average level and seasonal volatility of Chinese domestic iron ore production. 

The volatility in iron ore price could drive uncertain performance in the BHP share price in FY22.

The post BHP (ASX:BHP) share price slides for 4th straight session, down 14% this week appeared first on The Motley Fool Australia.

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Motley Fool contributor Kerry Sun 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 Bruce Jackson.

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The Newcrest Mining Ltd (ASX: NCM) dividend just increased for a sixth consecutive year thanks to higher copper and gold prices.

The mining giant released an encouraging FY21 result on Thursday, when its share price closed 1.07% higher to $25.54.

How did Newcrest perform in FY21?

Contrary to the performance of the Newcrest share price, which is down 5% year-to-date, the company delivered a well-rounded financial performance with key highlights including:

• Revenue up 17% on the prior corresponding period (pcp) to $4.6 billion.
• Earnings before interest, taxes, depreciation, and amortisation (EBITDA) increased 33% to $2.4 billion.
• Underlying and statutory profit of $1.2 billion. Underlying profits increased 55% and statutory profit surged 80%.
• Basic earnings per share (EPS) of US $1.425 — up 71% on the pcp.
• Gold production of 2.1 million tonnes and record copper production of 142.7 thousand tonnes.
• Realised gold price up 17% to US$1,796/oz.
• Realised copper price up 42% to US$3.66/lb.

The company also advanced a number of organic growth options at its flagship Cadia gold and copper mine in New South Wales, as well as emerging mines Red Chris in Canada and Havieron in Western Australia.

Newcrest dividend more than doubles in FY21

Newcrest managing director and CEO Sandeep Biswas commented on the increase in shareholder returns:

Our dividend policy targets total dividends for a financial year to be in the range of 30-60% of that financial year’s free cashflow, with a minimum annual dividend of US 15 cents per share. Given our record free cash flow generation for FY21, strong balance sheet and positive outlook the Board has approved a final dividend of US 40 cents per share, which is 129% higher than last year’s final dividend. This equates to a record total full-year dividend of US 55 cents per share which represents a 41% payout of FY21’s free cashflow and marks our sixth consecutive year of increasing dividends to shareholders.

Newcrest dividend key dates

The Newcrest share price will go ex-dividend on Thursday, 26 August, and be paid out on Thursday, 30 September.

Shares in the mining giant suffered a drop in early trade today, down 2.23% to $24.97.

The post The Newcrest (ASX:NCM) dividend boosted 129% appeared first on The Motley Fool Australia.

More reading

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Motley Fool contributor Kerry Sun 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 Bruce Jackson.

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ASX accounting software developer Xero Limited (ASX: XRO) has been one of the top-performing shares to own over the past 12 months. In that time, the Xero share price has risen well over 50% (to $147.89, as at the time of writing). With a market cap of almost $22 billion, it is now larger than ASX stalwarts like REA Group Limited (ASX: REA) and Woodside Petroleum Limited (ASX: WPL).

Let’s take a quick look under the hood to see what has got the Xero share price zooming higher over the past year.

Company background

Xero develops cloud-based software that helps small and medium-sized business manage their day-to-day accounting. Xero’s platform allows users to perform a range of vitally important tasks, such as generating invoices and purchase orders, tracking payments, managing payroll, and calculating GST returns. The software can also create insightful reporting and analysis on the business’ performance.

Xero operates a software-as-a-service (SaaS) business model. This means that, instead of selling the software itself, Xero sells licenses that grant users remote access to their platform. SaaS is facilitated by cloud technology, and is a very popular business model amongst many new and emerging ASX software companies, like Whispir Ltd (ASX:WSP), WiseTech Global Ltd (ASX:WTC), and Dubber Corp Ltd (ASX:DUB).

Because the COVID-19 pandemic has forced so many companies to adopt remote-working arrangements, SaaS products have become more popular recently. Having these sorts of software platforms located in the cloud helps ensure employees can access them from wherever they are working, and it also means business data can be kept safe and secure.

This is particularly important for small to medium-sized businesses that may lack the resources and digital infrastructure necessary to support remote-working arrangements.

Recent financials

Because Xero is headquartered in New Zealand, it reports based on a financial year ending 31 March, which means it released its FY21 results to the market back in May.

Xero reported strong results across the board, with operating revenue up 18% year-on-year to NZ$848.8 million, supported by a 20% uplift in subscriber numbers (to 2.74 million). Net profit after tax (NPAT) increased by NZ$16.4 million year-on-year (or a whopping 493%).

Commenting on the result, Xero CEO Steve Vamos spoke about how Xero was supporting small businesses to navigate the many challenges of the pandemic. He said:

The past year has brought home to many people in small business the need to understand in real-time their financial position and how it may change. The value and importance our customers place on their subscription and connection to the broader Xero community is increasing.   

Recent movements in the Xero share price

The Xero share price declined sharply just prior to the release of the company’s FY21 results – but since then it has again rallied strongly. As at the time of writing, the Xero share price is just 6% shy of the 52-week high price of $157.99 it reached in December.

The post The Xero (ASX:XRO) share price is up 50% over the past 12 months appeared first on The Motley Fool Australia.

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Motley Fool contributor Rhys Brock owns shares of Dubber Corporation, REA Group Limited, Whispir Ltd, and WiseTech Global. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Dubber Corporation, Whispir Ltd, WiseTech Global, and Xero. The Motley Fool Australia owns shares of and has recommended Dubber Corporation, WiseTech Global, and Xero. The Motley Fool Australia has recommended REA Group Limited and Whispir Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Mineral Resources Limited (ASX: MIN) share price has been smashed this week. Based on Thursday’s closing price of $52.30 per share, shares in the Aussie lithium miner are down 15.2% since last Friday’s close.

So, what’s causing this ASX 200 resources share to slump right now?

Why the Mineral Resources share price fell 15% this week

For one thing, Thursday was not a good day for the S&P/ASX 200 Index (ASX: XJO). The benchmark Aussie index closed the day 0.50% lower at 7,464.60 points.

However, the Mineral Resources valuation slump dwarfed that. Shares in the Aussie lithium miner closed down 6.6% on Thursday to continue a strong run of daily losses since last week’s earnings results.

Mineral Resources reported a 76% surge in revenues to $3.73 billion while underlying earnings before interest, tax, depreciation, and amortisation (EBITDA) rose by 148% to $1.9 billion.

Mineral Resources also bumped its dividend up 175% to $2.75 per share. That means the Mineral Resources share price is now trading on a 5.3% dividend yield. The ASX 200 resources share is also trading at a price to earnings (P/E) ratio of just 7.8 times.

While those headline earnings figures are strong, investors have been selling down in recent days. That has coincided with some broader selling pressure across other lithium shares including Galaxy Resources Limited (ASX: GXY) and Pilbara Minerals Ltd (ASX: PLS).

The Mineral Resources share price is still having a pretty good 2021 by any measure. Shares in the ASX lithium miner are up almost 36% year to date which is more than triple the gains of S&P/ASX 200 Index (ASX: XJO).

Foolish takeaway

Lithium prices haven’t plummeted in recent days. However, that hasn’t stopped the Mineral Resources share price from plunging lower this week.

Shares in the Aussie lithium miner have been smashed having hit a new all-time high as recently as late July.

The post Why the Mineral Resources (ASX:MIN) share price fell 15% this week appeared first on The Motley Fool Australia.

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Motley Fool contributor Ken Hall 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 Bruce Jackson.

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The Woolworths Group Ltd (ASX: WOW) share price has had a stellar month thus far.

Since the start of the month, shares in the supermarket giant have bolted more than 6% to record highs.

In comparison, the broader S&P/ASX 200 Index (ASX: XJO) has only managed to scrape 0.65% higher since the start of August.  

Let’s take a look at what’s been fuelling the Woolworths share price this month.

What’s fuelling the Woolworths share price?

There have been several catalysts pushing the shares in Woolworths higher in August.

The most prominent catalyst has been the resurgence of the COVID-19 pandemic in Australia. A large proportion of the country’s population has experienced some form of lockdown this month. As a result, supermarkets like Woolworths are poised to benefit as consumers scramble for staple items.

Woolworths has looked to capitalise on this increased demand by launching a digital wallet for its Everyday Rewards loyalty program.

The Woolworths share price received an additional boost earlier this month after launching a new range of home accessories. According to the company’s management, the new inventory is aimed at customers working from home who are looking to improve their space.

In addition, the Woolworths share price has also seen flow-on effects this month following the demerger of its Endeavour business in May.

The demerger saw Endeavour Group Ltd (ASX: EDV) become a separately listed entity that owns retail and drinks businesses.

These include popular bottle shop chains Dan Murphy’s and BWS as well as 300 licensed venues and 12,000 gaming machines.

Outlook for Woolworths

The Woolworths share price will receive extra attention this reporting season.

Investors will be keeping a keen eye on the supermarket giant following a strong result from its rival Coles Group Ltd (ASX: COL). In addition to a strong set of financial results, Coles also delivered a 6.1% increase in its dividend for FY21.

As a result, investors will be curious about what to expect from Woolworths.

According to broker Goldman Sachs, Woolworths is expected to deliver full-year revenue of $55,414.5 million. In addition, analysts predict the supermarket giant will deliver a full-year dividend of 86 cents per share.

Woolworths is scheduled to release its results for the full year on 26 August.

The post August has been a great month so far for the Woolworths (ASX:WOW) share price appeared first on The Motley Fool Australia.

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Motley Fool contributor Nikhil Gangaram 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 owns shares of and has recommended COLESGROUP DEF SET. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Treasury Wine Estates Ltd (ASX: TWE) share price struggled on the ASX yesterday, despite the winemaker and distributor boosting its final dividend to 13 cents per share.

Treasury Wine released its earnings for the financial year 2021 yesterday. For the 12 months ended 30 June 2021, the company brought in $250 million of net profit after tax.

Those profits saw it hand its investors a dividend representing 62.5% more than its previous financial year’s final dividend.

Unfortunately, the boosted dividend wasn’t enough to get the market excited about the formerly embattled company. The Treasury Wine share price slipped 1.5% yesterday, finishing the day trading at $12.50.

Let’s take a closer look at Treasury Wine’s dividend’s growth.

Treasury Wines dividends for FY21

A 13-cent final dividend wasn’t enough to get the Treasury Wine share price back into the green yesterday.

However, it might have some of the winemaker and distributor’s investors jumping for joy.

Taking into account the company’s 15-cent interim dividend – which it gave to its shareholders in March 2021 – Treasury Wine has paid out 28 cents worth of dividends for FY21.

How do the company’s FY21 dividends stack up?

Investors might have breathed a sigh of relief when they saw the company’s recently announced dividend.

Treasury Wine’s interim dividend for FY21 was 25% less than its interim dividend for the 2020 financial year. The company paid its shareholders a 20-cent interim dividend in FY20. However, it dropped its FY20 final dividend to just 8 cents.

That means the company’s total dividends for FY21 are in line with those of the previous comparable period.

Additionally, all of Treasury Wine’s dividends have been fully franked since 2018.

Some investors see greater value in franked dividends as they have the potential to lower a shareholder’s tax bill.

The post The Treasury Wines (ASX:TWE) dividend bumped up by 60% appeared first on The Motley Fool Australia.

More reading

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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 owns shares of and has recommended Treasury Wine Estates Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The TPG Telecom Ltd (ASX: TPG) share price will be one to watch this morning.

This follows the release of the telco giant’s first half year results since its merger with Vodafone Australia.

TPG share price on watch after delivering strong first half growth

• Revenue increased 71% to $2,630 million
• EBITDA up 67% to $886 million
• Net profit after tax down 8% to $76 million
• Fully franked interim dividend of 8 cents per share

What happened in FY 2021 for TPG?

As I mentioned above, this was effectively the first half year result the company has released since its merger with Vodafone Australia. The prior corresponding period included only four days’ contribution compared to a full six months in the first half of FY 2021. This ultimately led to TPG reporting a 71% increase in revenue to $2,630 million.

And while things were not as positive on the bottom line, this was largely due to a one-off non-cash benefit of $226 million in the prior corresponding period. This led to net profit after tax falling 8% to $76 million during the first half of FY 2021. A better reflection of its performance will be its EBITDA metric. This increased 67% to $886 million, which could bode well for the TPG share price today.

During the first half, TPG increased its overall broadband subscriber base by 23,000 to 2.2 million. However, due to the NBN rollout, the average number of DSL subscribers declined by 237,000 compared to the prior corresponding period. This caused a $23 million decline in gross profit as the average gross profit contribution from providing an NBN service was $16 per month lower than for a DSL service.

The company’s mobile customer based declined during the half, but at a significantly reduced rate of decline compared to 2020. The company lost 136,000 mobile subscribers in the six months to 30 June 2021 compared to a decline of 737,000 in 2020. Reduced numbers of international visitors and temporary visa holders due to COVID continued to be a major driver of these customer number declines.

What did management say?

TPG’s Chief Executive Officer, Iñaki Berroeta, was pleased with the half considering the challenges it faced.

He said: “The group’s EBITDA result is pleasing and demonstrates a solid underlying performance achieved through the realisation of $38 million in merger cost synergies and strong commercial management.”

“In an environment with continued headwinds from COVID-19, NBN margin erosion and the new RBS levy, and residual challenges from the merger delay and 5G vendor restrictions, we are performing well. Through the groundwork we have laid across the company over the past year since the merger, we are now in a stronger position to take advantage of our growth potential.”

Potentially giving the TPG share price a lift was Mr Berroeta highlighting its infrastructure assets. There has been speculation that the company may follow the lead of Telstra Corporation Ltd (ASX: TLS) by trying to unlock value through asset sales.

He said: “With 7.5 million consumer and business services, the largest family of owned telco brands in Australia, and a valuable portfolio of infrastructure assets, there is enormous potential to drive greater shareholder returns and exceptional customer experiences.”

What’s next for TPG?

The good news for the TPG share price is that the company is entering the second half in a strengthened position following solid progress on integration activities and its strategic priorities.

It is on track to reach 85% 5G population coverage in ten of Australia’s largest cities and regions by the end of the year. This is expected to support future growth in mobile and home wireless.

Management revealed its second half priorities. It explained: “The company’s key strategic focus areas for the second half of 2021 are bringing more fixed customers onto its own infrastructure, lifting its impact in the enterprise and government market, improving mobile performance and achieving its $70 million merger cost synergy target for 2021.”

No guidance has been provided for the full year.

TPG share price performance

The TPG share price is down a disappointing 7% year to date. This compares to a 32% gain by the shares of rival Telstra. Shareholders may be hoping this result is an inflection points for its shares.

The post TPG (ASX:TPG) share price on watch after 71% jump in first half revenue 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 owns shares of and has recommended Telstra Corporation Limited. The Motley Fool Australia has recommended TPG Telecom Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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