Last week’s annual result from TPG Telecom came as no surprise to those who have been following the stock’s evolution since it changed stripes in 2008.
At almost $300 million in operating earnings (EBITDA), virtually no debt ($15 million net debt), 3,800km of fibre-optic cable network and significant international cable capacity (some of which it owns), TPG Telecom is creating a mini-Telstra without the legacy business. The evidence of the company’s success so far is the 671,000 broadband subscribers and 360,000 mobile phone subscribers on its books.
The general business environment over the last year or two has been shaky with many industries in a genuine state of flux. There are many well documented reasons why this has been so, but the telecommunications industry has been conspicuously free of this malaise.