David Teoh’s ASX-listed Internet service provider TPG – Australia’s fourth biggest ISP after Telstra, Optus and iiNet with 516,000 broadband subscribers – has reported net profit of $33.8 million, up 23 percent, for the six months to December 31.
The result comes one year after Teoh outlaid $373 million to acquire Pipe Networks – the outfit which built the 9000km undersea Sydney-Guam cable – from Bevan Slattery, allowing Slattery to move into datacentre business with the float of his NextDC operation.
TPG’s H1 report, issued to the ASX yesterday, showed TPG still has $302 million debt after paying off $30 million in the six months.
TPG last year was outbid by iiNet in the battle to acquire AAPT’s 115,000 broadband subscribers (for which iiNet’s Michael Malone paid around $500 per subscriber). But TPG says its subscriber growth has accelerated since the end of H1 2011.
Pipe Networks signed three major contracts – with ASX, Iress and VHS – in H1, but this has had minimal impact on earnings to date, TPG says. It has raised EBITDA guidance for the financial year to June 30 from $215-225 million to $225-230.