TPG Telecom's FY23 Financial Results

TPG Telecom Limited (ASX: $TPG) has released its full-year financial results for the year ended 31 December 2023. The company reported a 4.3% increase in service revenue to $4,632 million, driven by strong growth in mobile service revenue and continued investment in transformation and simplification. The statutory EBITDA decreased by 12.2% to $1,875 million due to a one-off gain on tower sale in FY22. However, the EBITDA excluding the tower sale gain and other non-recurring items increased by 7.6% to $1,930 million, in line with the company's guidance. The operating free cash flow also saw a significant increase of 81.5% to $167 million. TPG Telecom declared a dividend of 9.0 cents per share, bringing the total FY23 dividends to 18.0 cents per share. The company has provided an EBITDA guidance of $1,950 million to $2,025 million for FY24.

Executive Commentary on FY23 Results

Chief Executive Officer and Managing Director, Iñaki Berroeta, expressed satisfaction with the company's performance, stating, 'Our mobile business has achieved solid gains driven by new subscribers and the successful refresh of plans across our premium Vodafone brand as we position our business for sustainable growth in a competitive market. Our transformation continues at pace, and we are seeing the positive impact of simplifying and removing complexity from the business. These benefits will accelerate in the coming years as we deliver better network and service experiences for our customers.' Mr. Berroeta also highlighted the company's EBITDA growth in FY23, reflecting the strong performance across the mobile business and the delivery of direct cost efficiencies during the year.

Summary of FY23 Results and Outlook

TPG Telecom's FY23 results demonstrated solid growth in mobile service revenue and continued investment in transformation and simplification. The company's EBITDA, excluding one-off items, increased in line with guidance, and the operating free cash flow saw a significant rise. Despite a decrease in statutory EBITDA, the company declared a dividend of 9.0 cents per share, reflecting its commitment to shareholder returns. Looking ahead, TPG Telecom expects further growth in FY24, supported by ongoing investment in business transformation. The company remains confident in the outlook for strong improvements in cash earnings over the next few years, aiming to deliver better network and service experiences for its customers while supporting returns for shareholders.