Key Highlights

• TPG Telecom's growth is led by its mobile business, where retaining and adding subscribers drives recurring revenue.

• First-half 2026 mobile subscribers rose to 5.81 million, helping lift net profit about 9% to A$35 million.

• As Australia's third major mobile operator, TPG competes on value to win and keep customers.

• Increasingly, its growth is driven by mobile, where the key to success is customer loyalty - winning subscribers and, crucially, keeping them.

TPG Telecom (ASX:TPG) is Australia's third-largest mobile network operator, home to brands including Vodafone, and a member of the S&P/ASX 200 communication services sector. It provides mobile and broadband services to consumers and businesses. Increasingly, its growth is driven by mobile, where the key to success is customer loyalty - winning subscribers and, crucially, keeping them. How mobile customer loyalty shapes TPG's Business is central to understanding it, because each mobile customer represents recurring monthly revenue, and the size and stability of that subscriber base, along with what each customer pays, determines the health of the business.

The first-half 2026 result, for the six months to 30 June 2026, showed mobile growth driving the company forward, even as broadband softened.

Mobile-led growth

TPG reported revenue from continuing operations of A$2.425 billion and EBITDA of A$821 million, up around 1%, with net profit from continuing operations of A$35 million, up about 9%. The board declared an Interim Dividend of 10.0 cents a share. The company reaffirmed full-year EBITDA guidance of A$1.665-1.735 billion, with Capital Expenditure of around A$750 million.

The growth was led by mobile. Mobile subscribers rose to 5.81 million, from 5.74 million at the end of 2025, while broadband subscribers eased to 1.94 million, from 1.98 million. The contrast - mobile growing, broadband declining - shows why mobile is the focus of TPG's strategy and the main driver of its improving results.

Why loyalty drives the business

Mobile is a subscription business, and subscription businesses live and die by their ability to retain customers. Each subscriber pays a monthly fee, so the total revenue depends on the number of subscribers and how long they stay. Winning a new customer is expensive, involving Marketing and often handset subsidies, so keeping existing customers - and reducing 'churn', the rate at which they leave - is central to profitability. A loyal subscriber base provides stable, Recurring Revenue and spreads Acquisition costs over a longer relationship.

This is why TPG focuses on customer loyalty. Growing its subscriber base to 5.81 million, while keeping churn low, builds a larger, more stable stream of recurring revenue. Loyalty also allows TPG to earn more from customers over time, through higher-value plans and additional services. In a competitive market, the operator that best attracts and retains customers, at a reasonable cost, builds the strongest business - and mobile loyalty is the foundation on which TPG's growth rests.

Competing as the third operator

TPG is the third-largest of Australia's three major mobile network operators, behind Telstra and Optus. As the challenger, it competes hard on value - offering competitive pricing and plans to win customers from its larger rivals, particularly price-conscious consumers. Its Vodafone and other brands target different segments of the market, giving it multiple ways to attract subscribers.

Being the third operator has both challenges and opportunities. TPG has a smaller network and customer base than Telstra and Optus, and it has historically had weaker coverage in some regional areas. But it can grow by winning share through value and by improving its network and offering. To strengthen its regional coverage and reduce costs, TPG has pursued network-sharing arrangements, allowing it to offer better coverage without building everything itself. Competing effectively as the challenger, and using its Assets efficiently, is central to growing its mobile business and its customer loyalty.

A focused telecommunications business

TPG has reshaped itself into a more focused telecommunications operator. It has streamlined its business, including through asset sales, to concentrate on its core mobile and broadband operations and to strengthen its balance sheet. This focus, along with cost discipline, has supported its improving margins and profitability, as the first-half result showed.

The mobile business is the centrepiece of this focused strategy. By growing subscribers, keeping customers loyal, improving its network through sharing arrangements, and controlling costs, TPG aims to grow Earnings steadily. Broadband, while softer, remains a significant part of the business, providing additional revenue and the opportunity to sell customers multiple services.