Key Highlights

  • Telstra reported higher FY2026 EBITDA after Lease payments and maintained Investment across mobile and infrastructure.
  • TPG Telecom entered the second half of calendar 2026 with lower Leverage following the sale of infrastructure and fixed-business assets.
  • Aussie Broadband expanded connections through Acquisition and wholesale migration while reporting higher underlying EBITDA.
  • Network ownership, wholesale exposure and customer mix create different Capital requirements and operating risks for each company.

Three ASX-listed telecommunications companies are pursuing markedly different operating models. Telstra Group (ASX:TLS) combines a national mobile network with fixed, enterprise and infrastructure operations. TPG Telecom (ASX:TPG) is concentrating on consumer telecommunications after selling fibre infrastructure and parts of its fixed business. Aussie Broadband (ASX:ABB) is expanding through wholesale services, customer migration and targeted acquisitions.

Their latest results show why the sector cannot be assessed through subscriber counts alone. Network ownership affects margins and capital expenditure, acquisitions can alter the source of connection growth, and changes in customer mix influence average Revenue and retention. The financial periods also differ: Telstra and Aussie Broadband reported years ended 30 June 2026, while TPG reported the six months ended on that date.

Company Business

Telstra operates mobile, fixed consumer and small-business, enterprise and infrastructure activities. Its InfraCo Fixed and Amplitel businesses hold passive infrastructure assets, while its mobile operation serves consumer, business and wholesale customers. The group is also investing in intercity fibre through the Aura Network.

TPG Telecom provides mobile and fixed services through brands that include Vodafone, TPG, iiNet and lower-priced digital offers. Following the Vocus transaction, it retains its mobile network and spectrum assets while accessing sold fibre infrastructure under long-term commercial agreements. A regional network-sharing arrangement with Optus extends its reported population coverage.

Aussie Broadband supplies residential, business, enterprise, government and wholesale telecommunications services. It resells mobile access, operates broadband and voice platforms, and owns a smaller fibre network. The company’s recent expansion includes the acquisition and migration of AGL telecommunications customers.

Financial Performance

Telstra reported FY2026 total income of A$23.41 billion, down 0.9%. Reported EBITDA after lease payments rose 3% to A$8.2 billion, while net profit after tax increased 2.7% to A$2.4 billion. Earnings Per Share rose 5.3% to 19.9 cents. Business-as-usual Capital Expenditure was A$3.91 billion and net Debt was A$17.30 billion.

Telstra declared total FY2026 dividends of 21.0 cents per share. Its total retail mobile base reached 26.0 million services. Infrastructure earnings remained material, with InfraCo Fixed EBITDA after lease payments of A$1.84 billion and Amplitel contributing A$323 million.

TPG’s first-half 2026 service revenue was A$2.07 billion and total revenue was A$2.43 billion. EBITDA was A$821 million, 1% above the prior statutory continuing-operations figure and 4.5% higher than the pro forma comparative. Statutory net profit after tax from continuing operations was A$35 million and underlying NPATA was A$70 million.

TPG generated operating free Cash Flow of A$199 million against the pro forma comparative and incurred A$431 million of cash capital expenditure excluding spectrum. Net debt excluding leases was A$1.38 billion, representing leverage of 0.8 times EBITDA. The company declared a 10.0-cent interim dividend, 25% franked.

Aussie Broadband reported FY2026 revenue of A$1.30 billion, up 9.2%, and Gross Profit of A$465.5 million, up 7.1%. Underlying EBITDA increased 19.6% to A$165.3 million, while statutory EBITDA was A$144.6 million. Statutory net profit after tax was A$35.3 million and underlying net profit after tax was A$52.4 million.

Operating cash flow before interest and tax was A$167.2 million and capital expenditure was A$59 million. Net debt stood at A$142.2 million, or 0.9 times underlying EBITDA. The full-year Dividend was 6.0 cents per share, fully franked.

Customer and Network Position

Telstra reported 26.0 million retail mobile services. In fixed consumer and small business, NBN connections declined while average revenue per user increased to A$89.32. InfraCo Fixed income was about A$2.8 billion. The Aura Network investment envelope was lifted to A$1.8 billion across FY2023 to FY2028, with more than 8,500 kilometres of fibre installed by the FY2026 result.

TPG reported 5.81 million mobile subscribers at 30 June 2026. Postpaid subscribers were 2.85 million and postpaid average revenue per user was A$48.75. Digital-first brands and wholesale mobile channels added customers, while prepaid numbers declined. Mobile service revenue rose 3.1% to A$1.22 billion.

TPG’s fixed subscriber base fell to 1.94 million, including 1.53 million NBN services and 284,000 fixed-wireless services. The company reported that its Optus network-sharing arrangement extended mobile coverage to 99% of the population.

Aussie Broadband ended FY2026 with 1.11 million broadband connections, an increase of 323,000. Residential connections excluding the divested Buddy Brand reached 683,000, business, enterprise and government connections were 93,000, and wholesale connections increased to 336,000. Mobile services reached 263,000. Much of the broadband increase came from wholesale migration, which is relevant when reading the connection growth alongside the lower gross margin.

Strategy and Capital Allocation

Telstra’s Connected Future 30 framework targets a 10% underlying return on invested capital by FY2030; the measure was 9.0% in FY2026. Underlying operating expenses fell by A$454 million during the year. FY2027 guidance covers underlying EBITDA after lease payments of A$8.5 billion to A$8.8 billion, business-as-usual capital expenditure of A$3.35 billion to A$3.65 billion and cash EBIT of A$4.75 billion to A$4.95 billion.

Telstra is combining selected infrastructure and international activities within Telstra Digital Infrastructure. It also agreed to sell 75% of technology-services business Versent to Infosys, with completion expected in the first half of FY2027 subject to the transaction timetable and conditions.

TPG completed the sale of fibre infrastructure and enterprise, government and wholesale fixed assets to Vocus in July 2025. The transaction had an Enterprise value of A$5.25 billion and generated net proceeds of about A$4.7 billion. TPG subsequently returned about A$3.0 billion through a capital return and special dividend, with part of the remaining proceeds used to reduce debt.

TPG reaffirmed calendar-year 2026 guidance for EBITDA of A$1.67 billion to A$1.74 billion, capital expenditure of about A$750 million on an additions basis and operating costs of about A$1.02 billion. Its medium-term plans include A$100 million of operating-cost efficiencies by 2029 before inflation.

Aussie Broadband acquired AGL’s telecommunications assets for A$115 million in shares, plus a potential earn-out of up to A$10 million in shares. The transaction completed in June 2026. More than 116,000 broadband and 30,000 mobile services had migrated by the FY2026 result, with completion expected in the December 2026 quarter.

Aussie Broadband guided to FY2027 underlying EBITDA of A$205 million to A$215 million and capital expenditure of A$60 million to A$65 million. It also announced an on-market share buyback of up to A$115 million. Its longer-term operating targets include revenue above A$2 billion, an EBITDA Margin above 13.5% and NBN Market Share above 17% by FY2028.

Sector Context

Telecommunications Economics depend heavily on whether a provider owns network infrastructure or purchases wholesale access. Asset ownership can support scale and control but requires continuing capital expenditure. Wholesale models can expand more quickly with less network investment, although wholesale input costs and customer mix can constrain margins.

Mobile and fixed broadband are also at different stages. Mobile performance depends on spectrum, coverage, capacity and pricing, while fixed providers must manage wholesale broadband costs and customer migration between technologies. Enterprise services add contract and delivery complexity. These structural differences explain why Telstra, TPG and Aussie Broadband report different margins, leverage and investment requirements.

Risks to Consider

Telstra’s risks include network reliability, execution of infrastructure investment and continued pressure in fixed and enterprise services. An external investigation into its July 2026 outage identified gaps involving network timing, ownership, architectural oversight and change management. The company committed to remediation, but operational and regulatory consequences require monitoring.

TPG faces pressure from falling postpaid average revenue per user, a declining NBN base and competition across mobile and broadband. Its post-transaction model also relies on commercial access to infrastructure sold to Vocus and on the performance of the Optus network-sharing arrangement. Spectrum renewal and separation activities may affect future cash requirements.

Aussie Broadband must complete the AGL customer migration without material service disruption or unexpected cost. Acquisition-led and wholesale growth can produce different margins from organic retail additions. The scrip-funded acquisition increased shares on issue, while the group must balance its buyback, capital spending and debt position against integration requirements.

What to Watch Next

Telstra’s FY2027 updates should be assessed against its EBITDA, capital-expenditure and cash-EBIT guidance. Mobile service trends, fixed-customer losses, infrastructure returns and outage remediation will show whether the operating plan is progressing as intended.

For TPG, the full calendar-year result will indicate whether the second half delivers the weighting implied by guidance. Mobile subscriber mix, postpaid revenue per user, fixed-service losses, cost efficiencies and cash expenditure are central measures.

Aussie Broadband’s December-quarter migration milestone is the immediate operational checkpoint. Subsequent disclosures should separate acquired, wholesale and organic customer additions and show how the mix affects gross margin, cash flow and the FY2027 EBITDA range.

How to Read the Current Position

Telstra remains the largest and most infrastructure-intensive company of the three. TPG has reduced leverage and narrowed its operating focus after the Vocus transaction. Aussie Broadband is expanding faster from a smaller base, with acquisition and wholesale migration accounting for much of the recent connection increase.

The appropriate measures therefore differ. Telstra’s infrastructure returns, mobile performance and capital intensity carry more weight than headline connection growth. TPG’s subscriber mix and post-sale cash economics are central. Aussie Broadband’s integration progress, margin and cash conversion are more informative than total connections in isolation.