TPG Telecom (ASX:TPG): Mobile Subscriber Growth and HY26 Earnings in Focus

Aditi Sarkar

12 November 2026 10:23 PM AEDT

TPG Telecom (ASX:TPG): Mobile Subscriber Growth and HY26 Earnings in Focus

Image Source: Shutterstock

You are reading a free article with opinions that may differ from the recommendation given by Kalkine in its paid research reports. Become a Kalkine member today to get access to our research reports, in-depth technical and fundamental research. Learn more

Start Your Free Trial Now!

Highlights

TPG Telecom (ASX:TPG) reported HY26 service Revenue of AUD 2.071 billion.
Mobile subscribers grew by 64,000 during the half.
HY26 EBITDA increased 1.0% to AUD 821 million.
FY26 EBITDA guidance remained AUD 1.665 billion–AUD 1.735 billion.

TPG Telecom Limited provides mobile and fixed connectivity services across Australia through brands including Vodafone, TPG, iiNet, Lebara and felix. TPG Telecom (ASX:TPG) closed at AUD 4.04 on 12 November 2026. Its August report for the first half of calendar 2026 showed growth in mobile service revenue and earnings, alongside pressure in home broadband. The company maintained its full-year guidance as it continued adjusting operations following the sale of infrastructure and enterprise assets.

Telecommunications Operations

TPG Telecom (ASX:TPG) operates the Vodafone mobile network and supplies consumer and Business telecommunications products. Its brands serve customers through different price points and distribution channels, including digital-focused subscriptions. The company also provides home broadband services through the National Broadband Network and fixed wireless technologies. Competition affects both customer Acquisition and retention, while network coverage, service quality and Marketing expenditure influence commercial performance. Mobile and broadband results should be compared separately because Demand patterns and costs differ.

Mobile Growth in HY26

For the six months ended 30 June 2026, TPG Telecom reported service revenue of AUD 2.071 billion, up 0.5%. Mobile service revenue increased 3.1% to AUD 1.224 billion, supported by 64,000 additional mobile subscribers. Mobile average revenue per user reached AUD 35.21, an increase of AUD 0.24 from the prior corresponding period. The company cited growth in digital-first brands and mobile virtual network operator customers. These are operating indicators; higher subscriber numbers do not independently establish how much profit a business generates.

Earnings, Cash Flow and Broadband

TPG Telecom (ASX:TPG) recorded HY26 EBITDA of AUD 821 million, up 1.0% on the statutory continuing-operations comparison. Net profit after tax was AUD 35 million, versus AUD 32 million in HY25. Home broadband service revenue declined 1.9% to AUD 827 million, illustrating the different trajectories within the company’s service portfolio. Operating free cash flow totalled AUD 199 million, up 16.4% on the company’s pro forma comparison. Free cash flow to Equity on that basis was AUD 93 million. Statutory and pro forma growth rates should not be mixed: the latter adjust for the commercial structure of the Vocus transaction.

Business Simplification and FY26 Guidance

TPG Telecom completed the sale of fibre infrastructure Assets and its enterprise, government and wholesale fixed business to Vocus in 2025. The 2026 interim results incorporate new commercial arrangements following that transaction. The group noted lower financing costs after repaying AUD 2.7 billion of bank borrowings in late 2025. In August 2026, management maintained its FY26 EBITDA guidance at AUD 1.665 billion to AUD 1.735 billion and Capital Expenditure additions at approximately AUD 750 million, assuming no material change in operating conditions and excluding material one-offs. The board declared a 10-cent interim dividend, 25% franked.

Risks and Operational Milestones

The mobile business faces price competition, churn, network spending and technology changes. Broadband profitability depends on customer retention and wholesale access costs. Continuing commercial arrangements with other network providers can introduce contractual dependencies, while cyber-security and network reliability remain operational concerns. Financing expenses and the timing of capital expenditure also influence free cash flow. Guidance is conditional, and its stated range is not a guarantee of the year-end outcome.

What to Watch Next

For TPG Telecom (ASX:TPG), subsequent updates can clarify mobile subscriber additions, average revenue per user and the stabilisation of home broadband. The company’s full-year report should also show performance against its unchanged EBITDA and capital expenditure guidance. Analysts can compare statutory and pro forma cash flow carefully, given the changes in business scope following the Vocus transaction.

Key Insights

TPG Telecom (ASX:TPG) reported modest service-revenue growth in HY26, higher mobile Earnings drivers and lower home broadband revenue. Debt reduction and Operating Cash Flow are relevant to its financial position. The main areas to monitor are full-year guidance, customer trends and the cost of maintaining competitive connectivity services.

Download Free Report – Explore 3 Stock Ideas & Industry Insights

Unlock 3 stock ideas and key industry insights in our free report. This information is general in nature and does not consider your personal objectives, financial situation, or needs. It is not financial advice.

All investments involve risk—consider independent advice before making any investment decisions.

View 3 Research Reports

Disclaimer:

This article (“Article”) has been prepared by Kalkine Pty Limited (ABN 34 154 808 312) (Australian financial services licence number 425376) (“Kalkine”) and its related bodies corporate who are authorised to provide general financial product advice. Kalkine.com.au and its associated pages are published by Kalkine.

Any information/advice provided in this article is general in nature and does not take into account your objectives, financial situation or needs. You should therefore consider whether the information is appropriate for your objectives, financial situation and needs before acting upon it.

There may be a Product Disclosure Statement, Information Memorandum or other offer document (“Offer Document”) for the securities or other financial products referred to in Kalkine articles. You should obtain a copy of the Offer Document and consider it before making any decision about whether to acquire the security or financial product.

Kalkine strongly recommends that you seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) before acting on any advice/information in this Article or on the Kalkine website. Not all investments are appropriate for all people.

The information in this Article and on Kalkine website has been prepared from a wide variety of sources, which Kalkine, to the best of its knowledge and belief, considers accurate. Kalkine has made every effort to ensure the reliability of the information contained in its articles (including this Article), newsletters and websites. All information represents our views at the date of publication and may change without notice.

The information in this Article does not constitute an offer to sell securities or other financial products or a solicitation of an offer to buy securities or other financial products.

Kalkine does not issue, sell or deal in any financial products.

This Article may contain information on past performance of particular investments. Please note past performance is neither an indicator nor a guarantee of future performance.

To the extent permitted by law, and excluding any dishonesty or gross negligence by Kalkine, Kalkine disclaims and excludes all liability for any direct, indirect, implied, punitive, special, incidental or other consequential loss or damage arising from the use of or reliance on this Article, the Kalkine website and any information published on the Kalkine website without any warranties or representations by Kalkine to you. To the extent the law prohibits or limits this exclusion, Kalkine limits its liability to the resupply of services.

Please also read our Terms & Conditions and Financial Services Guide for further information.

Employees and/or associates of Kalkine and its related entities may hold interests in the securities or other financial products covered in this Article or on the Kalkine website. Any such employees and associates are required to comply with certain safeguards, procedures and disclosures as required by law.

Some of the images/music that may be used in the Article are copyright to their respective owner(s). Kalkine does not claim ownership of any of the pictures displayed/music used in the Article unless stated otherwise. The images/music that may be used in the Article are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated or was found to be necessary.

Kalkine Media Pty Ltd, an affiliate of Kalkine Pty Ltd, may have received, or be entitled to receive, financial consideration in connection with providing information about certain entity(s) covered on its website.