Highlights

  • TPG Telecom reported H1 2026 service Revenue of A$2,071 million, increasing 0.5%, supported by mobile growth.
  • EBITDA reached A$821 million, increasing 4.7% against the comparable pro forma H1 2025 result.
  • Mobile subscribers increased by 64,000, while home broadband subscriptions declined by 42,000.
  • Management reaffirmed FY2026 EBITDA guidance of A$1,665–1,735 million and Capital Expenditure of approximately A$750 million.

TPG Telecom Limited (ASX:TPG) is an Australian telecommunications company providing mobile connectivity, broadband and related services through brands including Vodafone, TPG and iiNet. Following the sale of selected fibre infrastructure and enterprise Assets in 2025, the company's operations are increasingly focused on consumer telecommunications and mobile services. Its H1 2026 results reflected higher mobile earnings, lower financing costs and continued competition in home broadband.

H1 2026 Financial Performance

TPG reported service revenue of A$2,071 million for the six months ended 30 June 2026, increasing 0.5% from A$2,060 million.

EBITDA reached A$821 million, compared with statutory EBITDA of A$813 million in H1 2025, representing growth of 1.0%.

Against the pro forma comparative EBITDA of A$784 million, growth was 4.7%.

Statutory net profit after tax increased to A$35 million from A$32 million.

Underlying NPATA, which excludes acquired customer base Amortisation and material one-off items, reached A$70 million. This compared with A$69 million on a statutory comparative basis and A$17 million on a pro forma basis.

The different comparisons reflect changes arising from the Vocus transaction and should not be treated as interchangeable.

Mobile Services Drive Revenue Growth

Mobile service revenue increased 3.1% to A$1,224 million during H1 2026.

The mobile subscriber base expanded by 64,000 to approximately 5.81 million.

Growth was supported by Digital First brands and mobile virtual network operator partnerships.

Average revenue per user increased to A$35.21, up A$0.24 from the prior corresponding period.

Mobile gross Margin increased 4.2% to A$1,022 million.

Expanded regional network coverage also supported the company's mobile offering.

Future mobile Earnings will depend on customer acquisition, retention, pricing and network operating expenses.

Home Broadband Faces Subscriber Pressure

Home broadband service revenue declined 1.9% to A$827 million.

Gross margin decreased 4.5% to A$298 million.

Total broadband subscribers declined by approximately 42,000 to 1.94 million.

NBN subscriptions decreased to approximately 1.53 million, reflecting continued competition across fixed broadband services.

However, management reported moderation in NBN customer losses and a return to fixed wireless subscriber growth during the second quarter.

The company expects further improvement in broadband customer trends during H2 2026, although this remains dependent on market conditions.

Vocus Transaction Changes the Financial Structure

During 2025, TPG completed the sale of its fibre network infrastructure assets and selected enterprise, government and wholesale fixed-line operations to Vocus Group.

The transaction reduced the company's direct exposure to fixed infrastructure operations and supported repayment of approximately A$2.7 billion in bank borrowings.

Lower financing costs contributed to improved profitability and free Cash Flow during H1 2026.

However, new commercial arrangements following the transaction also introduced operating costs associated with network access and services.

Cash Flow, Debt and Dividends

TPG reported operating free cash flow of A$199 million, increasing 16.4% from the pro forma H1 2025 figure of A$171 million.

Free cash flow to Equity reached A$93 million, compared with a pro forma outflow of A$15 million.

Operating expenses remained nearly unchanged at A$508 million.

The company reported borrowings of approximately A$1,435 million and cash of A$55 million at 30 June 2026.

The board declared an interim Dividend of 10 cents per share, compared with 9 cents in H1 2025.

The dividend was 25% franked and was paid on 29 September 2026.

FY2026 Guidance and Operating Outlook

TPG reaffirmed full-year EBITDA guidance of A$1,665 million to A$1,735 million, excluding material one-off items.

Capital expenditure on an additions basis is expected to reach approximately A$750 million.

Management expects mobile customer growth, cost efficiencies and lower recurring capital expenditure to contribute to cash generation.

However, broadband competition and ongoing Investment requirements remain relevant to profitability.

Key Insights

TPG's H1 2026 results reflected mobile revenue growth, reduced financing costs and higher free cash flow following its Business restructuring.

Home broadband continued experiencing customer losses, despite early signs of improved subscriber trends.

Future performance will depend on mobile customer retention, broadband stabilisation, operating efficiency and delivery against FY2026 earnings guidance.