19/09/2024 09:26

TPG Telecom Ltd (TPG) $4.91

We have avoided TPG for well over two years, and although the outlook has improved, it is unlikely to be on our Hitlist in 2024. TPG, like TLS, is planning job cuts, although not of the same magnitude, as the telco group, which is carrying more than $4 billion in debt, endeavours to reduce its expenses. TPG’s latest net profit came down 40% YoY due to rising costs from leasing agreements and high interest rates; trimming its workforce by 2-3% will help, but not meaningfully.

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19/04/2024 09:17

TPG Telecom Ltd (TPG) $4.25

TPG has made fresh all-time lows this week and is currently sitting down -17.8% year-to-date. Note that statistically, buying stocks making a new low is a dangerous game. TPG is not a quality stock, with margins under pressure from increasing competition and debt/interest issues looming. Our stance hasn’t changed; we prefer TLS for income and ABB for growth, with TPG simply in the “too-hard basket.”

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14/03/2024 08:51

TPG Telecom Ltd (TPG) $4.57

TPG delivered another poor result in February, with margins under pressure from increasing competition and debt/interest issues. Our stance hasn’t changed; we prefer TLS for income and ABB for growth, with TPG simply in the “too hard basket.”

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26/02/2024 16:46

TPG Telecom (TPG) $4.93

TPG -8.02%: A poor FY23 result today for the telco as increasing competition and a high debt burden bite. Revenue of $5.54bn was up 2% YoY but below $5.59bn consensus, however softer margins hurt earnings (EBITDA), which came in at $1.87bn v $1.92bn expected. They declared a 9cps fully franked dividend.

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14/11/2023 09:28

TPG Telecom Ltd (TPG) $4.81

TPG was the worst-performing stock on the ASX200 on Monday, ultimately closing -11.7% lower after data services business Vocus abandoned its $US4.2bn bid for TPG fibre assets - there has been a noticeable trend of suitors walking away from deals of late. TPG has said it will keep exploring its options and has strong interest from other outside investors, although the price/deal might not be as attractive.

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22/08/2023 09:36

TPG Telecom Ltd (TPG) $5.37

TPG surged higher at the start of August after announcing its in talks to offload assets to Macquarie Asset Management’s Vocus Group for a healthy $6.3bn. The TPG Board has granted Vocus Group a period of exclusive due diligence, currently set to expire on 6 September 2023. Under the proposed deal, TPG would be retaining its Consumer business, mobile wholesale and active mobile infrastructure while some of the monies received could be used for a special dividend after strengthening their balance sheet – best guess would be 10-25c.

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22/06/2023 09:23

TPG Telecom Ltd (TPG) $5.26

TPG fell -5.4% yesterday following the tribunal’s decision to uphold the ACCC’s original ruling, although it did bounce well off of its $4.96 low. The market was clearly optimistic about the deal with Telstra to share the network in regional areas of the country. The company maintained FY23 guidance which now includes $20-25m in one-off costs, the stock fell following the release which is logical as it’s now facing a significant infrastructure bill to build out its regional offering, though these plans are likely to take time and their cost is the big unknown at this stage, with history telling us there are always risks of a blowout in costs with undertakings such as these.

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21/06/2023 16:58

TPG Telecom (TPG) $5.26

TPG -5.4%: struggled today after failing to overturn last year’s ACCC decision to deny an agreement with competitor Telstra which would have seen the two share the network in regional areas of the country.

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28/02/2023 09:13

TPG Telecom Ltd (TPG) $5.00

TPG was the ASX200’s best-performing stock yesterday rallying +5.9% on a day when over 80% of the market fell. The stock rallied on Monday after delivering a strong result which saw $140mn in cost savings through business synergies while the average revenue per user rose +1.9% plus guidance was ahead of consensus expectations. This $9.3bn business is forecast to yield 3.5% fully franked over the coming 12 months which is useful but not as attractive as its larger rival.

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18/11/2022 09:01

TPG Telecom Ltd (TPG) $4.88

TPG was thumped in August after delivering a disappointing result and in today’s tough market the stocks showed little ability to recover. TPG is trading on 6.5x FY23e EBITDA which is at a 6% discount to TLS on 6.9x, despite offering higher free cash flow yields at 9.3% versus TLS at 5.4%. TPG is also forecast to pay a similar dividend yield...

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