What happened to TPG Telecom (TPG) shares today?
TPG -12.39%: A weaker 1H result for the telco than we hoped and the share price is unfortunately reflective of that. Revenue of $2.19bn was around 2% light on while EBITDA was a 3% miss (excluding restructuring costs relating to the Vodafone merger). The miss was a result of lower Average Revenue Per User (ARPU) and higher costs. Not all bad news though, with a 9cps interim dividend while they added +135k new mobile users which was above company guidance of 120k for the half. They talked to a better 2H however they didn’t provide actual guidance which is the main issue, the market was looking for specific financial guidance and they failed to deliver. The share price was off sharply, and while it’s a big reaction, the stock had run into the result. We’ve unfortunately seen a nice profit evaporate in our position today, however, for now, we are inclined to hold the position.
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