TPG profits slide in half-year results

TPG Telecom, the group operating Vodafone and iiNet, will be simplifying its brand portfolio with a target to drop its plans and products from 6,000 to about 100.

The group advised the market of its half-year results for the six months to June 30 2023, reporting a $48 million net profit after tax compared to $167 million recorded in the same period last year.

The net profit after tax in HY22 included a one-off tax benefit of $110 million in July 2022, TPG said.

TPG announced it has moved into a multi-year program to simplify its brand portfolio, rationalise products and customer journeys, increase digitisation and streamline internal systems and platforms.

"Designed in accordance with our ambition to be Australia's best telco, the streamlining of our products, services and platforms will make us leaner, nimbler, and further strengthens our ability to deliver the simple, great value connectivity services our customers need,” TPG chief executive Inaki Berroeta said.

The group’s investor presentation shows the proposed simplification aims for a lower cost-to-serve and improved customer experience, with about $140 million cash benefits per year from FY27.

This includes targeting about 100 plans and products, down from about 6,000.

TPG Telecom provides telecommunications services to its customers in Australia through brands including Vodafone, TPG, iiNet, AAPT, Internode, Lebara, and felix.

In its half-year results, TPG reported a service revenue of $2.3 billion, up 4.5 per cent on HY22.

Its earnings before interest, tax, depreciation and amortisation increased 12.4 per cent to $941 million.

Mr Berroeta said TPG's focus on executing against its growth and transformation priorities had produced another set of solid results.

"We expect to deliver a strong full-year performance as we drive growth across the business, accelerate simplification for our customers, and deliver value to shareholders," he said.