Strong broadband growth boosts TPG profit

Strong growth in broadband subscribers has boosted TPG Telecom's full year profit by 40 per cent as the telecommunications provider completes its acquisition of IntraPower in fiscal 2012.

Net profit for the 12 months ending July 31 was $78.2 million, up from $55.7 million for the previous corresponding period, the Sydney-based group said in a statement.

"Strong organic subscriber growth in the group's core consumer broadband business has continued with a net increase in the year of 59,000 subscribers," TPG said in a statement on Tuesday.

"The On-Net broadband and home phone bundle has continued to be the major growth driver, adding 98,000 subscribers during the year."

TPG said its PIPE Networks business had continued to grow strongly and its network rollout for the Vodafone Hutchison Australia contract was "progressing well" to schedule.

In the first quarter of fiscal 2012, the group will complete its acquisition of 100 per cent of the shares in cloud computing provider IntraPower Limited which is building two server farms to service 33,000 desktops.

TPG Telecom's revenue was up 13 per cent at $574.5 million, from $508 million.

Shares in TPG were two cents, or one per cent lower, at $1.45 by 1242 AEST in line with a broader market decline.

The company declared a final dividend of 2.25 cents, fully franked.

Earnings per share were 10.1 cents, up 33 per cent from 7.6 cents in the previous year.

The group's $360 million syndicated debt facility agreement expires in March 2013 and it is making $20 million payments per quarter.

It also says it has a $48 million debt facility available.

TPG's executive chairman, David Teoh, holds a 36 per cent stake in the group while investment firm Washington H Soul Pattinson and Co holds a further 27 per cent.

The group was formerly called SP Telemedia Ltd and in 2008 acquired all interest in TPG Holdings Ltd and joined the TPG and Soul brands.

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