TPG boasts 54,000 broadband subscriber increase

Company posts strong financial results as it looks to finalise Pipe Networks acquisition

TPG Telecom (ASX: TPM) is boasting an increase in broadband subscribers of 54,000 for the six months to 31 January, 2010.

The increase takes TPG’s total number of subscribers to 460,000 (as of March) and comes as the company reported a 443 per cent increase in after tax profits for the same period.

In July 2008 TPG reported a subscriber total of 300,000 and has steadily increased this number since.

In a statement to the ASX, TPG said it achieved a net profit after tax of $27.5 million and an increase in earnings before interest, tax, depreciation and amortisation (EBITDA) of 34 per cent to $77.1 million for the six months to 31 January.

TPG will use its cash reserves of $47.2 million and $66.2 million raised in February through an institutional placement and share purchase to pay for the remaining Pipe Networks shares, which it announced it would acquire in November 2009.

In March, 94 per cent of Pipe shareholders gave approval for the acquisition. The deal will hand TPG an extensive dark fibre network between the eastern states of Australia, including the Pipe Pacific Cable (PPC-1) link between Sydney and Guam.

TPG directors also upgraded the company’s EBITDA guidance from $140-150 million to $152-158 million for its full financial year.

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