The share price of TPG Telecom Ltd [ASX:TPM] has made ground, rising 6.8% today. It came as the company released its full-year earnings and outlook.
How did TPG Shares Fare?
The giant telco was fairly guarded in its final report. Which might seem strange as they reported a net profit of $413.8 million, up 9% from 2016’s results.
However, the biggest news was the company’s stance on dividends. The final dividend payout was just 2 cents, down 73% compared to this time last year.
TPG is nervous about the pressure from the NBN rollout. They believe that it could impact growth into next year. This fact, as well as their own ongoing mobile network rollout in Australia and Singapore, led TPG to the decision to hold on to profits.
What does the future hold for TPG?
The company is firmly focused on finalising their mobile networks. Having already secured several partners, the project is progressing well. Key to the future of this network is their planning for long-term 5G capabilities.
Meanwhile, TPG’s Singapore project is well on track. They’re hoping to achieve nationwide outdoor service coverage by December 2018. Everything seems to be going according to plan. Though investors will no doubt be hoping for better dividend payouts in the future.
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Junior Analyst, Money Morning