Going up: TPG posts bumper results
TPG has reported an increase in profits of 90% over the 12 months to December 2015, based on revenue growth of 84%.
While much of this growth reflects the TPG takeover of iiNet in July last year, it also confirms TPG’s position in the market as chief contender for the overall number 2 spot in the industry, now occupied by Optus.
TPG in fact has already outstripped Optus in some areas, with some 1.84 million fixed broadband subscribers as opposed to Optus’ 1.04 million.
And perhaps more worryingly for Optus, TPG appears to be winning the battle for NBN subscribers, with industry analysts estimating that its share of this market is nearly double that of its rival.
Of course TPG does not have its own mobile network and, with only 473,000 (resale) customers, remains well behind the majors in this section of the market. A fuller alliance with Vodafone, to whom TPG already supplies backhaul services, could however provide a platform for expansion in this area.
TPG’s rise is a reminder that even in a market likely to see further consolidation there is still space for a contender willing to take risks and make investments. Optus beware!
