TPG's broadband growth hinged on bundles

TPG has reported a gain of 36,000 broadband customers in the six months ending January 31, 2014, with 61,000 customers opting for a bundled home phone and ADSL2+ plan.

This helped offset a decline of 16,000 on-net ADSL customers, and 9,000 off-net ADSL customers, bringing TPG's total broadband customer base to 707,000 users. TPG also added an extra 10,000 mobile subscribers for the six months, up to 370,000 mobile subscribers in total.

Underlying equity before interest, tax, depreciation, and amortisation (EBITDA) for the consumer division was up AU$14.4 million for the half to AU$100.2 million. TPG said this was driven through the organic growth in broadband subscribers, and an increase in average revenue per user for those taking up bundles.

In total, TPG reported a net profit after tax of AU$90.1 million, up 15 percent year-on-year.

In the half, TPG acquired business rival AAPT, and announced plans to use its own fibre networks in Australia's capital cities to build out fibre to the basement services to 500,000 apartments and businesses. There is increased speculation the company now has another rival in its sights, with iiNet CEO Michael Malone's departure from iiNet raising questions over whether TPG will seek to buy out the telecommunications giant.

iiNet chairman Michael Smith said last week that TPG was a very different business to iiNet, and indicated that TPG would have to take that into account in any takeover bid.

"If they have an interest in acquiring us, that is a decision they would make. Naturally enough...our intention is to grow this business and reward the investors who are in it. People who might be interested in trying to take control of it would need to look at the financial implications of doing that to a high-performing business."