TPG Telecom CEO and MD Inaki Berroeta unveiled a multi-year initiative to simplify its products and services, and streamline internal systems and platforms, with the aim to deliver net cash benefits of about AUD140 million ($90.5 million) annually from fiscal 2027.
In an earnings statement for its fiscal H1 2023 (ending 30 June), Berroeta argued the move to rationalise its brands and systems will make the company more nimble, strengthening its ability to deliver connectivity.
He predicted gains to be split evenly across capex and EBITDA from improved gross margins and lower operating costs.
The Australian operator will spend AUD15 million to AUD20 million annually over the next two fiscal years to implement the programme.
Its 5G network covered 80 per cent of the population after it upgraded about half of its 5,000 urban base stations.
Upgrades to the other 2,500 urban sites are scheduled to be completed by end-2026.
Net profit dropped 71.3 per cent year-on-year to AUD48 million due to a one-time tax benefit of AUD110 million in fiscal H1 2022.
Service revenue increased 4.5 per cent to AUD2.3 billion.
Mobile service revenue increased 8.4 per cent to AUD956 million.
Handset sales fell 5.3 per cent to AUD398 million.
Post-paid subscriber numbers rose 2.2 per cent to 3.2 million with ARPU up 6.2 per cent to AUD44.60.
Prepaid subscribers rose 8.6 per cent to 2.1 million, with ARPU falling 2.6 per cent to AUD18.90.
Capex was up 38.1 per cent to AUD670 million, with the full-year pegged at AUD1.2 billion.