AusBN - Telecommunications firm TPG Telecom has posted a first-half net profit just shy of AUS$200 million, falling 11% on previous year’s total.
In a statement, the firm said it experienced ‘significant headwinds’ which include the transitioning of many customers to lower margin NBN services.
Pre-tax earnings of $418 million for the six months to end of January was also a marked $55 million decrease on the same period of the previous year.
Taking into account its disappointing financial performance, TPG will pay its shareholders a fully-franked interim dividend of 2 cents per share, a quarter of last year's 8 cents dividend.
However, the company said its expansion of mobile services in Australia and Singapore is continuing to progress well.
"The projected capital expenditure on both projects remains in line with original forecasts. Small cell deployment in Australia is well underway with sites already installed in Sydney and Melbourne," said TPG in a statement.
TPG also upgraded its guidance for underlying pre-tax earnings to a range between $825-$830 million.