Internet provider TPG Telecom Ltd
(ASX:TPM) has reported an increase in first half profit of over 400%, driven by broadband subscriber growth.
Net profit for the six months to January 31 was $27.5 million, up from $5.1 million in the same period a year before.
The company has upgraded its full year earnings guidance from $140 to $150 million to between $152 and $158 million.
Earnings before interest, tax, depreciation and amortisation for the period were $77.1 million, up 34% on the corresponding period prior.
Broadband subscriber growth increased strongly during the half year with net additions of 54,000 and 460,000 subscribers at March 2010.
At January 31, the group had accumulated cash reserves of $47.2 million after paying $17.6 million to acquire 2.8 million shares in Pipe Networks Ltd.
The cash reserves will be used to fund the acquisition of the remainder of Pipe Networks under a scheme of arrangement approved on March 17 and payable on March 31.
The company’s board has declared an interim dividend of 2 cents per share, fully franked, up from 1 cent.
TPG Telecom reported a profit of $17.66 million for the 12 months to July 30, 2009.
