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UPDATE 1-Australia's TPG Telecom sees heaviest NBN headwinds in 2020

Published 05/09/2019, 09:22 am
Updated 05/09/2019, 09:30 am
© Reuters.  UPDATE 1-Australia's TPG Telecom sees heaviest NBN headwinds in 2020
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(Adds details on full year results, context)

Sept 5 (Reuters) - Australia's TPG Telecom TPM.AX on Thursday said it expects to experience the greatest financial impact in full year 2020 from customer migration to a state-owned broadband network.

The telco said the combined headwinds from residential Digital Subscriber Line - a type of broadband internet - and home phone customers moving to the National Broadband Network (NBN) are expected to be around A$85 million ($57.4 million).

TPG said it expects to have less than 15% of its residential broadband customer base remaining on Asymmetric digital subscriber lines - a variant of broadband communications technology - by the end of full year 2020.

Earlier this week, TPG's larger rival Telstra TLS.AX raised its 2020 core earnings range guidance slightly, anticipating that the worst impact of the NBN rollout would occur later than previously expected. reported a fall of about 13% in annual underlying profit at $376.2 million.

Annual profit including one-off items fell more than 56% to A$173.8 million, hurt by an impairment charge of about A$237 million on the company ceasing the rollout of its Australian mobile network in January.

TPG is currently fighting a case challenging the anti-trust regulator's move to block its about $10 billion merger with Vodafone's VOD.L local joint venture. declared a final dividend of 2 cents per share.

($1 = 1.4806 Australian dollars)

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