Billion-dollar TPG flags iiNet 'product refreshes'

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Billion-dollar TPG flags iiNet 'product refreshes'

TPG has shown its financial muscle with 30 percent growth in revenue, profits and earnings for the fiscal year just completed, even before iiNet came on to its books.

The telco raked in $224.1 million of net profit for the year ending 3 July, up 31 percent from last year's $171.7 million.

After falling just short of the billion mark last year with $970.9 million, revenue was also up by the same percentage and cracked ten-figures, hitting $1.27 billion.

Executive chairman David Teoh announced that the 2015 results meant "the seventh consecutive year of strong growth" for the internet service provider.

Corporate vs consumer 

The corporate business was the major contributor to the company's growth in 2015, with revenue from that segment up by $234.8 million to hit $642.5 million. That represents a whopping 58 percent yearly boost, although the company did note that it had not held AAPT for the entirety of the 2014 financial year.

The consumer business saw an 11.5 percent improvement in 2015, reaching $628.1 million. TPG gained 31,000 new ADSL customers and 42,000 NBN subscribers during the year.

What next for iiNet?

The balance between consumer and corporate sales may again shift with the blockbuster $1.56 billion acquisition of iiNet completing earlier this month, although Teoh declined to make any specific forecasts.

"The directors anticipate continued organic growth for the group in financial year 2016," he said. "However, as only a few weeks have elapsed since the completion of the acquisition of iiNet, it is not yet possible to forecast with sufficient certainty the likely financial results for the combined group for the year ahead."

TPG, in its results presentation, stated that a new $79.99 broadband bundle released last Thursday would be the "first of many iiNet product refreshes", although the group again committed to retaining iiNet, Internode and Westnet as separate brands.

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