TPG Telecom is to axe 19 enterprise, government and wholesale products this year, with eight shuttered in the past six months.
The decision came despite the division’s “resilient” half-year results in a “challenging market”, with overall revenue reaching $492 million, a fall of 4.4 percent year-on-year.
The revenue fall came directly from TPG’s Vision Network wholesale brand, whose revenue fell by 37 percent year-on-year to $36 million, reflecting its failure to attract new customers and Retail Service Providers (RSPs) in January.
Lat year, Vocus made a non-binding $6.3 billion bid for certain fixed infrastructure assets owned by TPG, which fell through.
However, TPG confirmed “non-exclusive discussions” have recently taken place with Vocus once again.
The ASX-listed telco’s latest business transformation efforts have seen it decommission seven IT systems and move three applications into the cloud.
TPG has been undergoing a multi-year program to simplify its business, increase digitalisation and streamline systems and platforms.
In the last financial year, TPG decommissioned 43 systems and moved 37 applications to the cloud.
In its latest half-year results for 2024, TPG said it is planning to migrate 40 applications to the cloud by the end of the year.
TPG said its IT operating expenditure would remain around the previously forecasted $15 million to $20 million in both FY24 and FY25.
TPG, which posted a net profit after tax of $29 million, also revealed it had cut 120 roles across its business in a move that will deliver $20 million in annualised savings in FY25 [pdf].
The restructuring will incur costs of between $7 million and $9 million in the second half of the financial year.
Internet business
During an investor briefing, TPG said its 11-year regional spectrum and mobile network infrastructure sharing deal with Optus was on track to be operational by 2025.
TPG also announced the signing of a “landmark deal” with US-based Lynk Global to begin trialling “direct to cell” messaging with low-earth orbit satellites by next year.
In mobile, TPG inked a mobile virtual network operator (MVNO) contract with Lycamobile, gaining 98,000 new subscribers.
Overall, TPG’s mobile subscriber numbers sat at 5.5 million across both pre-paid and post-paid by the end of the six-month period.
The company’s fixed broadband subscriber base sat at roughly 2.1 million in the half year, a fall of 78,000 from the previous corresponding period.
Fixed NBN felt the loss the most, shedding 85,000, while Vision Networks lost 19,000. However, on-net fixed wireless gained 36,000 subscribers, which offset the overall loss.
TPG added that its national 5G rollout remains on schedule, with more than 3400 mobile sites upgraded to 5G.
Upgrades to the rest of TPG’s metropolitan sites are scheduled to be complete by the end of 2026.
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