Morningstar

Morningstar, Inc.

Equity Bottom-Up

Australian Competition and Consumer Commission's, or ACCC's, rejection of TPG Telecom's proposed merger with Vodafone Australia is a curious one. Despite pronouncements to the contrary since January 2019, the competition regulator appears adamant TPG will resurrect its ambitions to become a new entrant in the Australian mobile network space, if it cannot find a way to tie up with Vodafone
However, this could be a case of the ACCC calling a bluff that may not be. We have consistently been…

We increase our fair value estimate on TPG Telecom by 15% to AUD 7.00 per share, following the decision to abandon the Australian mobile network rollout. The uplift reflects the financial impact of the AUD 704 million savings on the balance owing on the 700MHz spectrum acquired in April 2017 and the elimination of assumed AUD 100 million in operating losses and AUD 670 million future capital expenditure associated with the venture.
Analyst: Brian Han

The Australian Competition and Consumer Commission's, or ACCC's, preliminary concerns regarding TPG Telecom's proposed merger with Vodafone Australia does not come as a surprise. The regulator's central tenet is that the deal will ensure the mobile industry remains a three-player market and that a player (Vodafone) will also be eliminated from the fixed-line broadband market. It is a view we have been stressing and is why we have urged investor caution not to assume ACCC clearance, let alone…

The 1% lift in TPG Telecom's fiscal 2018 normalised EBITDA to AUD 841 million was in line with management's guidance provided less than three weeks ago, with key performance indicators broadly in line with our expectations. Management's operating prowess was again evident, as the AUD 61 million fall in aggregate NBN-inflicted earnings and AUD 5 million in higher electricity costs were more than offset by continuing efficiency gains and a 6% rise in the corporate division's EBITDA to AUD 330…

The incumbents' aggressive response to TPG Telecom's pending entry as a fourth mobile network operator is an ominous sign for the narrow-moat-rated group.
In Australia, TPG's trial for an unlimited data plan that is speed-capped, limited coverage and with no mobile call capability, free for the first six months and AUD 9.99 per month thereafter, has led to an avalanche of more comprehensive unlimited data and mobile call offerings from Telstra, Optus, and Vodafone.
Analyst: Brian Han

Australia

TPG Corporation Limited operates as a telecommunications company. The Company provides diverse range of communication services to residential users, small and medium enterprises. Corporation Limited operates as a telecommunications company. The Company serves customers in Australia.