TPG Telecom Ltd (TPG.AU) shares plummeted 5.19% during intraday trading on Friday, as investors reacted to the company's full-year financial results and forward guidance.
While the company reported FY25 revenue of AUD 5,041 million, beating the Ibes estimate of AUD 4,990 million, and announced a final dividend of 9.0 AU cents, the market focus appeared to shift to its outlook. TPG Telecom provided EBITDA guidance for FY26 in the range of AUD 1,665 million to AUD 1,735 million, representing only modest growth from the FY25 result of AUD 1,660 million.
Additionally, the company expects capital expenditure on an additions basis for FY26 to be AUD 750 million, a significant investment that may have concerned investors about future cash flows and returns relative to the tempered earnings growth forecast.