TPG shares soar after Teoh reassures investors

TPG shares jumped today following several months of decline, after the telco reassured shareholders it had plans to combat low profit margins from the national broadband network.

Its share price grew 8 percent to $7.30 in early afternoon trade following the telco's annual general meeting today.

The telco's stock had been declining since September - when its share price sat at $12.90 - due to what investors considered a weak earnings forecast in its full-year results and warnings about impending pressure on the group's profit margin during the transition to the NBN.

TPG is expecting to bring in EBITDA of between $820 million and $830 million for its full fiscal year, which would be a rise of 6 percent on last year.

Chairman David Teoh today acknowledged concerns about the declining share price but told investors the telco's performance to date was tracking well against its full-year forecasts.

He said TPG would use its vast infrastructure portfolio to combat lower margins as a result of the NBN, as well as continue its push to become a mobile service provider.

“We have ahead of us numerous exciting opportunities to consider and strategies to implement using our extensive infrastructure assets and other strengths which I am confident will continue to create excellent value for our shareholders over the long term,” Teoh said.

TPG posted a massive 69 percent rise in full year profit thanks to its $1.56 billion purchase of rival iiNet.