TPG Telecom has reversed customer slippage at iiNet, despite ongoing criticism around the WA-founded unit’s service levels and broadband speeds.
The subsidiary drove an 11 per cent rise in TPG’s profit to $220 million in the six months to January 31, as it regained the broadband customers lost after its $1.6 billion takeover by TPG in August 2015.
Its total broadband customer base improved 7000 to 990,000 during the half-year, as the number of customers using National Broadband Network services rose 57,000, offsetting falling use of its ADSL products.
Profits at iiNet rocketed 27.5 per cent to $141.7 million before interest, tax, depreciation and amortisation to make up 34 per cent of TPG’s group earnings, against 30 per cent previously.
Group revenue of $1.23 billion, up from $1.15 billion, included $541.3 million from iiNet.
Complaints from iiNet customers of reduced service and slow broadband speeds have dogged Sydney-based TPG since the purchase of the WA group.
Last year, the Telecommunications Industry Ombudsman cited a “significant” 48 per cent increase in complaints about iiNet’s internet services following the acquisition.
At the time, TPG blamed the spike in complaints on a clampdown on iiNet’s previously “generous” credit policy, the roll-out of the NBN and service disruptions sheeted home to Telstra.
However, social media remains awash with regular complaints about iiNet, many from customers lamenting the long telephone wait times for customer support.
Investors in TPG, however, welcomed yesterday’s financial results, marking the company’s shares 36¢ higher to $6.98.