I think it is a mistake to look at the accounting profit here. The accounting profit pales in comparison to the actual cash coming into this company because accounting profit takes into consideration non-cash items such as depreciation, amortisation and is lowered through the tax shield of interest expenses. But, the cash flow coming through this thing to borrow your expression mike68, is absolutely mind boggling.
The debt balance was higher than I expected by $20 million, but that's only because Toeh spent up big on PPE (and intangibles) this half compared to previously.
I don't know that I would exactly call that growth organic, I think that was mainly driven by the acquisition of APPT. It's valuable to TPG though, as the fibre connecting interstate will drive TPG costs down.
I also see Teoh has committed to capacity from the Southern Cross cable which is a first as far as I'm aware. That to me signals he is really serious about improving network quality. As a customer, I am impressed.
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