Getting cold feet, page-304

I think its useful to compare such asset values from a long term perspective, but i agree it can be misleading in the short-medium term. Especially as VOC and TPG are at different stages in the investment cycle.

TPG is definitely a well tuned operation, they have mature assets and have had good steady growth for years to take advantage of them. Im amazed at their EBITDA margins on broadband have held up this year, almost too good to believe. They have a higher EBITDA margin on broadband than corporate, broadband margin is half corporate for VOC.

TPG are spending money on new assets over the next few years, and earnings are expected to reduce which will bring their ROA down to earth.

VOC is heavy on assets that have >15 year lifespan (fibre, upcoming ASC), its going to take some years before the return on those assets peak.

Interesting look at TPG on fnarena https://www.fnarena.com/index.php/2017/09/20/outlook-dims-for-tpg-telecom/