From Lucy Battersby:
The market has fallen out of love with telco company TPG….
The cut-price telco beat guidance by just $300,000 when it has a history of beating guidance by tens of millions of dollars.
It has also forecast earnings growth of 7 per cent this year, the lowest growth forecast in seven years.The reasons for the soft result include plans for more capital expenditure than usual, its future profit margins are likely to be squeezed on the NBN, and there are few obvious acquisitions left after swallowing up iiNet and AAPT in recent years…..
Source: TPG shares drop more than 20 per cent on disappointing forecast