TPG Telecom (ASX:TPG) Operating Income: A$399 Mil (TTM As of Dec. 2025)

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ASX:TPG TPG Telecom Ltd ASX:TPG
60 GF Score
Price A$3.58
GF Value A$4.52
Valuation Modestly Undervalued
! 6 Warning Signs
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What is TPG Telecom Operating Income?

TPG Telecom ASX:TPG +0.28% 60 Operating Income is A$399 Mil as of Dec. 2025. GuruFocus rates ASX:TPG with a GF Score™ of 60/100 and a GF Value™ of A$4.52 (Modestly Undervalued). The stock has 6 warning signs investors should review.

TPG Telecom's Operating Income for the six months ended in Dec. 2025 was A$192 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2025 was A$399 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. TPG Telecom's Operating Income for the six months ended in Dec. 2025 was A$192 Mil. TPG Telecom's Revenue for the six months ended in Dec. 2025 was A$2,593 Mil. Therefore, TPG Telecom's Operating Margin % for the quarter that ended in Dec. 2025 was 7.40%.

Good Sign:

TPG Telecom Ltd operating margin is expanding. Margin expansion is usually a good sign.

TPG Telecom's 5-Year average Growth Rate for Operating Margin % was 11.60% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. TPG Telecom's annualized ROC % for the quarter that ended in Dec. 2025 was 0.00%. TPG Telecom's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2025 was 0.80%.


TPG Telecom  (ASX:TPG) Operating Income Explanation

1. Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

TPG Telecom's annualized ROC % for the quarter that ended in Dec. 2025 is calculated as:

ROC % (Q: Dec. 2025 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Jun. 2025 ) + Invested Capital (Q: Dec. 2025 ))/ count )
=384 * ( 1 - 100% )/( (18182 + 14383)/ 2 )
=0/16282.5
=0.00 %

where

Note: The Operating Income data used here is two times the semi-annual (Dec. 2025) data.

2. Joel Greenblatt's definition of Return on Capital:

TPG Telecom's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2025 is calculated as:

ROC (Joel Greenblatt) %(Q: Dec. 2025 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Jun. 2025  Q: Dec. 2025
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=46/( ( (3756 + max(3600, 0)) + (4143 + max(-1125, 0)) )/ 2 )
=46/( ( 7356 + 4143 )/ 2 )
=46/5749.5
=0.80 %

where Working Capital is:

Working Capital(Q: Jun. 2025 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(978 + 52 + 4232) - (783 + 0 + 879)
=3600

Working Capital(Q: Dec. 2025 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(203 + 91 + 100) - (1045 + 22 + 452)
=-1125

When net working capital is negative, 0 is used.

Note: The EBIT data used here is two times the semi-annual (Dec. 2025) EBIT data.

3. Operating Income is also linked to Operating Margin %:

TPG Telecom's Operating Margin % for the quarter that ended in Dec. 2025 is calculated as:

Operating Margin %=Operating Income (Q: Dec. 2025 )/Revenue (Q: Dec. 2025 )
=192/2593
=7.40 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

4. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the Operating Income growth rate using Operating Income per share data.


Be Aware

Compared with a company's EBITDA margin, Operating Margin can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin may decline. Often the Operating Margin declines well before the company's revenue or even profit decline. Therefore, Operating Margin is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia's Operating Margin had already been in decline since 2002, although its earnings per share were still rising. Investors who paid attention to Operating Margin would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.


TPG Telecom Operating Income Related Terms


TPG Telecom Operating Income Historical Data

* Premium members only.

The historical data trend for TPG Telecom's Operating Income can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

TPG Telecom Operating Income Chart

TPG Telecom Annual Data
Trend Jul16 Jul17 Jul18 Jul19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Operating Income
Get a 7-Day Free Trial Premium Member Only Premium Member Only 263.00 308.00 384.00 465.00 399.00

TPG Telecom Semi-Annual Data
Jan16 Jul16 Jan17 Jul17 Jan18 Jul18 Jan19 Jul19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24 Dec24 Jun25 Dec25
Operating Income Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 176.00 223.00 242.00 207.00 192.00
ASX:TPG
60GF Score
TPG Telecom Ltd ASX:TPG
Operating Income is just one metric. See GF Score™, valuation, warning signs, and more.
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TPG Telecom Operating Income Calculation

Operating Income, is the profit a company earned through operations. All expenses, including cash expenses such as cost of goods sold (COGS), research & development, wages, and non-cash expenses, such as depreciation, depletion and amortization, have been deducted from the sales.

Operating Income for the trailing twelve months (TTM) ended in Dec. 2025 adds up the semi-annually data reported by the company within the most recent 12 months, which was A$399 Mil.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Frequently Asked Questions Learn more about Operating Income →
What does a Operating Income of A$399 Mil mean?
TPG Telecom (ASX:TPG) has a Operating Income of A$399 Mil as of Dec. 2025. Operating Income equals sales less all operating expenses. It is linked to EBIT. View historical data on TPG Telecom and its competitors.
Is TPG Telecom's Operating Income too high?
TPG Telecom's current Operating Income is A$399 Mil. Overall, TPG Telecom has a GF Score™ of 60/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does TPG Telecom's Operating Income compare to VZ and TMUS?
TPG Telecom's Operating Income of A$399 Mil can be compared against companies in the Telecommunication Services industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Operating Income for a Telecommunication Services company?
A good Operating Income depends on the Telecommunication Services industry context. However, Operating Income should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Operating Income mean?
A high Operating Income can signal that a stock is expensive relative to its fundamentals. Operating Income equals sales less all operating expenses. It is linked to EBIT. View historical data on TPG Telecom and its competitors. TPG Telecom's current Operating Income is A$399 Mil. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is TPG Telecom stock overvalued right now?
Based on GuruFocus' analysis, TPG Telecom (ASX:TPG) is currently considered Modestly Undervalued. The stock's GF Value™ is A$4.52, compared to a current price of A$3.58 — trading 20.8% below its estimated fair value. The current Operating Income is A$399 Mil. TPG Telecom's overall GF Score™ is 60/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Income calculated?
Operating Income is calculated from a company's financial statements. For TPG Telecom (ASX:TPG), the current Operating Income is A$399 Mil as of Dec. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is TPG Telecom (ASX:TPG) Overvalued in 2026?

Based on GuruFocus' analysis, TPG Telecom stock appears to be undervalued. The current stock price of A$3.58 is trading 20.8% below its estimated GF Value™ of A$4.52. GuruFocus considers TPG Telecom to be Modestly Undervalued.

Key valuation signals for ASX:TPG:

  • Operating Income: A$399 Mil
  • GF Value™: A$4.52 vs. price of A$3.58 (20.8% below fair value)
  • GF Score™: 60/100 with 6 warning signs

No single metric tells the full story. See the ASX:TPG stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


TPG Telecom Business Description

Other Exchanges TPGTF:USA
Address 200 Barangaroo Avenue, Level 27, Tower Two, International Towers Sydney, Barangaroo, NSW, AUS, 2000
TPG Telecom is Australia's third-largest telecom services company. It offers mobile, fixed-line broadband and telephony solutions. The group's mobile business caters to all market segments spanning consumer, small business, corporate, wholesale, and government. TPG Telecom has grown substantially since listing on the ASX in 2008, via organic growth and acquisitions, and culminated with the July 2020 Vodafone Hutchison Australia merger, the third-ranked mobile network operator in Australia. It owns an extensive stable of infrastructure assets, including a nationwide mobile network that is upgrading to 5G wireless. In July 2025, TPG sold its fiber assets for AUD 5.3 billion to Vocus.
60GF Score

Get the complete analysis for ASX:TPG

Operating Income is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

A$3.58
Price
A$4.52
GF Value