Traders should consider applying a stop loss below the recent pivot low of $4.81 or on a break of $5.06.
TPG offers solid free cash flow with an improving dividend story into FY22 and FY23.
12/6 Update: We continue to hold TPG and suggest traders stick with the trade as long as the price action remains above the 10 day average. The stock is now up over 10% since our entry condition was met earlier this month.
As the merger was effective for accounting purposes from 26 June 2020, TPG Telecom’s reported results for 2020 include a full twelve months of TPG Telecom Limited (formerly named VHA) and a contribution of six months and four days from TPG Corporation Limited (formerly named TPG Telecom).
Reported revenue for the year increased 24% from 2019 to $4.35 billion and reported EBITDA increased by 18% to $1.39 billion. We reported NPAT of $734 million, which includes a one-off, non-cash credit to income tax expense of $820 million.
In the first six months post-merger, the Group has generated $342 million of net cash flow. The TPG Telecom Board resolved to pay a final dividend for 2020 of 7.5 cents per share.