Telecom Plus (TEP) H1 2025 earnings summary

Executive summary

• Achieved 13% year-over-year organic customer growth to 1,078,318 as of September 2024, driven by a unique multi-service and partner-led model.

• Record performance in H1 FY25 with all-time highs in customer numbers, services, profits, and shareholder returns.

• Launched new offerings: EV charging tariff, ultrafast broadband, Apple Pay on Cashback Card, and reinstated insurance products after FCA review.

• On track for medium-term target of 2 million customers, with 10–15% annualized growth expected.

• FY25 guidance reiterated: 12–14% customer growth and £124–128m adjusted profit before tax.

Financial highlights

• H1 FY25 revenue was £697.8m, down 21% year-over-year due to normalized energy prices; gross profit rose 1.7% to £167.8m.

• Adjusted profit before tax increased 5.5% to £46.1m; adjusted EPS up 12.4% to 43.6p.

• Interim dividend increased to 37p per share; full-year dividend expected to rise at least 13% to 94p, with payout ratio targeted at 80–90% of adjusted net profit.

• EBITDA for H1 FY25 was £56.9m, up from £50.4m in H1 FY24.

• Net debt improved to £114.6m (0.8x EBITDA), supported by temporary favorable cash timing differences.

Outlook and guidance

• FY25 guidance for 12–14% customer growth and £124–128m adjusted PBT reiterated.

• Medium-term goal to double customer base to 2 million, with 10–15% annualized growth.

• EBITDA per customer expected to rise from mid-£120s to £130–£150 over time.

• Dividend payout ratio targeted at 80–90% of adjusted net profit, with full-year dividend expected to increase at least 13%.

• New opportunities in SME and EV segments expected to drive incremental growth from FY26.