TPG stake dwindling

CITY-FOCUSED TPG Telecom is losing market share as the national broadband network rollout accelerates, investment bank UBS says.

The telco may have shed more than 1 per cent of market share in the year to December, thanks to the regional focus of the NBN rollout, UBS analyst Tom Beadle said.

Data collated by the competition watchdog suggests TPG, with a metropolitan skewed subscriber base of 1.9 million fixed-line broadband subscribers, may have lost even more market share in the June half – largely due to higher broadband penetration in regional areas.

Consequently, UBS has downgraded the company’s earnings forecast for the 2017-18 financial year and valuation from $6.00 to $5.75 a share. TPG shares closed yesterday at $5.28, down 4¢.