SYDNEY--TPG Telecom declared a stronger-than-expected interim dividend as the Australian telecommunications operator lifted first-half earnings by 1% and maintained its annual guidance.

The operator of the Vodafone Australia brand on Friday reported earnings before interest, tax, depreciation and amortization for the six months through June of 821 million Australian dollars, equivalent to US$584 million.

The rise was on a continuing-operations basis, stripping out impacts from last year's sale of much of its fixed-line operations to privately held Vocus.

Further adjusting for new commercial arrangements with Vocus, Ebitda rose by 4.5%. That compared with an average analyst forecast of A$820.4 million, according to data compiled by Visible Alpha.

TPG said it still expects full-year Ebitda of between A$1.665 billion and A$1.735 billion, on a fully adjusted basis. Analysts are looking for A$1.70 billion, according to Visible Alpha data.

The board raised the interim dividend to A$0.10 a share, from A$0.09. Analysts had been looking for A$0.094.

The company said it planed to further increase dividends as profit and cash flows grow.

"With clear strategic foundations in place, we remain focused on delivering sustainable long-term value," Chief Executive Inaki Berroeta said. "TPG Telecom is well-positioned for the years ahead as we deliver ongoing growth in free cash flow, earnings per share and return on capital."

Continuing-operations revenue edged 1% lower to A$2.43 billion. Mobile service revenue rose 3.1% to A$1.22 billion as the number of subscribers rose by 64,000 over the period to 5.8 million, missing June's guidance for first-half growth of between 70,000 and 80,000 users.

TPG said growth was supported by its network-sharing agreement with Singapore Telecommunications-owned Optus, which launched in 2025 and expanded its reach beyond Australia's major cities and into regional areas.

Average revenue per mobile user rose by 0.5% to A$48.75 a month.

TPG reported a continuing-operations net profit of A$35 million, compared with A$32 million a year earlier. On a statutory basis, net profit fell 43%.