** Analysts at Jefferies lower PT on Australia's TPG Telecom TPG.AX to A$5.5 from A$5.7; maintain stock rating at "hold"
** Brokerage notes telco has been heavily discounting in prepaid operations to gain more subscribers; flags guidance update better-than-expected due to cost-outs program
** Says net subscriber additions in postpaid business were underwhelming despite promotional activity and spend on marketing
** Adds co's fixed broadband business, which contributes around 23% of EBITDA, still remains an overhang
** TPG shares gained ~5% in early trade on Tuesday but later reversed course to end over 1% lower
** Co flagged lower annual earnings and said it would return A$3 bln ($1.94 bln) to shareholders; to maintain FY25 dividend at FY24 level
** Jefferies adds that issue with TPG's prepaid business is that segment has lower average-revenue-per-user (ARPU) than postpaid, where customers are generally hunting for value
** Stock up 22.49% YTD
($1 = 1.5454 Australian dollars)
(Reporting by Rishav Chatterjee in Bengaluru)
((Rishav.Chatterjee@thomsonreuters.com))
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.