Internet provider TPG Telecom's golden run is set to continue as the company looks to lift earnings by a quarter over the next year.
Strong growth from its consumer and commercial divisions drove TPG's net profit up 15 per cent to $171.6 million in the year to July 31.
Underlying earnings jumped 24 per cent to $363.6 million, easily beating TPG's own expectations $340-$355 million.
TPG expects more of the same for its 2015 fiscal year, with an earnings target of between $455 million and $460 million.
Analysts say the result was another sign of the strength of Australia's telecommunications sector.
Telco stocks have been on a tear in recent years and none more so that TPG, which has seen its share price climb five fold since the start of 2012.
"It just goes to show that an investment in infrastructure and an investment in technology in Australia will pay dividends," 100 Doors managing partner Peter Esho said.
"We've seen that with Telstra, we've seen it with TPG now, we've seen it with M2 Telecommunications and we've seen it with Vocus."
TPG shares were up by 34 cents to $6.94 at 1203 AEST on Tuesday.
Mr Esho said the move in the share price was relatively muted compared to TPG's result.
"They are probably a victim of their own success in that the share price has run up so hard," he said.
TPG's consumer division added 77,000 broadband subscribers during the year.
Meanwhile, underlying earnings from the corporate division rose 20 per cent, thanks to subscriber growth and higher margins.
The company's AAPT subsidiary recorded underlying earnings of $38.2 million, which was ahead of guidance.
TPG EARNINGS SOAR
* Net profit of $171.7m, up 15 pct from $149.2m
* Revenue of $970.9m, up 34 pct from $724.5m
* Fully franked final dividend of 4.75 cents a share, up from four cents
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