TPG (ASX:TPM) has confirmed Pipe Networks CEO, Bevan Slattery, has stood down just six months into his 12-month contract signed following the acquisition of Pipe in March this year.
Pipe’s chief operating officer, Jason Sinclair, has taken over management of Pipe’s overall operations. Sinclair joined Pipe in 2007 as COO.
TPG executive chairman, David Teoh, said Slattery’s early departure was due to the strength of Pipe’s management team which had allowed Slattery to “step back from executive duties earlier than expected.
“Bevan expressed his desire to move on during the middle of the year, and given the success of the integration we agreed to release him from his contract early,” Teoh said in an ASX statement.
Slattery claimed Pipe had managed to change the landscape of Australia’s telecommunications industry through the launch of its own submarine cable system, PPC-1.
The news of Slattery’s departure follows the release of TPG’s financial results for the year to 31 July 2010, which saw broadband subscribers increase to 500,000, and mobile and fixed lines subscribers hit 245,000.
According to the company, some 100,000 new subscribers were added in the last financial year, largely from the consumer sector. Some 22,000 active home phone subscribers were added since the offering’s launch in April 2010.
Revenues were $508.2 million, up six per cent from $481.2 million in the 2009 financial year.
Earnings before interest tax depreciation and amortisation (EBITDA) was $171.1 million, up 42 per cent from 2009’s $120.8 million.
Net profit after tax (NPAT) was $55.7 million, up 216 per cent from 2009’s $17.7 million.
Earnings per share was $0.078, up 192 per cent over 2009’s $0.026.
In February, TPG also announced it would go on a $70m capital raising path via a share placement, to reduce the group’s net debt following the proposed $350m acquisition of Pipe Networks.