Vocus Profit Drops 17 Percent
Australia’s current No 4 telco Vocus has posted a 17 percent drop in net profit for the year to June 30. Net profit after tax came in at $127 million, while revenue for the year totalled $1.89 billion,.
Having hit highs of $9.41 a share in May 2016, Vocus’s stock has slipped dramatically since then, weighed down by the poorly executed merger of the Vocus and M2 business. Vocus shares were trading at $2.56 yesterday.
CEO Kevin Russell yesterday admitted the company’s market share is low, considering its extensive fibre and network infrastructure assets.
“Our priority is to leverage these assets to maximise profitable growth within our core Australian and New Zealand infrastructure-focused business,” he said. “Our target is to double revenue from these businesses over the next five years.”
Russell noted that construction of the company’s 4600km Australia-Singapore cable is complete and should be ready for service in mid- September.
So far, he said, Vocus has sold more than 2.5Tbps of capacity on the system, including some to “a major global OTT customer”.
Vocus shares closed unchanged at $2.75 on the ASX yesterday.