DASHBOARD: Telco & ICT sector financials

Dashboard containing:

• Monthly and annual share price movements for main listed stocks
• Key earnings multiples
• Forward earnings multiples vs forward growth estimates
• Share price movements tracked over last twelve months

Commentary

Key developments

The IT sector has generally performed poorly over the last year, with a few exceptions. We seem to be seeing a level of skepticism about growth strategies, and more emphasis on consistency in delivering revenue and profit. Despite this, declines have flattened or reversed in recent months as the uncertainty now seems to been factored in.

Megaport

Megaports quarterly results fell short of investors expectations resulting in a large scale shedding of value from its share price. Despite increased EBITDA for the quarter, the results were not enough to appease investors who are bearish on the future outlook of the industry.

Pentanet

Pentanet had a downturn in February similar to what it has experienced in prior months, with the company loosing the majority of its value over the course of the last year. Despite the company growing revenues, investors have taken a souring view to unprofitable technology stocks and the broader industry as a whole.

Superloop

Superloop released its H1 FY23 results in February which entailed growing revenues and EBITDA than the prior corresponding period, however, the company has failed to return a positive Net Profit After Tax. This in conjunction with investors souring view of loss making technology companies has led to poor share price performance for the month.

Aussie Broadband

Aussie Broadband released its H1 FY23 results in late February, with a positive reaction from investors. The company posted favorable financial performance with revenue growth and improved profitability. This comes as company has experienced a major sell off in the past 12 months as investors shy away from growth stocks.