Figure 1: ANZ Telco share price changes October 2024

Key developments

Telco stocks in Australia and New Zealand have seen wide spreads in performance over the last 12 months. Economic growth is expected to remain sluggish relative to previous years, creating uncertain performance for telco equities.

Swoop

Swoop’s stock was flat over the last month, with mixed announcements including the company’s counter offers against MaxoTel to acquire Vonex. These scrip counteroffers have thus far failed to capture the support of Vonex’s board in favour of MaxoTel’s all cash offer. However, Swoop also released its Q1 FY25 results, which showed strong recurring revenue growth up 15% compared to a year prior.

TPG

TPG’s stock declined nearly 8% during the last month, with the company announcing that it has agreed to sell its fibre network infrastructure assets and Enterprise, Government and Wholesale fixed business (including Vision Network) to Vocus Group for an enterprise value of $5.25b including a potential $250m contingent value payment. Vocus will provide fixed network services back to TPG as a part of the transaction terms. Completion is expected in the second half of 2025. TPG anticipates the transaction will deliver net cash proceeds to the company of $4.65-4.75b which the company intends to use to support “future capital management and business investment initiatives”.

Superloop

Superloop’s stock has risen over 13% in the last month, despite the company not releasing any price sensitive announcements. The stock has climbed 220% over the last year with investors attracted to its strong growth prospects as it challenges incumbent telcos in the fixed broadband market.

Figure 2: ANZ telco valuation multiples October 2024

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