Dashboard containing:

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

Commentary

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.

Megaport

In the last month Megaport’s stock has launched over 50%, largely stemming from a positive quarterly activities report released in late January. This was reinforced in February when the company released its 1H FY24 results with revenue increasing 35% compared to the 1HFY23 to $95.1m, and EBITDA up over 700% compared to 1HFY23 to $30.1m.

Superloop

Superloop’s stock jumped around 43% in the last month. Strong 1H24 results saw revenue up 32.7% compared to the 1HFY23 to $197.6m, and EBITDA up 83.3% compared to 1HFY23 to $23.0m. The share price was further elevated on the 26th of February when Aussie Broadband submitted a non-binding indicative proposal to acquire 100% of Superloop through a scrip for scrip deal valuing Superloop at $0.95 cents per share. The proposal was swiftly rejected by Superloop’s board.

Aussie Broadband

Aussie Broadband’s stock is up around 23% in the last month, with positive 1H24 results, where the company saw a 17.7% increase in revenue compared to 1H23 to $445.9m, and EBITDA up 12.7% compared to 1HFY23 to $46.3m. Additionally, the company’s proposal to acquire 100% of Symbio was made legally effective after shareholder and court approvals occurred throughout February.