DASHBOARD: Telco valuation comps for June 2023

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

Overall, telco stocks in Australia and New Zealand are down over the last year, with wide spreads in performance among the group. Economic growth is expected to be sluggish relative to 2022, creating uncertain performance for telco equities.

TPG

TPG’s stock sank around 12% in June, after the decision by the Australian Competition Tribunal to block the regional agreement with Telstra Group Ltd. The deal involved Telstra allowing TPG to use around 3,700 of its regional mobile sites, increasing TPG’s regional mobile network sites by around five times.

Superloop

Superloop fell around 12% in June despite making no company announcements, shaving off small gains the stock made in May and April. The comparison index, being the S&P/ASX Small Ordinaries index also fell in June.

Swoop

Swoop’s stock had a welcome rebound in June, climbing 12.5% despite any price sensitive company announcements. The rebound may be attributed to the stock finding its support level after successive months of poor performance.