Figure 1: ANZ Telco share price changes March 2025 

Source: Firehawk

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, though some challengers are doing better.

Swoop

Swoop’s stock plummeted 25% during March, despite some positive 1H25 results released by the company in late February. This release included revenue up 5% on the prior corresponding period to $45.8m and EBITDA up 12% on the prior corresponding period to $7.3m. Commenting on the results, Swoop CEO Alex West said “With the majority of the previous integrations completed, our continued strategy of simplifying our business with an automated and superior delivery model, as well as focusing on our key products has delivered massive growth in our recurring revenue base.” It is possible that the petering out of Swoop’s offer for Vonex in February weighed on investor sentiment. With a market capitalisation of around $25m Swoop is considered a micro-cap, and large swings in stock performance are not uncommon.

Megaport

Megaport’s stock dropped 12% in March, reflecting the broader technology sector sell off during this time frame. In late February, the company released its 1H25 results which included revenue up 12% on the prior corresponding period to $106.8m and EBITDA down 8.3% on the prior corresponding period to $27.6m. Operational highlights for the period mentioned were the ‘deployment of the 400G backbone to enable 100G VXCs from 597 data centres, making Megaport the largest 100G NaaS connectivity platform globally. The team deployed 82 additional data centres, four new IX locations, 25 new cloud on-ramps, and added two new countries, Brazil and Italy.’

Singtel

Singtel’s stock climbed around 6% in March. In late February the company released a positive December quarter business update which included modest YoY growth in revenue and EBITDA, while EBIT growth for the quarter was 6.2%. During March, Singtel announced that its Australian subsidiary, Optus has priced a $296m, 7-year fixed rate note which was issued on 24th March. The notes are to be used to fund Optus’ ordinary course of business and carry a coupon rate of 3.125%.

Figure 2: ANZ telco valuation multiples March 2025

Source: Firehawk

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