DASHBOARD: Telco valuation comps for November 2024
- Publisher : Venture Insights
- Publish Date : December 1, 2024
This Telco Valuation Comps report provides a comprehensive analysis of key financial metrics for telco stocks listed in Australia and New Zealand (ANZ). It includes detailed visualisations of monthly and annual share price movements, key earnings multiples, and forward earnings multiples compared to forward growth estimates. Additionally, it tracks share price trends over the past twelve months, offering valuable insights for market participants.
Figure 1: ANZ Telco share price changes November 2024
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.
Superloop
Superloop’s stock increased by 14.9% over the last month with the company releasing its 2024 Annual General Meeting presentation, including its FY25 outlook. Superloop anticipates revenue growth of between 53-62% and underlying EBITDA of $83-88m for FY25. In FY24, the company recorded 30% revenue growth (from $420.5m of revenue) and $54.3m of underlying EBITDA. The presentation highlighted a strong trading update for the first four months of FY25, with the company adding 182,000 customers (partly due it its winning Origin’s wholesale business from Aussie Broadband this year) and approaching 6% nbn market share during this period.
Megaport
Megaport’s stock rose 15.9% over the last month, with the company releasing the CEO’s address from the 2024 Annual General Meeting. The company reaffirmed its full year guidance of FY25 revenue between $214-222m and EBITDA of $57-65m. The address highlighted new connectivity solutions the company has released which is helping it capture the ‘unprecedented pace’ of data centre growth fuelled by ‘AI and cloud demand’. On FY26, the address mentioned that ‘early trends are indicative of a continuation of this revenue growth trajectory into FY26’.
Singtel
Singtel’s stock fell by 3.9% during the last month, with the company releasing FY25 first half year results. Included within was Optus’ financial performance for the half year, delivering $4.0b of revenue, 0.1% higher year on year, and EBIT of $223m which was 58% higher year on year. The release pointed to 80,000 new subscribers of the Optus mobile customer base, including strong prepaid growth. Evident was the company’s focus on cost management with operating expenses falling 2.5% year on year, helping to drive the company’s stronger profitability.
Figure 2: ANZ telco valuation multiples November 2024
Source: Firehawk
About Venture Insights
Venture Insights is an independent company providing research services to companies across the media, telco and tech sectors in Australia, New Zealand, and Europe.