Vocus held its strategy day on 3^rd July 2019, detailing its efforts to turning around its business units.

Its core Network Services and Retail units require substantial investment to stimulate revenue and market share growth. Vocus has identified mobile and its subsea cable assets as key drivers for growth.

After two unsuccessful merger attempts in the last month, Vocus needs to ensure it can transform the company.

Vocus has reaffirmed its current state within a three-year turnaround for the company, aiming to deliver sustainable profits from FY20 onwards. The overall telco market is facing challenges across all segments – enterprise is due to be disrupted by nbn’s entry; consumer broadband margins already being squeezed by nbn pricing and becoming unsustainable for smaller RSPs; mobile increasingly competitive as data capacities are reaching unlimited and unique product differentiations needed to attract customers and reduce churn. Despite the challenges, Vocus expects to meet its FY19 guidance figures, reaching between $350-$370m underlying EBITDA.

Contents

Vocus – long road ahead for turnaround

• Vocus Network Services
• Vocus Retail
• Vocus New Zealand

So, what does this all mean?

• EQT and AGL failed bids

List of charts/tables

Figure 1. Vocus Group business units

Figure 2. Vocus nbn partnership strategy

Figure 3. Vocus wholesale market segments

Figure 4. Vocus Retail brands and products

Figure 4. Vocus Retail brands and products

Figure 5. Vocus NZ brands and strategy