Vocus 1H20 update: Network Services and New Zealand perform well, Retail doesn’t

Network Services and New Zealand drive growth while legacy retail declines highlight a difficult transformation phase.

Nitish Kumar, PhD · Venture Insights1 February 2020Period: 1H208 min read

Last updated 8 June 2026

$179.3m↑

Vocus Group Underlying EBITDA (1H20)

11%↑

Network Services Underlying EBITDA Growth (1H20)

Locked

+1more stats

Companies covered:VocusNBN CoTelstraOptusSparkVodafoneTPGDodoCommander

Abstract

This report analyses Vocus Group's 1HFY20 results, highlighting a 1.6% increase in underlying EBITDA to $179.3m despite a 6.9% decline in statutory revenue to $901.9m. The performance reflects a stark divergence between the flagship Network Services segment, which saw 11% EBITDA growth, and the Retail division, where EBITDA fell by $11m due to legacy product erosion. The analysis evaluates the ongoing three-year transformation strategy and the impact of NBN migration on margins.

Key Takeaways

Group underlying EBITDA increased 1.6% to $179.3m, while statutory revenue fell 6.9% to $901.9m.
Network Services EBITDA rose 11% to $111.2m, driven by international capacity sales on the ASC.
Retail EBITDA plummeted 22% to $39.5m as legacy copper SIOs fell by 52.6%.

stakeholder implications · PDF download

Frequently Asked Questions

The strategy is yielding high-margin returns, with the Network Services segment generating 11% growth in underlying EBITDA. This performance, supported by a 5% increase in recurring revenue, successfully offset broader group revenue declines.

The retail division is in a sharp contraction, with revenue falling 12% as legacy ADSL and voice services erode. This is evidenced by a 52.6% collapse in retail copper SIOs during the half.

New Zealand remains a consistent growth engine, posting a 6% increase in both revenue and EBITDA. The unit is diversifying its product mix by launching fixed wireless broadband services through a wholesale partnership with Spark.

Vocus maintained a stable underlying EBITDA of $179.3m despite a 6.9% drop in statutory revenue. Management is aggressively reinvesting in the business, as shown by the 43.5% increase in CAPEX excluding ASC.

Vocus 1H20 update: Network Services and New Zealand perform well, Retail doesn’t

Abstract

Key Takeaways

Frequently Asked Questions

Unlock the full report

Free

Lite

Team