Question 1

Is the pivot from legacy copper to NBN services working for the retail division?

Accepted Answer

The transition is currently loss-making in terms of volume, as the 53% decline in legacy copper SIOs significantly outpaced the 15.5% growth in Australian Retail NBN SIOs. This imbalance contributed to a 12% decline in Retail EBITDA, despite successful efforts to grow NBN retail ARPU.

Question 2

Which business units are currently driving the company's valuation?

Accepted Answer

Network Services and New Zealand are the primary growth engines, with Network Services delivering 11% EBITDA growth and 5% recurring revenue growth. The New Zealand division remains a consistent performer, posting 6% increases across both revenue and EBITDA.

Question 3

How is the company managing its capital intensity and infrastructure investment?

Accepted Answer

Vocus is aggressively reinvesting, evidenced by a 43.5% increase in CAPEX excluding the Australia-Singapore Cable. While statutory revenue fell 6.9% to $901.9 million, this investment strategy supported a 1.6% growth in underlying EBITDA to $179.3 million.

Question 4

What is the status of the mobile strategy across the Tasman?

Accepted Answer

The New Zealand mobile segment is a standout success with 50% growth in SIOs. In contrast, the Australian mobile business saw a 7% SIO increase that was entirely offset by ARPU erosion following the introduction of lower-priced, entry-level SIM-only products.

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

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