Question 1

Is the shift toward infrastructure actually delivering better margins?

Accepted Answer

The transition is yielding high returns in the core infrastructure segment, where the Networks division achieved a 51.0% EBITDA margin in FY19. This performance was underpinned by a 23% surge in division revenue to $710 million, largely driven by $119.7 million in project revenue from the Australia Singapore Cable.

Question 2

How much damage is the retail price war doing to the bottom line?

Accepted Answer

Retail revenue collapsed by 15% year-on-year as legacy copper and voice revenues now comprise only 35% of the retail mix. This decline, coupled with NBN market share eroding from 7.6% to 6.4%, contributed to a 17% drop in underlying NPAT to $105.5 million.

Question 3

Can NBN migrations eventually fix the retail margin problem?

Accepted Answer

While NBN ARPU of $64 is higher than the $58 legacy copper ARPU, the migration is not yet a growth engine. NBN customers now represent 73% of the retail fixed subscriber base, but continued competitive intensity in the Australian market is expected to keep FY20 EBITDA flat at a projected $359-$379 million.

Question 4

Is the New Zealand business still a reliable hedge for the group?

Accepted Answer

New Zealand remains a consistent performer, delivering 4.5% revenue growth in FY19. The market is successfully transitioning to high-speed infrastructure, evidenced by a significant 54% increase in UFB fibre subscribers.

Vocus: building their identity as an infrastructure business

Abstract

Key Takeaways

Frequently Asked Questions

Abstract

Key Takeaways

Frequently Asked Questions

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