Online retailer Ruslan Kogan is moving into NBN and mobile broadband, his company, Kogan.com, has announced.
The ASX-listed business has signed a new deal with its existing collaborator, Vodafone, to offer fixed-line NBN services in 2018 as well as mobile broadband plans this year.
In early trade, Kogan.com shares were up 4% to $1.52.
The move comes after the business relaunched its mobile phone service in 2015 in a partnership with Vodafone. The new arrangement runs until 2022, then continues under rolling two-year extensions.
Kogan.com executive director David Shafer said Kogan Mobile was the fastest growing side of the business.
“We’re thrilled to now extend our partnership with Vodafone to enable Kogan.com to offer great new services in mobile broadband and fixed-line NBN at the incredibly low prices that Aussies have come to expect from Kogan.com,” he said.
“The launch of NBN services is a major opportunity for Kogan.com. With a brand that has built a reputation for price leadership through digital efficiency, a huge online audience and a data driven and analytical culture, Kogan.com is well poised to offer and grow a market leading NBN service.”
Shafer said plan details for fixed-line NBN services will be released closer to the launch date.
“We are proud of the partnership between Kogan.com and Vodafone which represents the coming together of two challenger brands to deliver value and choice for consumers,” he said.
The Kogan Mobile side of the business contributed 4.2% of the parent company’s gross profit in 1H17, an Kogan Mobile’s gross profit is up 50% in 3Q17 compared to the previous quarter, the company said.
Kogan.com shares last traded at $1.46, still well below the $1.80 issue price 12 months ago.
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