Vocus has returned to profit but has cancelled dividends

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  • Vocus full year profit of $61 million, an improvement on last year’s loss of $1.46 billion.
  • Revenue up 4% to $1.9 billion.
  • But no dividends.

Telco Vocus returned to profit posting a full year result of $61 million but decided not to declare a final dividend.

Instead, the company will use the cash for capital investment, including building the Australia-Singapore high speed data cable.

At the close, Vocus shares were up 7.4% to $2.75.

Overall revenue and income was up 4% to $1.9 billion.

Last year, Vocus reported a $1.46 billion net loss after tax, mainly due to a once-off goodwill write-down of $1.53 billion of its Australian and New Zealand assets.

CEO Kevin Russell says the 2018 results are in line with guidance provided in February.

“The result has been achieved during a period of significant internal change and challenging market conditions,” he says.

The company, like other telcos, has seen its margins shrink as customers migrate from fixed lines to NBN.

“Vocus’ primary focus going forward is growth. Our market share is low relative to our fibre and network infrastructure assets.

“Our priority is to leverage these assets to maximise profitable growth within our core Australian and New Zealand infrastructure focused businesses. Our target is to double revenue from these businesses over the next five years.”

The company expects 2019 underlying EBITDA of between $350 million and $370 million, compared to $366.1 million in 2018.

The 2018 results compared to 2017:

Source: Vocus