Dashboard containing:

• Monthly and annual share price movements for main listed enterprise ICT stocks
• Key earnings multiples
• Forward earnings multiples vs forward growth estimates
• Share price movements tracked over last twelve months

Commentary

Key developments

Enterprise ICT stocks in Australia and New Zealand showed mixed performance over the last year. Overall, economic growth is expected to be sluggish relative to previous years, creating uncertain performance for enterprise ICT equities. Some of these companies are growing through acquisition rather than organically, and are exposed to any economic downturn.

Webcentral (5G Networks)

Webcentral, who changed their name in January to 5G Networks had a poor month of stock performance, down 20% after the company released 1H24 results showing flat revenue growth when compared to 1H23. The business recently completed a restructuring, selling two-thirds of its Webcentral domains business to Oakley for $158m.

Data#3

Data#3’s stock fell over 14% in the last month, despite releasing 1H24 results showing improved performance relative to 1H23, with gross sales up 13.4% to $1.3b and NPAT up 25.5% to $21.4m. The results also highlighted that the company’s interim fully franked dividend was up 26% to 12.60 cents per share.

Spirit Technology

Spirit Technology’s stock fell over 22% over the past month with the company releasing poor 1H24 results where revenue was down 15% compared to 1H23 to $57m, and EBITDA down nearly 100% compared to 1H23 to $0.16m. The company also announced it was acquiring cyber security company InfoTrust for $34.6m compromising a combination of cash and scrip.

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