Enterprise ICT stocks in Australia and New Zealand showed mixed performance over the last year, though some stronger full year results buoyed certain stocks. 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 changed their name in January to 5G Networks. Their shares continued their volatility, falling 16% in the month. This is on the back of the company confirming the sale of two-thirds of their Domains Business in late December 2023. The total cash proceeds received from the sale was $107m.
Data#3’s stock had a strong January, rising nearly 16% after the company announced that it expects its net profit before tax for the first half of FY24 to amount to between $30-31m, exceeding its guidance provided in October of between $27-29m.
Vonex’s stock continued its poor run, sinking nearly 37% in January despite no price sensitive company announcements. The stock has been broadly sold off by investors in the last twelve months, falling 74%.
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