Dashboard containing:

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

Commentary

Key developments

Telco stocks in Australia and New Zealand have seen wide spreads in performance over the last 12 months. Economic growth is expected to remain sluggish relative to previous years, creating uncertain performance for telco equities.

Superloop

Superloop’s stock has had another stellar month, jumping around 29% after Origin Energy decided to part ways with Aussie Broadband and side with Superloop for providing wholesale broadband to its 130,000 customer accounts. Origin signed a six-year exclusive contract with Superloop which the company expects to boost their FY24 underlying EBITDA guidance from the previous $49-53m range to a revised $51-53m range. In consideration for the contract award, Superloop has issued and will grant a share package to Origin.

Aussie Broadband

Conversely, Aussie Broadband’s stock has fallen over 17% in the last month, with Origin ditching its white label wholesale agreement with the company in favour of Superloop. Despite the expected EBITDA contribution the agreement would have, Aussie Broadband reaffirmed its recently upgraded FY24 EBITDA guidance of $105-110m.

Pentanet

In the last month Pentanet’s stock rose over 18% thanks to an announcement by the company that its GeForce NOW partner agreement with NVIDIA has been amended to recognise New Zealand as a serviceable territory with a pathway to add neighboring territories. The agreement allows the company to delivery cloud gaming services to members. To support the capex requirements this entails, a $4.28m placement was secured by the company through the issuing of new ordinary shares.