Telco stocks in Australia and New Zealand have seen wide spreads in performance over the last 12 months, but larger telcos are often being favoured. Economic growth is sluggish relative to 2022, creating uncertain performance for telco equities.
Megaport’s stock fell nearly 19% in October after the company’s quarterly update which showed relatively modest customer growth, with total services increasing by only 2% from the June quarter and net new customer ports seeing a mere 1% increase. Despite this, there was some positive news with increases revenue when compared to the previous quarter.
TPG’s stock fell around 6% in October with doubts arising about whether its $6.3 billion acquisition of Vocus Group will eventuate. The company announced that its exclusive due diligence period of Vocus expired and the consideration amount is subject to change.
Superloop’s stock fell 10% in October due to the continued reaction from investors to the company being outbid by Aussie Broadband and missing out on the transformative acquisition of Symbio.
Venture Insights is an independent company providing research services to companies across the media, telco and tech sectors in Australia, New Zealand, and Europe.