Vocus 1H19 earnings update: Losses in both Consumer and Business

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Vocus 1H19 earnings update: Losses in both Consumer and Business

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Vocus 1H19 earnings update: Losses in both Consumer and Business
On 27th February Vocus announced its 1H19 earnings. Revenue increased slightly but EBITDA and profits remain on a downward trend.
Key results in the Enterprise, Wholesale and Government segment include:
  • Overall revenues increased 27% from 12 months ago, largely driven by project revenues from the Coral Sea cable build, which is due to be completed by the end of 2019
  • Recurring revenues increased by 6%, supported by:
    • Improvement in new business growth across the division due to increased investment in sales
    • Implementation of account management functions to support growth opportunities within the existing customer base
    • Successful delivery of Australia Singapore Cable and conversion of the built-up demand
    • Strong growth in wholesale NBN SIO’s based on core value proposition and new products
Consumer and business segments saw large declines in revenue and SIOs.
In a year of “resetting”, Vocus faces the difficult challenge of extracting value out of its fibre assets through enterprise projects and transforming its Consumer segment with a renewed focus on mobile and wireless.