The Vocus Board has chosen to modestly revise earnings guidance for the full year with Underlying EBITDA now expected to be in the range of $365-380 million (previously $370 – $390 million) on revenue in the range of $1.9-2 billion (unchanged). This revision primarily relates to the Australian Consumer division facing headwinds in H2FY18 due to over hedging of its energy portfolio and a change in its go to market strategy, resulting in a reduction in the amount of subscriber acquisition costs that can be deferred. For further detail refer to Slide 26 of the investor presentation.
Group CEO, Geoff Horth, stated “Today, we deliver results that demonstrate progress in improving performance for our shareholders. We have recorded strong growth in our Enterprise & Wholesale businesses in both Australia and New Zealand, we continue to take share in NBN and UFB and our transformation program is gaining traction across the business.
“The Vocus Australia Singapore Cable project is on track to be ready-for-service in Q1 FY19 and is attracting strong customer interest, and has executed several customer capacity agreements. Similarly, the divestment of our New Zealand business is progressing in accordance with the planned timeline. Whilst facing some short term earnings headwinds in the Australian Consumer division, the Vocus business has significant growth opportunities available to it and a clear strategy in place to take share in the most attractive market segments; combined with our focus on efficiency and customer experience, the business is well positioned to deliver shareholder returns into the long term”, concluded Mr Horth.
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