When infrastructure meets salesforce: a moaty telco rolls up into the big league.
- From humble beginnings in 2008, Vocus Communications has blossomed into a major telecommunications player in Australia and New Zealand, via concerted investments in infrastructure and acquisitions.
- The recent merger with M2 has catapulted Vocus into the trans-Tasman big leagues.
- It is a vertically-integrated entity with a significant fibre network, a large customer base, diversified revenue streams, and an extensive salesforce—a combination that opens up material growth avenues.
- All this is reflected in the lofty multiples Vocus shares are trading at.
- M2 integration risks, threat to consumer margins from the National Broadband Network and hyper market expectations on synergies and growth have the potential to erode some of the stock's premium rating.
Analysts: Brian Han & Benjamin Chan
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