Lens through 10 communication stocks

  • Nov 20, 2019 AEDT
  • Team Kalkine
Lens through 10 communication stocks

The telecom sector is one of the key drivers contributing the growth of Australian Economy. However, these might get affected from the policy of nbn and regularity authorities. In the below article we will be discussing about 10 communication services stocks with their recent updates:

Chorus Limited (ASX: CNU)

Chorus Limited (ASX: CNU) owns and operates a national fixed line access to network infrastructure located in New Zealand.

S&P upgrades Debt to EBITDA threshold

Through a release dated 20th November 2019, CNU updated that the S&P has revised its downgrade threshold to a Debt- EBITDA ratio of 4.25x at the current rating level, compared to the earlier ratio of 4x, while the long-term rating remains stable at BBB.

Draft Fibre Input Methodologies

  • Chorus Limited, through a release dated 19th November 2019, announced that the Commerce Commission has released its draft Fibre Input Methodologies Decision. Post the draft decision, the company is expecting a final Input Methodologies decision from the Commission by mid next year.
  • It welcomed Commerce Commission’s acknowledgement of a revised TAMRP of 7.5% with changed market circumstances.
  • It is anticipated that the final Price Quality Determination would come in the middle of 2021.

CNU last traded at $5.270 per share, up 0.19% as on 20th November 2019. The stock of CNU delivered returns of 8.23% and -10.85% during the span of three months and six months, respectively.

Carsales.com Limited (ASX: CAR)

Carsales.com Limited (ASX: CAR) is in the business of online automotive advertising.

Recently, the company announced that Pinnacle Investment Management Group Limited has made a change to their substantial holdings in the company on 13th November 2019 and the current voting power stands at 7.24% compared to the previous voting power of 8.24%.

In another update, the company announced that it has issued 38,046 fully paid ordinary shares at the consideration of $434,473.61. The shares have been issued for the exercise of options, which have been issued under the CAR’s share plan.

CAR last traded at $15.700 per share, down 3.1% as on 20th November 2019. The stock of CAR generated returns of 16.46% and 16.21% during the last three months and six months, respectively.

Nine Entertainment Co. Holdings Limited (ASX: NEC)

ASX-listed media and entertainment company Nine Entertainment Co. Holdings Limited (ASX: NEC) possesses investments covering video on demand, television, digital, print and radio.

As per Chairman’s recent address to its shareholders, FY19 has been a transformational one for the company. In early December 2018, NEC wrapped up the merger with Fairfax, which led to change the scale of its business, creating one of the leading multi-platform media companies in Australia.

It made payment of 5 cents in the name of final dividend, which brought the full year dividends to 10 cps, based on FY19’s average share price, equated to a dividend yield of around 5% fully franked.

NEC last traded at $1.635 per share, down 3.3% as on 20th November 2019. The stock of NEC generated returns of -3.98% and -13.11% during the last three months and six months, respectively

Event Hospitality and Entertainment Ltd (ASX: EVT)

Event Hospitality and Entertainment Ltd (ASX: EVT) is primarily into motion picture exhibition, operation of hotels, restaurants and other rental properties.

EVT completed its Annual General Meeting for 2019 on 18th October 2019 with the Chairman addressing the following key developments-

  • The total net profit after tax for group stood at $111.9 million, consistent with the previous year, while the normalised result after tax witnessed a decline of 7% to $104.3 million.
  • In accordance with strategy, EVT has filled development applications for major property redevelopments at George Street (458-472 and 525).
  • When it comes to major property developments of the group, numerous upgrades and improvements have been planned at Thredbo Alpine Resort and other identified cinema and hotel properties of Group.

EVT last traded at $13.280 per share, up ~2% as on 20th November 2019. The stock of EVT generated returns of 6.90% and 2.20% during the last three months and six months, respectively.

Also Read: EVT Divested Its Unit CineStar To Improve The Economies Of Scale To Its Other Businesses

Vocus Group Limited (ASX: VOC)

Vocus Group Limited (ASX: VOC) is a vertically integrated telecommunications provider with a market capitalisation of A$2.11 Bn as on 20th November 2019.

Recently, the company announced that Julie Fahey has acquired 7,510 ordinary shares at the consideration of ~$25,017.

The company, through a release dated 23rd October 2019, announced that it has appointed Nitesh Naidoo as Chief Financial Officer, effective January 2020.

At 2019 Annual General Meeting, the company stated that VOC established three discrete businesses including (1) Vocus Network Services, (2) Vocus Retail, and (3) Vocus New Zealand during FY19.

VOC last traded at $3.270 per share, down 3.8% as on 20th November 2019. The stock of VOC delivered returns of 16.44% and -14.14% during the span of three months and six months, respectively.

Spark New Zealand Limited (ASX: SPK)

The telecommunication services player Spark New Zealand Limited (ASX: SPK) recently announced that it has appointed Ana Wight as a ‘future director’ under the Future Directors programme, which will be effective from 1st February 2020 for a period of 12 months.

5G Roll Out Plans

The company, through a release dated 18th November 2019, highlighted the upcoming launch of 5G services. It was mentioned in the release that the company would be delivering 5G wireless broadband into 5 more South Island heartland locations before Christmas, subsequent to additional heartland communities, which will be effective March next year.

SPK last traded at $4.210 per share, up 0.34% as on 20th November 2019. The stock of SPK generated returns of 10.89% and 16.73% during the last three months and six months, respectively.

REA Group Ltd (ASX: REA)

REA Group Ltd (ASX: REA) provides services related to property on websites as well as mobile apps throughout Australia and Asia.

The company recently released Q1 FY20 Results-

  • For the three months ended 30th September 2019 (Q1 FY20), it reported revenue of $202.3 million while posting an EBITDA from core operations amounting to $114.9 million.
  • It was mentioned in the release that the results have been delivered amidst difficult market conditions with a fall in new project commencements and new residential listing volumes

REA last traded at $104.170 per share, down 0.918% as on 20th November 2019. The stock of REA delivered returns of 1.46% and 12.24% during the span of three months and six months, respectively.

TPG Telecom Limited (ASX: TPM)

Emerging telecom player, TPG Telecom Limited (ASX: TPM) possesses market capitalisation of A$6.13 billion as on 20th November 2019 with annual dividend yield of 0.61%.

Notice and Agenda of AGM

To pass few of the business agendas, the company has scheduled to conduct its 2019 Annual General Meeting on 4th December 2019:

  • To adopt Remuneration Report of FY19.
  • To re-elect director.

A Look Back at FY19

  • For the year ended 31st July 2019, the company reported EBITDA (before impairment) amounting to $809.4 million, which implies that this amount has surpassed the guidance for FY19.
  • Net Profit After Tax attributable to shareholders stood at $173.8 million.

Also Read: What Made TPG Telecom Limited To Move Up On ASX?

TPM last traded at $6.520 per share, down 1.36% as on 20th November 2019. The stock of TPM generated returns of 0.15% and 5.09% during the last three months and six months, respectively.

Telstra Corporation Limited (ASX: TLS)

Telstra Corporation Limited (ASX: TLS) is involved in the provisioning of telecommunications and information services, which includes mobile, internet and pay television.

The Chairman of the company recently stated that FY19 has been the most important year in the history of TLS. In FY19, TLS wrapped up its strategic investment program of $3 billion, which was needed to create the types of networks it would require in the future as well as to completely digitise its business.

TLS decreased over 1,800 Consumer and Small Business plans to just 20 in market plans. Since FY16, it has achieved around $1.2 billion of annual cost reduction, with a further aim of $630 million cost reduction this year.

TLS last traded at $3.580 per share, down 0.6% as on 20th November 2019. The stock of TLS generated returns of -3.74% and 12.52% during the last three months and six months, respectively.

News Corporation (ASX: NWS)

News Corporation (ASX: NWS) is a global newspaper and book publishing, which provides media related services.

Earnings of Q1 FY20

  • The company experienced a fall of 7% in revenue into $2.34 billion against $2.52 billion in the Q1FY19, indicating adverse impact from currency headwinds as well as the absence of a one-time benefit in the previous year relating to the exit from Sun Bets.
  • However, the quarter ended with the net loss amounting to $211 million in comparison to the net profit of $128 million in the prior year.

Also Read: News Corporation To Put Foxtel On The Right Track Before Launching Foxtel IPO

NWS last traded at $19.400 per share, down 1.02% as on 20th November 2019. The stock of NWS delivered returns of -6.22% and 12.77% during the span of three months and six months, respectively.


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