ASX communication stocks with more than 100% returns - FSG, UWL, ABB

Highlights

  • Australia’s telecom sector is amongst the most competitive and mature telecom markets in the world.
  • Australia is making progress towards 5G implementation and is investing in Mobile Black Spot Program.
  • FSG, UWL, ABB are a few companies from the telecom space with YTD return over 100%.

Globally, the telecom sector is proving to be a core and essential infrastructure service to national economies. Australia’s telecom sector is amongst the most competitive and mature telecom markets in the world. Many experts believe that in the period between 2021-2026, mobile subscriptions would increase at a faster rate. However, Fixed broadband subscribers would increase at a considerably lower average rate in the same time frame.

At present, Australia is making progress towards 5G implementation. The government is also investing in Mobile Black Spot Program to improve the mobile coverage and competition across Australia. Some big players from this space include names like Telstra (ASX:TLS), TPG Telecom (ASX:TPG) and Field Solutions (ASX:FSG), which are supporting the Mobile Black Spot Program.

RELATED READ: Glance at three ASX communication stocks amid the evolving telecom trends

On that note, let us look at a few companies from this space that made significant progress in 2021.

Source: ASX, closing price as on 22 September 2021.

Field Solutions Holdings Limited (ASX:FSG)

Field Solutions Holdings provides connectivity to rural and regional Australia. In 2021, FSG witnessed significant growth in its share price, driven by strong financial results and significant achievements made during the year.

On 19 August 2021, the Company released its FY2021 results and recorded a 77% growth in its revenue to reach AU$18.8 million and 485% growth in EBITDA to reach AU$2.2 million. NPAT grew significantly by 550% to AU$2.1 million.

Revenue growth

During this period, the Company made its market entry to Western Australia. It was awarded an AU$2.1 million Digital Farm Grants Program. FSG witnessed robust revenue growth in its B2B, government & enterprise channels. In addition, it secured a six-year wholesale supply deal with MyRepublic totalling AU$45 million.

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Overall, FSG continues to implement its business plan of building and growing telecommunications networks in rural, regional, & remote Australia by making use of those assets to enlarge and create new revenue streams.

Recent Achievements:

On 21 July 2021, FSG announced that it was obtained an extra AU$0.9 million from the Federal Government’s Mobile Blackspots Program Round 5a to test domestic roaming. It also got AU$3.66 million to test Neutral Host model in collaboration with Optus & lessen the cost-of-service supply to regional Australia.

ALSO READ: Field Solutions (ASX:FSG) secures AU$20.475 Mn RCP Funding, shares up ~11%

Aussie Broadband Limited (ASX:ABB)

Australian owned and operated telecom company Aussie Broadband Limited (ASX:ABB) delivered a YTD growth of over 100%. ABB’s share performance was driven by strong FY2021 results and the recent developments of the Company.

In FY2021, ABB delivered an 84% growth in revenue to AU$350.3 million compared to the previous corresponding period. EBITDA (before IPO expenses) improved by 433% to AU$19.1 million. Total broadband services also improved massively by 53% to 400,848.

RELATED READ: Aussie Broadband (ASX:ABB) exceeds forecast; how WFH boosted earnings

EBITDA growth

Recent Achievements:

On 06 September 2021, the Company announced a ten-year agreement with VicTrack to swap access to their respective fibre networks. The swap would considerably boost the geographic reach of the fibre network of ABB, particularly into regional Victoria.

On 08 September 2021, ABB finalised AU$114 million institutional placement to assist development by Merger & Acquisition, new business product &  technology development, and more fibre & network build.

Uniti Group Limited (ASX:UWL)

Uniti Group Limited is the 2nd biggest (next to the government held NBN) constructor, owner and operator of privileged FTTP digital infrastructure & linked technology to offer varied telecom products and services in the country.

In 2021, UWL shares grew significantly, driven by solid FY2021 results posted by the Company.

Impressive results

In FY2021, UWL reported a 175% growth in revenue to AU$159.9 million. EBITDA improved by 254% to AU$93.7 million. It reduced its net debt by 17% to AU$208.3. Contracted premises increased by 24% in 2H FY2021, after connecting around 16,000 premises. The secured premises surpassed 500,000. Once Velocity migration completes, secured premises would exceed 565,000.

RELATED READ: Uniti Group to Acquire OptiComm Limited and Upgraded Earning Guidance

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