From FRX to TLS, MAQ: How are these telecom stocks faring on ASX?

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From FRX to TLS, MAQ: How are these telecom stocks faring on ASX?

 From FRX to TLS, MAQ: How are these telecom stocks faring on ASX?
Image source: © Aprescindere | Megapixl.com

Highlights

  • Flexiroam witnessed strong growth in Q1FY23 with 200% surge in revenue as compared to pcp.
  • In April, Comms Group signed a major global agreement with a multinational telecom provider, Vodafone Global Enterprise.
  • Macquarie reported a 16.8% compound annual growth rate (CAGR) of EBITDA over the past three years and revenue growth of 7.3%.

Telecommunications is one of the major infrastructure services of the world and it would not be wrong to say that telecom services has made the world a smaller place with increased connectivity and enhanced data services.

Additionally, the COVID-19 pandemic induced work from home culture has made the requirement of telecom services more essential and prominent.

Australia has a competitive and mature telecommunications market which is expected to grow in the future.

In this article, we at Kalkine Media® will  discuss some stocks from the Australian telecommunications space

Flexiroam Ltd (ASX:FRX)

Mobile data provider Flexiroam made strong progress in Q1FY23. The company's revenue for the quarter was AU$1.6million, up 30% compared to the previous quarter and 200% more compared to prior corresponding period (pcp). Similarly, the company's cash receipts surged by 20% compared to the last quarter and 369% compared to pcp. Further, during the quarter, Flexiroam made some important deals and partnerships.

The company ended the quarter with a strong cash balance of AU$3.6 million.

Hubify Ltd (ASX:HFY)

Hubify Ltd, a leading telecom and IT services provider, entered a new supplier agreement with Swift Media Limited (ASX:SW1) in May. Under the agreement, Swift will enable Hubify to offer customised communications and entertainment solutions to its huge and expanding Aged Care customer base. The 54-month contract is worth more than AU$1.5million of which 83% is recurring.

In April, Hubify acquired Managed Services and Telco business of Connected Intelligence which will generate revenue worth AU$2.6million and EBITDA of AU$0.87million on a yearly basis.

Comms Group Ltd (ASX:CCG)

Comms Group, an IT and Communications services company, signed a major global agreement with Vodafone Global Enterprise, a multinational telecom provider, in April. Under the deal, Comms Group will offer unified communications and related telecommunications services to Vodafone. Initially, the agreement is for three years and is renewable every year.

Comm's Group revenue for 1H FY22 was 90% above its previous corresponding period (pcp). Similarly, its EBITDA increased by 63% compared to pcp.

Tuas Ltd (ASX: TUA)

Tuas is a mobile network and telecom services provider. In the half year ended 31 Dec 2022, the company's revenue increased by 113% compared to pcp. Similarly, its EBITDA for the period was S$6.3 million. Tuas has witnessed a constant growth in its subscribers, starting from 172k in Q1 FY20/21 to 487k in Q2 FY21/22. The company also launched two new products, Simba Super Roam and Simba Super IDD Pack, during the reporting period.

Outlook – Tuas was expecting to launch 5G standalone services in 2022.

TPG Telecom Ltd (ASX: TPG)

TPG is one of the top telecommunications companies in Australia. Last month, TPG completed sales of its passive mobile tower and rooftop infrastructure (Tower Assets) to OMERS Infrastructure Management Inc. Total enterprise value of the deal amounted to AU$950 million.

In the half year ended 31 Dec 2021, the company reported an EBITDA of AU$1,731 million. Similarly, the company declared fully franked final dividend of 8.5cps. The company is well on track to double its subscriber base to 160k by the end of FY22.

Pentanet Ltd (ASX: 5GG)

Pentanet provides internet, telecommunications products, and gaming technology services. In Q4FY22 Pentanet witnessed 40% year-on-year (YoY) growth in revenue. Similarly, its quarterly cash receipts surged by 48% YoY. During the quarter, 1,281 subscribers were added to its network. Further, it witnessed substantial growth in its GeForce NOW cloud gaming memberships.

In June, Pentanet launched neXus, its next-generation intelligent mesh wireless network for Perth. NeXus's premium Hell Fast plan has unlocked speeds and unlimited data for AU$129 per month.

Hutchison Telecommunications (Australia) Ltd (ASX: HTA)

Hutchison is an ASX-listed telecommunications business which holds a 25.05% equity interest in TPG Telecom Limited (ASX: TPG). In 2009, Hutchison merged its telecommunications business with Vodafone Australia (3 and Vodafone) in a 50:50 joint venture. The merger created a huge business and brought along the unified global expertise, research and development abilities and support to offer one of the top services to the people of Australia.

Following are the highlights of the company for the half year ended 30 Jun 2021:

  • Statutory net loss of AU$5.7 million
  • Revenue from ordinary activities was AU$47k

Telstra Corporation Ltd (ASX: TLS)

Telstra, an Australian telecommunications company, completed the acquisition of Digicel Pacific in July. Digicel Pacific is a major provider of communications services. The company generated  US$466 million in service revenue for the financial year ended 31 Mar 2022.

In February, Telstra signed a ten-year regional Multi-Operator Core Network (MOCN) commercial agreement with TPG Telecom. The deal will offer substantial value to Telstra’s wholesale mobile revenues and provide 4G and 5G services to TPG subscribers.

Swoop Holdings Ltd (ASX: SWP)

Swoop Holdings, an internet telecommunications company, witnessed strong growth in customer receipts in Q4 FY22 with an increment of 123%. The growth in customer receipts demonstrated a high demand for customer services in a post-pandemic hybrid working environment. The company’s cash flow for the quarter was AU$3.0 million, compared to AU$1.6 million of the previous quarter. Other highlights of the quarter are as follows:

  • Implemented a facility agreement with Westpac worth AU$32.1 million
  • Completed the acquisition of Luminet, a Sydney-based dark fibre builder, owner, and operator

Macquarie Telecom Group Ltd (ASX: MAQ)

Macquarie Telecom Group Ltd specialises in government cyber security, data centre and the cloud. In June, the company reported that its unaudited EBITDA for FY22 is anticipated to be towards the higher end of AU$85 million to AU$88 million as previously announced.

In the half year ended 31 Dec 2022, Macquarie reported a 16.8% compound annual growth rate (CAGR) of EBITDA over the past three years and revenue growth of 7.3%.

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