CNU, RAK- 2 communication stocks to watch as NZ's ICT sector flourishes

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CNU, RAK- 2 communication stocks to watch as NZ's ICT sector flourishes

Communication stocks
Image source: Dabarti CGI, Shutterstock.com

Highlights

  • NZ’s information and communication sector saw a boom during the pandemic.
  • Chorus commences its share buyback programme to boost its future earnings per share.
  • Rakon’s existing Chair to retire next month, appoints new Chair.

As per the latest report of Stats NZ, the pandemic accelerated the need for digital tools so that both individuals, as well as businesses, could connect with each other and there is no hindrance in work and business operations.

Hence, the country’s information and communication technology (ICT) sector witnessed a 39% growth from the sales of software and related services in 2021 as compared to 2019.

While exports of ICT software and services jumped by 27% to NZ$2.2 billion, total sales of published software skyrocketed to 52% at NZ$4.0 billion during the said period.

With that backdrop, let us take a peek into two NZX-listed communication stocks that can be considered.

NZ communication stocks- CNU, RAK

Source: © 2022 Kalkine Media®

Chorus Limited (NZX:CNU; ASX:CNU)

Chorus Limited has recently revealed the commencement of its on-market share buyback programme, wherein the Company will purchase shares worth NZ$150 million, from time to time, for a period of one year, starting from February this year.

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This will help boost CNU’s future earnings per share as well as imputation credit reserve.

Also, the shares thus acquired will be cancelled upon acquisition, thereby lowering the number of shares on issue.

Rakon Limited (NZX:RAK)

Rakon Limited is renowned for providing frequency control products and timing solutions, which are widely used in the telecommunication sector. Recently, RAK disclosed that its Chair, Bruce Irvine, would retire next month.

Must Read: RAK, MHJ and 2 other stocks boasting over 75% YTD returns

He will be succeeded by Lorraine Witten, who has significant governance experience.

It is noted that Bruce has been associated with Rakon since 2005, and the Board has acknowledged his immense contribution to the Company.

Bottom Line

Communication companies are the lifeline of a nation as they provide much-needed connectivity between individuals and sectors to drive innovation, which is necessary for continuous economic growth.

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