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Highlights
- NZ has a competitive and well-established telecom industry.
- Chorus nominated Miriam Dean as its Director for election at its ASM 2021, while announcing the retirement of Prue Flacks as CNU’s Director.
- Rakon upgraded its FY22 earnings guidance.
New Zealand has a well-established and advanced telecom industry that provides full-fibre and broadband coverage to Kiwis. Telecom stocks help people in staying connected no matter where they are and are in strong demand amid increased digitalisation trends.
Let’s cast a glance at the performance of these 3 NZX-listed telecom stocks.
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Chorus Limited (NZX:CNU, ASX:CNU)
On 21 September, Chorus announced that Miriam Dean has been nominated as Director of CNU for election at its annual shareholder meeting, which will be held on 27 October. Miriam has spent nearly 10 years in commercial dispute resolution and governance roles while serving as a counsel to the Queen and Independent Director.
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CNU also declared the retirement of Chorus Director, Prue Flacks, who has been on Board since 2011. He will step down from CNU at the 2021 ASM.
On 1 October, CNU ended the trading session at $6.725, up 1.89% from its previous close.
Rakon Limited (NZX:RAK)
Rakon announced an upgrade to its earnings guidance for FY22 on 29 September. The Group now expects to achieve an underlying EBITDA between $39 million and $44 million in FY22, up from the previously provided range of $27 million-$32 million. This was due to procuring substantial orders for its TCXO2 because of extensive chip scarcity caused by fire at a factory of AKM.
DO READ: 3 NZX growth stocks that can be worth exploring in October 2021
Rakon has also hired Steven Tucker to the Board as an Independent non-executive director effective 1 October 2021.
On 1 October, RAK ended the trading session at $1.35, down 1.46% from its previous close.
Vital Limited (NZX:VTL)
Vital released its annual report for 2021 on 30 September. Vital reported growth in both its profit and revenue numbers in FY21, registering an increase of 14.5% and 5.6%, respectively, on FY20. Vital finalised all its major capital investments with capital expenditure for FY21 at $8.28 million.
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The Group plans to pay a dividend of 2cps on 15 October. It has predicted a capital expenditure of $5.3 million for the year ending 30 June 2022.
Vital plans to focus on leveraging the outstanding nationwide presence, and new solutions that the Group is now able to offer.
On 1 October, VTL ended the trading session flat a $0.69.
Bottom Line
The telecom industry is set to grow rapidly amid a rapid increase in digitalization trends and many advances going on in the industry.
(NOTE: Currency is reported in NZ Dollar unless stated otherwise)
