AUS
NZ
UK
CA
USA
IND
Highlights
- Often referred to as the backbone of a country, communications stocks are vital to the country's economic evolution.
- Chorus has issued new shares under its Dividend Reinvestment Plan.
- Infratil makes significant growth capital investment in Kao Data, a data centre platform based in London.
New Zealand has a stable communication network, with network operators backed by solid economic fundamentals offering pan-country full-fibre broadband network.
The country’s total investment in the telecommunications sector stood nearly at NZ$1.6 billion in 2020.
That said, let us check out the five main communications stocks on the NZX.
Image source: © 2021 Kalkine Media New Zealand Ltd, data source- EODHD/Others
Chorus Limited (NZX:CNU)
Auckland-based Chorus Limited boasts connecting 580,000 Kiwi homes with its fibre network. Lately, under its Dividend Reinvestment Plan, the Company has announced issuing new shares amounting to 3,852,235.
It is pointed out that CNU's DRP rate was fixed at 38% in its FY21 final dividend.
At the time of writing, Chorus was trading down by 0.62% at NZ$6.410, on 13 October.
Related Read: 5 Popular NZX telcos to look at in October 2021
Vital Limited (NZX:VTL)
Functioning in the communication sector for more than 20 years is Vital Limited. Recently, owing to uncertainties related to the pandemic, the Company disclosed holding a virtual Annual Meeting on 19 October.
VTL intends to present both its FY21 financial statements as well as aims to pass ordinary resolutions in the said meeting.
Shares of Vital gained 1.47% at NZ$0.700, on 13 October, at the time of the trading session.
Interesting Read: Which are 5 NZX penny stocks from the technology space?
Infratil Limited (NZX:IFT)
Another player in the NZ communications segment is Wellington-based Infratil Limited. The Company has revealed of investing funds worth £120-130 million in Kao Data, a London-based data centre platform.
Must Read: What does Infratil’s (NZX:IFT) investment activity reflect?
It is noted that the latter manages highly advanced and sustainable colocation data centres. The said growth capital investment by IFT would enable it to leverage Kao’s expertise, thereby greatly helping Infratil in its strategic growth expansion.
On 13 October, Infratil was up by 0.24% at NZ$8.320, at the time of writing.
Spark New Zealand Limited (NZX:SPK)
NZ’s most popular Auckland-based telecom company is Spark New Zealand Limited. It has recently intimated its shareholder of conducting an online Annual Meeting on 5 November.
SPK also seeks to re-elect its directors, Ms Alison Barrass and Mr David Havercroft, in the said meeting.
At the time of writing, Spark New Zealand was up by 0.97% to be at NZ$4.675, on 13 October.
Related Read: 5 NZX stocks with a healthy dividend yield
Rakon Limited (NZX:RAK)
Offering timing solutions and frequency control products, Rakon Limited enables the high-speed rollout of the 5G network across the country. Owing to strong demand for its 5G network equipment, the Company has upgraded its earnings guidance for FY22, forecasting an underlying EBITDA between NZ$39 million-NZ$44 million.
Also Read: How are these 3 NZX Communication Stocks doing?
Also, it has appointed a new independent non-executive director, Steven Tucker, on its Board.
Shares of Rakon declined by 0.63% at NZ$1.590, on 13 October, at the time of writing.
Bottom Line
The communication sector fulfils the fundamental need of connecting and communicating with society. The more advanced the communication sector of a country is, the more solid base is laid out for its businesses, government as well as residents.