An update on: Vocus
I was cantering though the Vocus Communications Ltd (ASX: VOC) 2014 Annual Report, and I thought I would highlight the following points…
- Ethernet, Dark Fibre and Data Centre hosting capabilities account for over half the company’s revenue (and growing), meaning Vocus is “fast becoming a telecommunications infrastructure provider of choice for the cloud revolution”;
- Vocus owns 12 data centre facilities across 8 sites, totaling 3,670 square metres. Its Australian metro Fibre network (585km) also connects 82 other data centres;
- Vocus has connected 1,048 buildings and passes an additional 30,000 buildings. As the ratio of buildings per kilometre of Fibre network grows from the current 1.8 times, financial leverage should be considerable;
- The company is launching its first branding and marketing program to increase brand awareness and drive sales (see below advertisement); and
- Recent strategic acquisitions including the New Zealand-based FX Networks (4,200km of fibre), part ownership of the Sea-Me-We3 cable (from Perth to Singapore) and the Bentley data centre in Perth, should all be value accretive over the medium-term.
The Montgomery [Private] Fund owns shares in Vocus Communications Ltd.
Chief Executive Officer of Montgomery Investment Management, David Buckland has over 30 years of industry experience. David is a deeply knowledgeable and highly experienced financial services executive. Prior to joining Montgomery in 2012, David was CEO and Executive Director of Hunter Hall for 11 years, as well as a Director at JP Morgan in Sydney and London for eight years.
This post was contributed by a representative of Montgomery Investment Management Pty Limited (AFSL No. 354564). The principal purpose of this post is to provide factual information and not provide financial product advice. Additionally, the information provided is not intended to provide any recommendation or opinion about any financial product. Any commentary and statements of opinion however may contain general advice only that is prepared without taking into account your personal objectives, financial circumstances or needs. Because of this, before acting on any of the information provided, you should always consider its appropriateness in light of your personal objectives, financial circumstances and needs and should consider seeking independent advice from a financial advisor if necessary before making any decisions. This post specifically excludes personal advice.
Mike
:
I notice that today VOC dropped ~6+% after TPG has announced a significant shareholding in AMM.
Do you think this is an overreaction by the market and that both companies are on an equal footing to win this battle?
This could turn out to be like the Warrnambool saga?
MTU/TPM/VOC – maybe even SGT?
vishal.hargovan
:
Vocus bought 10% of AMM and they are in discussions with the AMM board for a script based takeover. Waiting to see the details, but could be a great deal for both sets of shareholders given the complimentary fibre networks and services provided.
Roger Montgomery
:
Indeed. Look out for the blog post.. Montgomery is an owner of both.