Mid level telco Vocus Group, (which owns internet brands iPrimus and Dodo), has reported a 17% fall in underlying net profit for the year to June with directors confirming there will be no final dividend paid.
The company reported an after tax profit of $127.1 million in fiscal 2018, compared with $152.3 million in 2016-17.
Underlying earnings (before interest, tax, depreciation and amortisation) fell 0.3% to $366.1 million over the year with higher interest, depreciation and amortisation expenses hitting the final underlying figure.
Vocus said yesterday the board had decided not to declare a final dividend for 2017-18, citing competing demands for capital investment, including the Australia Singapore Cable and a focus on reducing leverage.
That means no dividend for 2017-18 as a whole. The last dividend paid was an interim of 6 cents a share for the first half of 2016-17 (which was the payout for the June 2017 year). Net debt at the end of the financial year was at $1 billion.
Recently apppointed CEO Kevin Russell said yesterday the company is expecting underlying earnings expectations of $350 million to $370 million for2018-19, meaning no change from the year to June this year.
“Vocus’ primary focus going forward is growth. Our market share is low relative to our fibre and network infrastructure assets," Mr Russell said in a statement.
He said Vocus planned to "double revenue" from the core Australian and New Zealand infrastructure businesses over the next five years.
Former Vocus chief executive Geoff Horth quit in February of this year after the company reported weak results for the first half of 2018 and a cut to profit guidance from a $140 million to $150 million range down to $125 million to $135 million.
“In June, we closed an upsized bank facility, giving us the financial flexibility to pursue our growth objectives, and removing any requirement to divest assets in order to fund those objectives,” Mr Russell said.
Vocus shares were up 3.3% at $2.64 around 11.30 am with shareholders grateful there were no more shocks in the full year result after the rough year they had in the 12 months to June.
