The telco’s retail enterprise noticed income decline 12 p.c within the six months ended 31 December 2019, attributable to a 47 p.c discount in its copper and conventional voice choices and its Commander model. The decline was partly offset by enhancements within the Dodo model and progress in NBN and IP Voice merchandise.
The decline from the retail division offset recurring income progress from Vocus Community Providers (which covers enterprise, authorities and wholesale) and Vocus’ once-struggling New Zealand enterprise.
In an ASX announcement (pdf), Vocus chief govt Kevin Russell mentioned, “Our retail operation is showing encouraging signs of revenue stabilising for its core consumer base as we diversify towards mobile and energy.”
“We continue to manage the erosion of revenue and margins as customers transition to the NBN and have made strong inroads in reducing our cost structure.”
Vocus posted a 6.9 p.c total decline in income at $901.9 million, down from $969 million within the earlier 12 months.
Web revenue after tax took an even bigger hit than income, posting a 22.four p.c decline to $12.eight million for the interval, in comparison with 16.5 million in 2018.
This included the $3.5 million Vocus contributed to the settlement of a category motion swimsuit, with the remainder of the settlement totally insured. That swimsuit settled in late December 2019 when Vocus agreed to pay $35 million to settle a category motion introduced by disgruntled shareholders within the wake of the telco’s 2017 earnings dip.
“Vocus is at the midpoint of our three-year turnaround,” Russell mentioned. “Over the last 18 months, we have delivered three steady financial halves and have built the foundations for growth.”