Reporting Season Wrap: The Telcos
While the sector still has earnings headwinds, these are starting to ease and share prices are reflecting that. More companies are looking to snub the NBN and focus on 5G while a change of Government in May could provide an opportunity for Telstra (ASX:TLS) to pick up the white elephant on the cheap. Key points:
- Telstra cut its dividend, which the market took reasonably well. This is now a company positioning for better growth and therefore they need to recycle capital, the market is coming around to that view.
- Vocus (ASX:VOC) reported late in the piece and met expectations plus reaffirmed guidance, while also raising the white flag on the NBN and will no longer focus efforts there.
- TPG Telecom (ASX:TPM) counted the costs of a failed network build, booking a $228m write down.
