Story image

Vocus New Zealand, Aussie data centres on the chopping block

24 Oct 2017

Vocus is up to be put up for sale, with Australian parent Vocus Group also looking to sell the company’s Australian data centre assets.

Vocus New Zealand’s business includes Slingshot, Orcon, CallPlus and fibre optic firm FX.

Mark Wratten, Vocus Group chief financial officer, says the Vocus Group board ‘has now determined that the Vocus New Zealand business will be prepared for sale’.

In August Vocus announced a review of its non-core Australian assets for potential divestment.

Since the announcement of the assets review, further inound approaches have been received on assets across the entire Vocus portfolio, the company says.

The company is currently finalising appointment of advisors for the sale of the Kiwi business, with a target date for sale completion of the end of financial year 2018.

Proceeds of the sale will be used to reduce debt, leverage ratio and provide strategic options.

The New Zealand business contributed $323 million for Vocus Group in FY2017, with EBITDA of $57.5 million. The company is forecasting high single digit growth in revenue for the business in 2018, with low single digit growth in EBITDA.

The announcement came in Vocus Group’s first quarter FY18 trading update, which noted positive results for the Kiwi business.

Vocus Group says the New Zealand business saw net broadband subscriber growth in the consumer segment of 3,365 in the first quarter, with the company ‘taking an unfair share in UFB – 16% of all UFB connections in Q1 FY18’.

It now has more than 50,000 UFB customers and says churn rate has reduced to 1.4%, down from 1.9% for FY17.

Vocus Group says other non-core Australian assets will continue to be evaluated for potential divestment or closure.

Dell EMC launches interactive AI Experience Zones
The AI Experience Zones are designed to educate visitors about how to start, identify, and implement an AI project.
EXCLUSIVE: Forcepoint global channel chief talks strategy
As a solution sold 100% via the channel, cybersecurity solutions company Forcepoint places a strong emphasis on its partner relationships.
IDC: Semiconductor market declines after three years of growth
However, it says that semiconductor revenues will recover in 2020 and log a compound annual growth rate (CAGR) of 2.0% from 2018-2023.
D-Link hooks up with Alexa and Assistant with new smart camera
The new camera is designed for outdoor use within a wireless smart home network.
Vocus slams ComCom mobile review as “disgraceful”
The Commission says there is no need for measures to improve competition in the NZ mobile market. Vocus says this decision will be “crippling.”
Virtustream launches new services for cloud applications
The new suite of professional and managed services expands Virtustream’s enterprise application and services solutions.
Secureworks Magic Quadrant Leader for Security Services
This is the 11th time Secureworks has been positioned as a Leader in the Gartner Magic Quadrant for Managed Security Services, Worldwide.
Datto expands A/NZ presence with Sydney office
This investment will enable Datto and its partners to continue to grow and address the IT needs of small and medium businesses (SMBs) in the region.