What I cannot understand is the timing of Penn's announcement. With 4 years to run under the current contract and with TLS not loaded with cash , why announce the decision now? VTG and the franchisees are doing a fine job, IMHO much better than TLS could do, My local TLS shop is run by VTG and they had a queue out front this sat morning of ppl wanting to spend their hard earned at the TLS shop, incidentally the other shop with a Queue was the fake nail shop. So TLS must be wanting an early break to take over the bricks and mortar shops, and are prepared to pay out a coupla hundred mill to do so. I guess the shoe is on Maxine's foot cos if TLS do not pay enough , we either go to arbitration, or continue on for another 4 years. the decision to outsource the shops has proven to be a good one, and it seems that unlike banks which can be closed readily, the Mobile phones are much more complicated for people to navigate, and hence why they want to visit a physical store. Optus and the rest don't work well down here, so TLS has a monopoly. Another weird decision from Telstra, They do not seem like a company capable of making sound decisions, very similar to AMP IMHO.
VTG Price at posting:
94.5¢ Sentiment: Hold Disclosure: Held
