"Flip has done a really good job growing from a zero percent market share, and the team’s picking up lot of growth off the back of a very simple proposition of offering the best-value broadband packages in the market. So, essentially, they’ve got a price positioning in the market, which offers simple, no frills broadband with a great infrastructure. Slingshot historically had bit of a reputation of under-investing in the service … But it’s now to the point where it’s industry leading and picking up a whole bunch awards, and it’s become a really premium service offering with an aggressive price point. And, finally, Orcon are getting back into market after a period of under-investment with previous owners. And it’s really pushing the fibre expert angle … So it’s different strokes for different brands, I guess. It’s important that we’re not trying to be the best at the same thing. We need to pick our point of differentiation and execute that as well as possible."
The combined market share of the three brands sees M2 Group sitting in third position in the ISP market behind Vodafone and Spark.
"We’re sitting at about 15 percent [of total market share] across the three brands," says Hamilton. "But over the last few months, we’ve been picking up about a third of the new growth in the market, so we’re definitely boxing twice above our market share in terms of growth. We’re really happy with that, and in the short- to long-term we hope to continue that for as long as possible ... The key underlying philosophy behind the three of them is that they are challenger brands. We want to act as challenger brands and be as aggressive as possible by offering products that put the customer first and foremost. We want to continue to innovate as much as possible. We’re a pretty nimble organisation, so we can get to market as quickly as possible to do things that the bigger guys aren’t willing or perhaps capable of doing."
MTU Price at posting:
$9.16 Sentiment: Buy Disclosure: Held
