Actually the business was in decline before the GFC got underway, call volumes from payphones have been falling for more than 2 years and in Australia REF has been unable to sign the biggest mobile player in Telstra.
Management has been asleep at the wheel here, they have paid out dividends in excess of profits for the past two halves and only now decide to get capital conscious.
Poor management and a poor outlook for the next 12 -18 months does not bode well for a good investment. That said, if you pay between 60 - 70c and can be guaranteed 6c in divs per year, that's not a bad yield to take while waiting for growth. You'll need to be patient though.
REF Price at posting:
69.0¢ Sentiment: None Disclosure: Held
