5GN happened, page-217

thanks for the dot points, and some perspective on these negative headlines would be;

limited progress on fibre network - Red Flag
- Okay, point taken, is it an issue today? is it holding back the business today? Can this investment be made in 12 months when cash flow is picking up.

huge employee benefits expense
- Expected post merger, they will have to trim the fat, such as not needing two CFO;s and two COO'sand two financial contollers, and two heads of HR.., Will see this improve in the 2nd half when they strip our cost synergies from the merger. Think of redundancy payments they had to make in the half. There has also been a significant increase in customer support team. all based in Australia, result in customer enquiries turnaround time improving by 58%.... Direct feed into net promoter score improvement, and improvement in customer retention rates... Good investment in keeping the sales you already have.

limited cash on hand
- Agree to disagree, Investment in CNW cost cash $5.3m.....Restructure cost, $2m... Its the cash in the future that is the only issue here, and they are looking at upfront cash payments from domains, they wont know what to do with all that cash... Maybe invest in some aquisitons and fibre as necessary... Better than debt.

weakening balance sheet (opposite direction to ASX300)
- Agree re weakening BS, but not what will drive to ASX300, revenue, EBIT, Profit and ultimately share price will. Company needs to big enough (Market Cap) and liquid enough (turnover) for consideration to ASX 300. Balance sheet is not concern given forecast cash projection.

chunky loss - Red Flag
- again one off restructure, higher employee expense which will improve, also lease efficiencies will come in time when excess office spaces etc can be relinquished.

big revenue losses in certain business avenues
-Yes, but in smaller segments

- failed to mention revenue gains in some segments, devil or upside is in the detail right. The largest revenue segment recorded growth. i.e. Cloud 9.6m up to 14.3m = 49% growth. Great!
- Domains revenue grew 187% on PCP. and is now second largest revenue segment. Great!
- Hardware and software sales down by half, now the second smallest revenue segment. hardware revenue down, really who cares with the direction the business is moving,

failure to secure Cirrus
- not done yet, board has been reset and CNW is getting some new / renewed business.

lack lustre interest for on market stock purchases even after cancelling of 5GN shares
- cancelling of 5GN shares irrelevant, they were 5GN's shares in WCG anyway.
- Market generally is struggling, and this is a small cap, so no surprises that it has underperformed the market in light of the overhang of stock around, and previous poor liquidity in WCG, and that there were WCG holders still in the green and taking $$.


Data Centre ownership under pressure from Next DC
- DC is a competitive environment (as is domains and hosting) - but very asset heavy, and glad the whole business isnt putting all their eggs in that basket. NXT is spending about double what it generates in capex trying to grow at the moment.... That will never stop in that space have to have the infrastructure to support it. , .. WCG's data revenues are down, and now account for only 8.5% of revenue, even if it halved, the growth rates in the larger revenue segments are more than making up for it... As seen in the total revenue growth numbers. Up $9m or 24%. Despite the pressure in DC revenue, achieving some traction with new sales per the half yr report, devil is in the detail, is the revenue drop from retention issues, or drop in pricing, again small segment, so not so concerned here.