Before the nextgen acquisition, I think 40 % of the profits came from the corporate division after checking M2 , vocus and Amnet annual reports. Now it should be closer to 50 % after nextgen acquisition. Also something like 33 % of the consumer division profits come from NZ.
( Annual report 2016 >>> NZ, 14 % market share : broadband SIO s ( services in operations) 192 000 / AU, 6 % market share : boradband SIO s 520 000 in AU )
I assume something like two thirds of profits come from New zealand and /or the corporate division( AU /NZ) and only one third from the Australian consumer division. Because most of the problems come from the AU consumer division ( NBN costs, challenging market ,ect...) I do think that vocus is a safe and smart investment especially at the current price.
Right now P/E is only 12 for the coming year (underlying earnings) and probably 10 or less for the FY 2018.
VOC Price at posting:
$4.17 Sentiment: Buy Disclosure: Held
