The Vocus Group Ltd (ASX: VOC) share price traded higher today after the telecommunications company updated the market with its strategy day presentation.
Vocus Group, the owner of Dodo, Primus, Slingshot and many other telecommunications and utility brands held its Strategy Day presentation and included an updated outlook for its 2017 financial year (FY17).
The 134-page presentation covered the group’s current financial situation, transformation strategy and financial outlook for the remainder of the year. Perhaps most importantly for shareholders was the company’s reconfirmed financial guidance, which includes:
- FY17 revenue guidance of around $1.8 billion
- Underlying operating profit of between $365 million and $375 million
- Underlying net profit guidance of between $160 million and $165 million
- Capital expenditure of between $180 million and $190 million
With large amounts of recurring revenue and deferred sales, the company said it recognises the challenges that lay ahead but is well placed to meet them.
It also pointed to the levers that it has available to strengthen its balance sheet, including cutting dividends and asset sales.
Vocus shares have been heavily sold down by the market over the past year and the company was last week pitched a takeover proposal from private equity firm KKR at a price of $3.50 per share.
However, today’s presentation and the outlook appears upbeat, perhaps sending a message to shareholders and potential acquirers that Vocus is still a very valuable company with lots of growth potential.
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The Motley Fool Australia owns shares of Telstra Limited, TPG Telecom Limited, and Vocus Communications Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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