The Vocus Group Ltd (ASX: VOC) share price has climbed 6 per cent to $2.41 today despite the residential and corporate internet services business releasing no news to the market.
However, the stock has still fallen around 30 per cent in two weeks after the group announced neither of two potential private-equity-backed takeover bids for the group would proceed. It also handed in its full year financial results on August 23.
For the full year ending June 30 2017 the telco delivered an underlying profit of $152.3 million and guided for operating income (EBITDA) of $370 million to $390 million over FY 2018.
The group also axed its final dividend and warned it probably won't pay an interim dividend in FY 2018 as it needs to preserve capital to pay down debt and fund the construction of its Australia to Singapore submarine internet-services cable.
Axing a dividend completely shakes confidence and usually puts pressure on a share price as investors focused on short-term returns go in search of other opportunities.
