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The Vocus Group Ltd share price is rising on a strategic reshuffle

Shares in internet servies provider Vocus Group Ltd (ASX: VOC) climbed 1.2% today after it revealed a management shake-up in an attempt to stimulate sales growth across the legacy Vocus business that is separate to the consumer-facing legacy M2 Group business.

Vocus will split its Enterprise and Wholesale business into two operating segements of wholesale and international, alongside enterprise and government. The move has likely come about in an effort to ramp up sales across the legacy Vocus business that possesses potential, but has recently floundered with operational, staffing and administrative issues across several of its businesses including the recently acquired Nextgen Networks.

Vocus is also constructing a 4,600km high-speed internet services cable connecting Singapore, Indonesia and Australia with expectations that it will go live in the first quarter of fiscal 2019.

Despite management boasting of a promising pipeline of significant clients to sell capacity on the cable to, it is yet to announce any official paying customers.

As such the reorganisation may be related to the need to focus on Australia Singapore Cable sales in order to justify the significant investment into it.

Management is also in the process of an attempt to sell off its New Zealand home broadband businesses and Australian data centre assets. The group will hand in its half-year results on February 20 and 2018 could be another volatile year for shareholders.

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Motley Fool contributor Tom Richardson owns shares of Vocus Communications Limited. The Motley Fool Australia owns shares of and has recommended 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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