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Why the Vocus Group Ltd (ASX:VOC) share price has hit the skids

The Vocus Group Ltd (ASX: VOC) share price is down 3% to $3.33 at the time of writing as the market struggles to digest the latest AGM out of the telecommunications provider.

Vocus management reiterated an uptick in revenue by 2% to $1.9 billion and an underlying EBITDA rise of 7% to $366 million for FY18, but with CEO Kevin Russell admitting the second half of FY19 was not expected to be stronger than the first half, you can understand if investors were hoping for a rosier outlook.

Vocus has plenty of projects in its pipeline, but the likes of Telstra Corporation Ltd (ASX: TLS) and TPG Telecom Ltd (ASX: TPM) are dominating the headlines in the sector and that’s unlikely to change for some time as the advent of 5G technology looms.

But Russell said the company had a goal to double revenue in its Enterprise, Government and Wholesale segments within five years, so perhaps its just a matter of waiting a bit longer for Vocus to prove itself?

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Motley Fool contributor Carin Pickworth owns shares of Telstra Limited. The Motley Fool Australia owns shares of and has recommended Telstra Limited. The Motley Fool Australia has recommended 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 Scott Phillips.

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