Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Vodafone NZ squeezes cheaper deal from Vocus

Vodafone NZ squeezes cheaper deal from Vocus in contract renewal

By Paul McBeth

July 15 (BusinessDesk) - Vodafone New Zealand, the country's second-biggest internet service provider, has extended its international internet capacity supply contract with ASX-listed Vocus Communications for another two years at a cheaper rate.

Sydney-based Vocus, which this month agreed to buy local fibre optic cable network operator FX Networks for $115.8 million, renewed its contract with Vodafone NZ, its largest IP transit customer, with an estimated reduction in annual earnings before interest, tax, depreciation and amortisation of A$4.5 million in the 2015 financial year, it said in a statement to the ASX yesterday. From 2015 no customer will account for more than 5 percent of Vocus's revenue, it said.

"Despite the reduced contribution from Vodafone, Vocus continues to expect very strong Ebitda growth for FY 2015," it said.

The FX acquisition is estimated to have more than doubled Vocus's annual revenue to A$136 million and lifted Ebitda to A$36.7 million in calendar 2013.

Vocus describes itself as the leading independent provider of wholesale and telecommunications services in Australia and New Zealand, providing internet, fibre and ethernet, and data centre services.

Last month the Australian company announced the acquisition of a 10 percent interest in the Sea-Me-We 3 undersea cable linking Perth, Australia, with Singapore from Telecom New Zealand for US$2.3 million.

Shares of Vocus dropped 6.6 percent to A$5.14 yesterday, having soared 47 percent this year.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

ETS Review: Modelling Documents Released

Three technical documents are being released to help New Zealanders engage with the Emissions Trading Scheme (ETS) review, Climate Change Minister Paula Bennett says. More>>

ALSO:

Northland: Govt Plan Targets Transport, Web, Maori Assets

The government has released a 10-year plan to attract investors and lift economic growth in Northland, a region that perennially underperforms the rest of the country even while being endowed with natural beauty, productive land, minerals, a potential workforce, scope for manufacturing, forestry and aquaculture, and proximity to Auckland. More>>

ALSO:

Statistics: Unemployment Rate Falls To 5.3 Percent

The unemployment rate fell to 5.3 percent in the December 2015 quarter (from 6.0 percent), Statistics New Zealand said today. This is the lowest unemployment rate since March 2009. There were 16,000 fewer people unemployed than in the September ... More>>

ALSO:

Employment: Labour Urges Talley’s To End AFFCO Lockout

Labour has urged Talley’s to resolve the ongoing industrial dispute with AFFCO workers which is having a severe effect on the employees, their families and their communities, Labour’s Workplace Relations spokesperson Iain Lees-Galloway says. More>>

ALSO:

Three Kings: Govt To Oppose Appeal Blocking $1.2B Auckland Housing Plan

Environment Minister Nick Smith and Housing New Zealand have joined legal proceedings in support of Auckland Council and Fletcher Building opposing a bid by community groups to only allow low-rise housing in a $1.2 billion housing redevelopment on the disused site of the Three Kings quarry. More>>

ALSO:

Transport: Jetstar Expands Regional Network With Three New Routes

More New Zealanders than ever before will have access to Jetstar’s affordable flights when new services take off today from Auckland to New Plymouth and Palmerston North, and Nelson to Wellington. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news