It's a good time for ASX telco stocks
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ASX telco stocks have emerged from COVID-19 on a solid note, on average 43 per cent higher than the year before.
This positive momentum has continued into the new year and you need look no further than recent listee Pentanet (ASX:5GG).
This stock only entered the ASX last Friday and has nearly tripled since its debut and saw a further boost today with good news.
The Perth-headquartered company finished 2020 with 8,386 new subscribers and since the new year has surpassed 10,000 subscribers – a figure that had more than doubled in less than 12 months.
Today the company lauded the figures and promised more growth was to come in Perth and eventually on the East Coast.
“Our fixed wireless network is already capable of faster downloads than typical NBN speeds in Perth and with the IPO funds just raised we are about to take the next step in technology, further elevating our offering in Perth,” said managing director Stephen Cornish.
“I am looking forward to the additional higher speed product options we are looking to bring to market and the fact that this new technology will add an increased level of scalability to our network delivery.”
Vonex is another to have seen rapid growth from a share price perspective, rising from 11 cents 12 months ago to 32 cents today.
In the first half hour of trading it gained over 25 per cent off the back of a new wholesale agreement with Orange Group to provide business grade mobile broadband services throughout Australia to Orange’s clients.
Orange’s Business Services division has 3,000 multinational clients in several sectors including mining, oil and gas and automotive.
“This agreement is testament to the growth and maturity of our offer to small, medium and enterprise customers as we are seeing strong growth across both existing and newly launched products,” declared Vonex’s boss Matt Fahey.
Pentanet was far from the first ASX telco stock to surge after listing. The last two years has seen another three telco IPOs and they’ve all performed well.
Uniti (ASX:UWL) listed at 20 cents and is now at $1.85 two years on.
It is a wholesaler telco that grew through acquisitions, one of which was fellow listee OptiComm (ASX:OPC) which ended up getting acquired for more than triple its listing price.
Residential telco Aussie Broadband (ASX:ABB) listed last October and has grown from $1 to over $2.50 this morning.
Aussie Broadband last updated its shareholders two weeks ago and it reported customer growth of over 80 per cent.
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