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vodafone.com.au

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Partners & Customers

5

About Vodafone Australia

Vodafone Australia is mobile telecommunications company that operates the Vodafone brand in Australia.

Vodafone Australia Headquarter Location

177 Pacific Hwy

North Sydney, New South Wales, 2060,

Australia

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Latest Vodafone Australia News

How a Teoh sell-out could benefit TPG

May 22, 2022

Share TPG Telecom is only looking as far forward as July 13. The date, scribbled away in the diary of the company’s investor relations and corporate affairs staff, is when TPG’s reclusive founder David Teoh gets his first chance to cash out a 14.21 per cent stake escrowed for two long years following the $15 billion merger with Vodafone Australia in early 2020. TPG founder David Teoh resigned suddenly in March. Eddie Jim If the past indicates anything, it will be a bloodbath for TPG on the ASX if Teoh takes this chance. When he retired from the board , shares fell 6.4 per cent in a single trading session, wiping almost $1 billion from the company’s market value. When he sold a small part of his stake in line with the merger escrow agreement last December, investors retreated with him. With TPG shares down 8 per cent to $5.97 in the past six months, it is a relatively spooky prospect to have another big sell down on the horizon – but a Teoh sell-out is precisely what some are egging on. The idea is that TPG will unlock enough free-floated shares for its value to be properly reflected if the former chairman were to significantly sell-down. Advertisement But what extra value, if any, is there to be unlocked? Analysts are overwhelmingly bullish on TPG, with the consensus target price about $7.18 according to Bloomberg. It is a staggering 17 per cent premium to the company’s last close, with nine of the 12 analysts that cover the stock recommending it to clients as a “buy”, and the last three have “hold” ratings. Strong international brand JPMorgan’s Mark Busuttil last week raised his 12-month projection for TPG from $7.25 to $7.50 as mobile subscriber growth starts again as border rules relax and the $950 million tower asset sale allows the telco to reduce debt leverage. On mobile subscriber growth, he says the company’s competitive advantage has always been the “strong international brand of Vodafone”. This suffered during COVID-19, as inbound and outbound travel were curtailed to such a significant extent, leading to a subscriber downturn through 2020 and 2021. Advertisement The company said momentum was improving in February and, at its annual shareholder meeting a few weeks ago, announced that growth had returned. After adding 70,000 new mobile subscribers during the March quarter, the market is well ahead of Mr Busuttil’s prediction that TPG would gain just 69,000 new subscribers in the six months to June. “We have since adjusted our forecast for the June half to 112,000 subscribers in the half, implying further growth of 42,000 in the June 2022 quarter,” he says. Per-user revenues are also expected to improve as subscribers start to incur roaming fees while travelling internationally for the first time in nearly two years. Towers sale opens door to future dividends Cash inflows of about $890 million from the towers sale will de-leverage the company and open the door for capital returns to investors as there are “no foreseeable or obvious acquisitions to be made”. Advertisement “We find it more likely that the company will opt for increased dividends rather than buybacks given the current low level of liquidity,” Mr Busuttil says. Any re-rating of the stock, however, relies on the release of escrowed shares. “This could be perceived as a risk,” Mr Busuttil says, citing the potential sale from Mr Teoh. “While we believe this would be a short-term headwind, it would not change the fundamentals and would benefit the stock’s free float.“ The last uncertainty, as ever for the Australian telecoms industry, is the national broadband network and the home internet market, as Goldman Sachs analyst Kane Hannan pointed out last week. Mr Hannan – one of the few analysts with a “neutral” or “hold” rating on the stock, before the likely release of the NBN’s preliminary pricing paper as soon as Monday – wrote that lowered access pricing may actually hurt the big telcos given the vast resources they have sunk into fixed-wireless solutions. TPG, in particular, has lent hard into fixed-wireless home solutions as they operate on a far higher margin than the very low margins of NBN reselling. Advertisement “Any change that lowered NBN access pricing could ultimately be a negative for earnings as it reduces profitability of substitute on-net networks,” Mr Hannan says. “Given elevated NBN competition from loss-leaders that focus on other profit pools ... and telcos that are focusing on retaining customers to migrate to [fixed-wireless], we expect the majority of any potential savings would be passed onto consumers.“ He said, on balance, NBN is likely to propose a hybrid pricing model, which will result in no substantial change in access pricing while momentum for fixed-wireless offerings grows, mimicking trends in the US. Lucas Baird is a journalist based in The Australian Financial Review's Sydney office. Connect with Lucas on Twitter . Email Lucas at lucas.baird@afr.com Save

Vodafone Australia Acquisitions

1 Acquisition

Vodafone Australia acquired 1 company. Their latest acquisition was TPG Telecom on February 13, 2020.

Date

Investment Stage

Companies

Valuation
Valuations are submitted by companies, mined from state filings or news, provided by VentureSource, or based on a comparables valuation model.

Total Funding

Note

Sources

2/13/2020

$99M

Acq - P2P

13

Date

2/13/2020

Investment Stage

Companies

Valuation

$99M

Total Funding

Note

Acq - P2P

Sources

13

Vodafone Australia Partners & Customers

5 Partners and customers

Vodafone Australia has 5 strategic partners and customers. Vodafone Australia recently partnered with Nokia on January 1, 2020.

Date

Type

Business Partner

Country

News Snippet

Sources

1/8/2020

Vendor

Finland

Vodafone Australia taps Nokia for 5G network

Vodafone Australia taps Nokia for 5G network

2

12/31/2019

Partner

Hong Kong

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10

9/13/2018

Partner

United Kingdom

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10

3/2/2018

Vendor

United States

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10

8/21/2014

Vendor

Sweden

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10

Date

1/8/2020

12/31/2019

9/13/2018

3/2/2018

8/21/2014

Type

Vendor

Partner

Partner

Vendor

Vendor

Business Partner

Country

Finland

Hong Kong

United Kingdom

United States

Sweden

News Snippet

Vodafone Australia taps Nokia for 5G network

Vodafone Australia taps Nokia for 5G network

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Sources

2

10

10

10

10

Vodafone Australia Team

3 Team Members

Vodafone Australia has 3 team members, including former Chief Financial Officer, Mark Steinberg.

Name

Work History

Title

Status

Mark Steinberg

Chief Financial Officer

Former

Benoit Hanssen

Chief Technology Officer

Former

Peter Abery

Managing Director

Former

Name

Mark Steinberg

Benoit Hanssen

Peter Abery

Work History

Title

Chief Financial Officer

Chief Technology Officer

Managing Director

Status

Former

Former

Former

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