Voyage Australia Pty Ltd.

Overview Key strengths Key risks Contractual revenue profile in key Vocus Network Services (VNS) business. Contract renewal risk for the main VNS business. Extensive fiber and network services infrastructure. Smaller size and scale, compared with industry peers. Shareholder support, including dividend deferral to fund capital expenditure (capex). Competitive markets, particularly in low-margin retail. Leveraged capital structure with about Australian dollar (A$) 1.5 billion of term loan B debt outstanding. In our view, the company's geographically diverse fiber network underpins its competitive advantage in maintaining or expanding its contractual revenue base. About 70% of Voyage's enterprise revenue and more than half its wholesale revenue in its VNS business in fiscal year 2023 (ended June 30, 2023) was contracted. Voyage's customers with

...Recurring revenue from Voyage Australia Pty Ltd.'s (Voyage's) VNS business with low customer churn underpins the company's business position. In our view, the company's geographically diverse fiber network underpins its competitive advantage in maintaining or expanding its contractual revenue base. About 70% of Voyage's enterprise revenue and more than half its wholesale revenue in its VNS business in fiscal year 2023 (ended June 30, 2023) was contracted. Voyage's customers with no contract end dates or those whose matured contracts have continued on essentially the same terms, show more stickiness, with weighted average tenures of almost 12 years, compared with about 6.0 years for contracted customers. The...

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