Telecommunications provider Vocus has reaffirmed its financial guidance for the 2020 financial year.
The company saw strong growth in both its core network services and retail businesses as Australian customers seek connectivity amid the COVID-19 pandemic.
Vocus chief executive Kevin Russell said, “Being able to confirm all the parameters of our financial guidance – which was first provided almost 12 months ago in July 2019 – demonstrates the financial discipline, strength and resilience of Vocus’ business even in a period of significant economic disruption.”
The company expected EBITDA to be in the range of $359 to $369 million in the 2020 financial year.
“The quality of earnings continues to improve strongly, with EBITDA growth of approximately 10 percent expected in our core Vocus Network Services business. In addition, our portfolio of strong Retail brands has supported our customers’ needs for increasing connectivity during the crisis and has maintained strong cash collections.”
Vocus also revealed it refinanced and extended the duration of its debt facilities.
“Refinancing our debt and reaffirming guidance in the current market environment shows the underlying strength of Vocus’ business. The new loan facility is a strong platform that gives Vocus financial stability and flexibility as we enter the next phase of the company’s growth and business transformation,” Russell said.
“The refinancing was undertaken as part of our long-term funding strategy and commenced prior to the significant disruption in the global lending markets caused by COVID-19. It is a show of confidence that the syndication was oversubscribed during this period and I would like to thank our lenders who have continued to support the business and welcome our new syndicate partners.”