Financial News, Analysis and Data, FNArena

FNArena

Financial News, Analysis and Data

Online financial media company focused on Australian equities, with a global perspective

Equity Bottom-Up

<ul><li>FNArena's Treasure Chest reports on money making ideas from stockbrokers and other experts.</li><li>Today's idea is Telstra Group.</li></ul>

FNArena's Treasure Chest reports on money making ideas from stockbrokers and other experts.Today's idea is Telstra Group.

<ul><li>Telstra's FY26 results weren't bad, but they have raised questions about the telco's premium valuation against slowing postpaid growth, higher capex and rising competition.</li><li> Telstra's valuation has opened up debate about its 'expensive defensive' premium An ongoing slowdown in postpaid mobile and softer FY27 guidance weigh on general sentiment Ongoing defensive qualities and the mighty free cash flow generation support capital management What exactly will be the impact from new satellite technologies remains up for debate</li></ul>

Telstra's FY26 results weren't bad, but they have raised questions about the telco's premium valuation against slowing postpaid growth, higher capex and rising competition. Telstra's valuation has opened up debate about its 'expensive defensive' premium An ongoing slowdown in postpaid mobile and softer FY27 guidance weigh on general sentiment Ongoing defensive qualities and the mighty free cash flow generation support capital management What exactly will be the impact from new satellite technologies remains up for debate

FY26 Result Puts Telstra's Premium In Focus

<ul><li>Telstra is guiding to subdued mobile growth in FY26 as the cost of living bites.</li><li>Earnings growth relies on cost cutting and satellite development.</li><li> -Telstra&rsquo;s FY25 in line, FY26 prognosis subdued -Cost of living driving customers to cheaper options -Major staff reductions to drive cost-outs -Satellite service critical to maintaining dominance</li></ul>

Telstra is guiding to subdued mobile growth in FY26 as the cost of living bites.Earnings growth relies on cost cutting and satellite development. -Telstra&rsquo;s FY25 in line, FY26 prognosis subdued -Cost of living driving customers to cheaper options -Major staff reductions to drive cost-outs -Satellite service critical to maintaining dominance

Buybacks, Dividends Define Telstra's Future

Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, IPOs & Placements

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

Equity Capital Markets

<ul>
<li>
<a href="https://www.smartkarma.com/entities/guzman-y-gomez" target="_blank" data-smartkarma-citation="entities:43656:1" rel="noopener">Guzman Y Gomez</a> plans to raise around US$160m in its Australian IPO.</li>
<li>GYG is a quick service restaurant business with more than 200 restaurants globally. It mainly focuses on fresh, made-to-order, Mexican-inspired food.</li>
<li>In this note, we talk about the not-so-positive aspects of the deal.</li>
</ul>



Guzman Y Gomez plans to raise around US$160m in its Australian IPO.
GYG is a quick service restaurant business with more than 200 restaurants globally. It mainly focuses on fresh, made-to-order, Mexican-inspired food.
In this note, we talk about the not-so-positive aspects of the deal.


Guzman Y Gomez IPO - The Negatives - Lawsuits and Management Churn

Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

Singapore Telecommunications / Event-Driven

<ul>
<li>Reportedly (AFR), <strong><a href="https://www.smartkarma.com/entities/singapore-telecommunications" target="_blank" data-smartkarma-citation="entities:20:1" rel="noopener">Singtel (ST SP)</a></strong> is in advanced talks to sell Optus, Australia’s second-largest telco, to Brookfield for A$16bn-A$18bn. </li>
<li>SingTel quickly <a href="https://links.sgx.com/FileOpen/SGX%20Announcement%2020240313.ashx?App=Announcement&amp;FileID=791796" target="_blank" rel="noopener">countered</a> there is no impending deal; and "<em>Optus remains an integral and strategic part of the Singtel Group and we are committed to Australia for the long term</em>."</li>
<li>Optus' EBITDA in 3Q24 and 9M24 fell 1.8% and 8.3% in S$ terms. Extrapolating out for FY24E suggests pricing under this (very) indicative Offer of around 7.6-8.6 turns of EBITDA.</li>
</ul>


Reportedly (AFR), Singtel (ST SP) is in advanced talks to sell Optus, Australia’s second-largest telco, to Brookfield for A$16bn-A$18bn. 
SingTel quickly countered there is no impending deal; and "Optus remains an integral and strategic part of the Singtel Group and we are committed to Australia for the long term."
Optus' EBITDA in 3Q24 and 9M24 fell 1.8% and 8.3% in S$ terms. Extrapolating out for FY24E suggests pricing under this (very) indicative Offer of around 7.6-8.6 turns of EBITDA.


Optus Sale Would Be A BIG Payday For SingTel

Australia

Telstra Corporation Limited is a full service domestic and international telecommunications provider for Australia.  The Company provides telephone exchange lines to homes and businesses, supplying local, long distance and international telephone calls and supplying mobile telecommunications services. Telstra also provides data, internet, on-line services and directory services.

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Telstra Corp (TLS AU)

Treasure Chest: Telstra Group

FNArena's Treasure Chest reports on money making ideas from stockbrokers and other experts. Today's idea is Telstra Group.

FNArena

FY26 Result Puts Telstra's Premium In Focus

Telstra's FY26 results weren't bad, but they have raised questions about the telco's premium valuation against slowing postpaid growth, higher...

FNArena

Buybacks, Dividends Define Telstra's Future

Telstra is guiding to subdued mobile growth in FY26 as the cost of living bites. Earnings growth relies on cost cutting and satellite...

FNArena

Guzman Y Gomez IPO - The Negatives - Lawsuits and Management Churn

Guzman Y Gomez plans to raise around US$160m in its Australian IPO. In this note, we talk about the not-so-positive aspects of the deal.

Sumeet Singh

Optus Sale Would Be A BIG Payday For SingTel

SingTel is a deep value play, and an inexpensive entry into Bharti; yet the market pushes the implied stub further into negative territory. A sale...

David Blennerhassett

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