Solid full-year result for Vocus NZ

Vocus NZ made solid gains across the board for its financial year to June 30.

The owner of Orcon, Slingshot and Flip saw its revenue increase 5 per cent to $380m as both its consumer (8 per cent) and enterprise and wholesale (1 per cent) divisions registered gains.

Underlying earnings increased 3 per cent to $62.9m.

The telco's broadband customers increased 5 per cent to 203,000, consolidating its position as our third-largest landline player behind Spark and Vodafone.

Within that, copper broadband customers fell 25 per cent to 92,000, while UFB fibre connections jumped 54 per cent to 111,000 - putting fibre customers in the majority for the first time.

Average revenue per broadband customer per month also edged up to $71.61 from the year-ago $70.05.

Vocus NZ boss Mark Callander said the 8 per cent bump in consumer broadband "was achieved with an increased focus on higher-value customer segments and the bundling of energy and mobile."

Energy customers increased from 59 per cent from 17,000 to 27,000.

Mobile customers jumped from 21 per cent from 24,000 to 29,000.

Callander has been pushing for regulatory change to allow virtual mobile network operators, such as his company, to offer more competitive plans - an area where he sees the Commerce Commission so far falling short.

Vocus, in partnership with Vodafone NZ, has also been agitating to unbundle UFB fibre.

A law change, which is being phased in from 2020, allows retail telcos to put their own electronics on Chorus' wholesale network, giving them more control over plans and pricing.

But the legislation does not say at what price. Vocus and Vodafone have complained that the first pricing offer put on the table by Chorus is cynical and uneconomic. The Commerce Commission is refereeing. The bunfight still hangs in the balance.

"Fibre unbundling remains a key part of our strategy to drive further innovation and investment into the NZ market moving forward," Callander told the Herald.

The ASX-listed Vocus Group reported an overall full-year net profit that was down 44 per cent to A$34m, but with guidance.

Revenue was up 0.4 per cent to A1.90 billion.

Underlying Ebitda was down 2 per cent to A$360m but Vocus forecast a modest increase in underlying earnings for 2020, made sharp gains in its core network business, and claimed it had reached "orgnisational clarity" as it worked through its three-year turnaround plan.

Investors seemed cheered, with shares jumping 10 per cent to A$3.20 after the full-year result was announced.

Group chief executive Kevin Russell said the solid performance, and detailed financials released through the ASX, should silence "rumour and innuendo" over why two recent private equity bids for the company fell through.

Jarden kept its neutral rating on Vocus post-result and maintained its 12-month target price of A$3.40.