Vocus FY17 guidance reveals $105M below the line expenses

Company News

by David Chau

At its AGM today, Vocus Communications Ltd (ASX:VOC) confirmed it will soon appoint a new Chief Financial Officer. In the meantime, Vocus’ commercial and regulatory head, John Allerton, will be its interim CFO.

The company also provided its guidance for the 2017 financial year. It’s expecting underlying EBITDA to be in the range of $430M to $450M.

As for Vocus’ underlying NPAT, that’s expected to range from $205M to $215M – and the company’s FY17 revenue is expected to be around $1.9 billion.

However, the company says $105 million in below the line expenses will appear on its next balance sheet – the costs of the Nextgen acquisition and M2 merger, totalling $17 million. Other expenses include $61 million in non cash amortisation of acquired customer intangibles, and the amortisation of software intangible uplift at $27 million.

Vocus posted a $64.3 million net profit at 30 June 2016.

David Chau

Finance News Network
David joined FNN in April 2016. In addition to presenting the Market Outlook and latest business news stories, David interviews senior economists and CEOs of ASX-listed companies. Prior to working for FNN, David was a litigation lawyer.