Superloop, Aussie Broadband shares gain as Citi flags growing market share
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The news: Shares in challenger telecommunications businesses Superloop and Aussie Broadband lifted in afternoon trade after Citi analysts flagged “solid August metrics”.
The numbers: At 3:12pm AEST, shares in Superloop gained 4.2% to $3.34 while shares in Aussie Broadband lifted 3.4% to $5.68.
The context: In a research note, Citi analysts flagged that “app downloads continued their upward trajectory for [Aussie Broadband] and [Superloop] in August, illustrating growing market share”.
The analysts also said that the two challenger telcos have benefited from recent price changes and promotional activity.
What they said: “While we appreciate that these are still early days, feedback for challenger telcos have been encouraging with solid net-adds but no meaningful step change in churn,” the research note reads.
“Further to this, there has been increasing take-up of 500Mbps plans in the first week post-speed acceleration [for NBN]. We expect ABB and SLC to be net beneficiaries of this discontinuity event, particularly given their value proposition, network performance, and larger market share in higher-speed plans.”
The source: Citi research
