Vocus shares have slipped with investors apparently unconvinced by the internet providers’ strategy to lift its underperforming retail arm.
Vocus, which in the past two months has been approached and then spurned by potential buyers AGL and EQT Infrastructure, has divided its operations into three independent business units, including a low-cost retail business reselling broadband, mobile and energy services.
The Dodo and iPrimus owner said on Wednesday the restructure will lift underperforming retail operations hit by customers moving to cheaper NBN plans.
“The turnaround will be driven by a move to a low cost digital operating model with greater automation of sales, marketing and customer care, along with a diversification of its product portfolio to increase revenue generated from mobiles and energy,” Vocus said.
Vocus last month lost nearly a third of its value after AGL Energy abandoned a $3.02 billion takeover bid less than a week after making a second tilt at the internet provider.
AGL’s second bid came less than a week after Swedish private equity firm EQT Infrastructure scrapped its own $3.3 billion takeover tilt at the telco firm.
Vocus on Wednesday reaffirmed its FY19 underlying earnings guidance but flagged that retail headwinds will continue to cloud its outlook.
Shares in the company fell by as much as 5.0 per cent to $3.125 and at 1430 AEST were still 3.04 per cent lower at $3.19.