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MACQUARIE TELECOM GROUP LIMITED (MAQ)

MACQUARIE TELECOM GROUP LIMITED (MAQ)

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General Information
Company Name: Macquarie Telecom Group Limited
Stock Code: MAQ
Website: www.macquarietelecom.com
GICS Sub-Industry: Integrated Telecommunication Services
Market Cap ($M): 189
Equiv. Shares (M): 21

Current Price Data+
Current Price Open High Low Last Close Volume Price Movement
 $ 9.000 $ 9.100 $ 9.100 $ 9.000 $ 9.250 1,387 $ -0.250  -2.703 %

Current Broker Consensus Recommendation more
Recommendation: Buy
Recommendation Date: 8th Mar 2012
12 Month Target Price (average): $9.9
Brokers Surveyed: 1

Company Overview

Business Description:
Macquarie Telecom Group Limited (MAQ) operates as a provider of telecommunications services to corporate and government customers within Australia. MAQ focuses on positioning itself as an integrated information technology and telecommunications carrier. MAQ operates in four primary divisions; voice, data, hosting, and mobiles.

Strategy Analysis:
Macquarie Telecom’s objective is to be Australia’s number one Managed Hosting and integrated Telco provider to business and government customers through the delivery of service excellence. MAQ expect to complete the construction of the Intellicentre 2 data center and continue to invest in our Cloud Computing capabilities, to position Macquarie Telecom for strong future growth. Macquarie Telecom Group reported NPAT up 13.8% to $11.07m for the half-year ended 31 December 2011. Revenues from ordinary activities were $113.58m, down 3.41% from the same period last year. Diluted EPS was 52.8 cents compared to 46.5 cents last year. Net operating cash flow was $13m compared to $17.53m last year. The interim dividend declared was 12 cents compared with 10 cents last year.


Financial Summary
Year to Jun NPAT EPS EPS chg (%) PER DPS Yield (%) Franking (%)
2013  F 19.0 91.3 8.6 9.9 26.9 3.0 --
2012  F 17.5 84.1 -0.5 10.7 25.5 2.8 --
2011  A 17.7 84.5 -1.9 10.2 22.0 2.6 100.0
Source: Aspect actuals / Thomson IBES estimates

Peer Comparison
EPS Growth (%) P/E (%) Dividend Yield (%)
Company Mkt Cap 2011 A 2012 F 2013 F 2011 A 2012 F 2013 F 2011 A 2012 F 2013 F
Chorus (CNU) $951 M -- -- 0.2751 -- 7.1387 5.5984 0.0000 0.0706 0.0870
Macquarie Telecom Group (MAQ) $194 M -0.0185 -0.0043 0.0850 10.9467 10.9936 10.1325 0.0238 0.0276 0.0290
Telecom NZ (TEL) $3,831 M -0.0466 0.2111 0.1285 16.1777 13.3580 11.8366 0.0555 0.0907 0.0761
Telstra (TLS) $43,924 M -0.1664 0.0951 0.0623 13.5301 12.3556 11.6310 0.0793 0.0793 0.0793
TPG Telecom (TPM) $1,365 M 0.3311 0.4163 0.1903 17.0466 12.0364 10.1117 0.0262 0.0323 0.0374

Market Comparison
Earnings P/E Ratio P/B Ratio P/E Growth P/S Ratio
MAQ 0.20 10.69 2.46 2.71 0.83
Market 0.80 12.1 1.33 1.35 1.68
Sector 0.20 12.3 2.34 0.95 1.69

Directors
Name Position Start Date
Mr David Tudehope Chief Executive Officer 01 January 1992
Mr Aidan Tudehope Managing Director 01 January 1992
Mr Robert A Kaye Non-Executive Chairman 19 June 2001
Mr Peter Richard James Non-Executive Director 02 April 2012
Mr John Palfreyman Non-Executive Director 26 July 2004
Mrs Anouk Darling Non-Executive Director 22 March 2012

Management
Name Position
Michael Simmonds Chief Financial Officer
Richard Lutterbeck Company Secretary
C Greig Group Executive, Telco Business
S Gatward Group Executive, Telecom Services

Substantial Shareholders
Holding Name
12,501,390 (59.94%) Claiward Pty Ltd
1,653,320 (7.93%) J P Morgan Nominees Australia Limited
1,497,857 (7.18%) National Nominees Limited

Calendar of Events
Date Event
21 February 2013 Report (Interim)
19 October 2012 Report (Annual)
23 August 2012 Report (Prelim)
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