Tag: Motley Fool

The Unibail-Rodamco-Westfield CDI (ASX: URW) share price is climbing today after the company announced the sale of a major office building in France. The Unibail share price is currently trading 6.76% higher at $3.00.

What does Unibail do?

Unibail is the largest listed real estate company in Europe. The company is classified as a retail real estate investment trust (REIT) on the S&P/ASX 200 Index (ASX: XJO).

Unibail focuses its operations on big shopping centres in major European cities, including the large office buildings in the heart and west of Paris, France, and major convention and exhibition venues in and around Paris.

Why happened today?

Unibail announced a deal this morning to sell the SHiFT office building in Paris for 620 million euros. The sale price represents a premium on the 30 June book value. However, shareholders should note that the transaction is subject to standard conditions and is expected to be completed by January 2021.

The SHiFT office building is located in the business district of Issy-les-Moulineaux (Paris) with a total area of 47,200 sqm. The property is currently leased to Nestlé for its French headquarters on a 12-year agreement.

What now for the Unibail share price

The transaction is part of the REIT’s 9 billion euro reset plan to strengthen the group’s balance sheet in response to COVID-19. On completion of the sale, the group will have generated 5.3 billion euros of net disposal proceeds since June 2018.

The Unibail share price has been on a downward spiral since the start of the pandemic. Despite this rare uptick in share price, shareholders are likely to be wary of the damage rising numbers of COVID-19 cases in Europe may have on the company’s shares.

The Unibail share price has fallen a huge 73% since the start of 2020.

More reading

• ASX 200 up 0.9%: Telstra dividend update, Afterpay & Xero hit record highs
• 5 things to watch on the ASX 200 on Tuesday
• The Zip (ASX:Z1P) share price soars as Citigroup says 1Q update to surprise
• ASX 200 ends higher, Link (ASX:LNK) share price shoots 24% higher
• Why ASX oil stock laggards are well placed to bounce in the COVID recovery trade

Motley Fool contributor Daniel Ewing has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post The Unibail (ASX:URW) share price is climbing today. Here’s why. appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/3iNmEbi

This morning Australia’s leading investment platform provider CommSec released data on the most traded ASX shares on its platform from last week.

While there are once again some familiar faces, there are also a couple of very surprising additions to the top five this week.

Here’s the data:

Zip Co Ltd (ASX: Z1P)

This buy now pay later provider was the most popular share on the CommSec platform last week and accounted for 3.7% of total trades. Although just 44% of these trades came from the buy side, it was enough to lift the Zip share price by a sizeable 16.5%. The catalyst for this was news of tax cuts and a positive update from rival Sezzle Inc (ASX: SZL).

Mesoblast limited (ASX: MSB)

Mesoblast shares were popular with retail investors last week. The biotech company’s shares were responsible for 2.7% of trades on the platform. Almost two-thirds of these trades came from buyers, who may believe that a recent crash in the Mesoblast share price has created a buying opportunity. That decline was driven by an unfavourable decision by the US FDA at the start of the month. Mesoblast shares rose 5.6% last week.

American Rare Earths Ltd (ASX: ARR)

The first surprise addition to the top five was this small mineral resources company. It accounted for 1.8% of trades on the CommSec platform. The catalyst for this was news that US President Donald Trump had signed an Executive Order which declared it a national emergency for the US to increase its rare earths mining and processing capacity. The American Rare Earths share price rocketed 160% higher over the week.

Estrella Resources Ltd (ASX: ESR)

This junior exploration company is another surprise addition to the top five this week. Its shares were in demand with investors last week after announcing a significant nickel sulphide discovery at its Carr Boyd nickel project in Western Australia. Estrella Resources shares accounted for 1.6% of trades on the platform, with 60% coming from buyers. Those buyers will be pleased to learn that the Estrella Resources share price recorded a weekly gain of over 350%.

Afterpay Ltd (ASX: APT)

Afterpay was popular with investors again last week and was responsible for 1.5% of trades on the CommSec platform. And despite almost two-thirds of these trades coming from sellers, it couldn’t stop the Afterpay share price from surging over 12% higher over the five days. A strong update from Sezzle and a favourable Federal Budget appeared to give its shares a lift.

More reading

• ASX 200 up 0.9%: Telstra dividend update, Afterpay & Xero hit record highs
• Why Afterpay, HUB24, NEXTDC, & Telstra shares are storming higher
• The Zip (ASX:Z1P) share price soars as Citigroup says 1Q update to surprise
• Ignore EBITDA and P/E ratios? This fundie does
• 3 reasons I still think the Zip (ASX:Z1P) share price is a buy

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of ZIPCOLTD FPO. The Motley Fool Australia owns shares of AFTERPAY T FPO. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post Zip and Estrella Resources were among the most traded shares on the ASX last week appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/3jUnVPh

At lunch on Tuesday the S&P/ASX 200 Index (ASX: XJO) has continued its remarkable run and is on course to record another strong gain. The benchmark index is currently up 0.9% to 6,187 points.

Here’s what is happening on the market today:

Telstra annual general meeting update.

The Telstra Corporation Ltd (ASX: TLS) share price is pushing higher on the day of its annual general meeting. Ahead of the virtual meeting, Telstra released its presentations. These included a summary of its performance in FY 2020, the progress it is making with its T22 strategy, and an update on its dividend. It is the latter which appears to have really caught the eye today. Telstra’s chairman advised that the Telstra board is looking into ways to maintain its 16 cents per share dividend in FY 2021 and beyond.

Tech shares hit record highs.

A very strong night of trade on the technology-focused Nasdaq index has given the local tech sector a big lift on Tuesday. This has led to the S&P/ASX All Technology Index (ASX: XTX) charging higher and taken a few tech shares to record highs. Two of note that have achieved this feat are payments company Afterpay Ltd (ASX: APT) and cloud-based business and accounting software provider Xero Limited (ASX: XRO).

Coal miners under pressure.

Australian coal miners such as Whitehaven Coal Ltd (ASX: WHC) have come under pressure today amid reports that the Chinese government has told state-owned energy companies not to buy Australian coal. One Chinese analyst told the AFR that he believed the move is “a political sanction against Australia.”

Best and worst ASX 200 performers.

The best performer on the ASX 200 on Tuesday has been the Unibail-Rodamco-Westfield (ASX: URW) share price with a 6% gain. This morning the shopping centre operator announced an agreement to sell its SHiFT office building for 620 million euros. The worst performer on the index is the Whitehaven Coal share price following the alleged Chinese ban on Australian coal.

More reading

• Why Afterpay, HUB24, NEXTDC, & Telstra shares are storming higher
• Why Austal, Challenger, Orocobre, & Whitehaven Coal are dropping lower
• New Chinese government threat leaves these ASX mining stocks on tenterhooks
• Telstra (ASX:TLS) share price in focus after AGM dividend update
• Telstra share price and 1 other ASX telecom trading near all time lows

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Xero. The Motley Fool Australia owns shares of and has recommended Telstra Limited. The Motley Fool Australia owns shares of AFTERPAY T FPO. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post ASX 200 up 0.9%: Telstra dividend update, Afterpay & Xero hit record highs appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/2SQeNiw

The S&P/ASX 200 Index (ASX: XJO) is on course to maintain its impressive winning streak on Tuesday. In late morning trade the benchmark index is up a sizeable 0.9% to 6,188.8 points.

Four shares that are climbing more than most today are listed below. Here’s why they are storming higher:

The Afterpay Ltd (ASX: APT) share price has climbed almost 4% to $95.49. Investors have been buying the payments company and other tech shares on Tuesday following a very strong night of trade on the tech-focused Nasdaq index. This has helped drive the S&P/ASX All Technology Index (ASX: XTX) 1.5% higher at the time of writing.

The HUB24 Ltd (ASX: HUB) share price is up 2% to $21.17. This follows the release of the investment platform provider’s first quarter update this morning. HUB24 revealed that its strong has form continued in FY 2021, with record first quarter inflows of $1.36 billion. Together with positive market movements of $436 million, this increased the company’s Funds Under Administration to a massive $19 billion. This is a solid 32% increase on the prior corresponding period.

The NEXTDC Ltd (ASX: NXT) share price has risen 2% to $13.42. This appears to have been driven by a broker note out of UBS this morning. According to the note, its analysts have retained their buy rating and lifted their price target on the data centre operator’s shares to $15.25 following its debt update on Monday. It notes that NEXTDC’s shares are still attractively priced in comparison to its global peers.

The Telstra Corporation Ltd (ASX: TLS) share price is up almost 2.5% to $2.85. Investors have been buying the telco giant’s shares after the release of its annual general meeting presentation. That presentation revealed that the Telstra board is looking into ways to maintain its 16 cents per share dividend in FY 2021 and beyond.

More reading

• Why the HUB24 (ASX:HUB) share price surged to a record high today
• Telstra (ASX:TLS) share price in focus after AGM dividend update
• Telstra share price and 1 other ASX telecom trading near all time lows
• Why NEXTDC (ASX:NXT) and these ASX 200 shares just hit record highs
• The Zip (ASX:Z1P) share price soars as Citigroup says 1Q update to surprise

James Mickleboro owns shares of NEXTDC Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Hub24 Ltd. The Motley Fool Australia owns shares of and has recommended Telstra Limited. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool Australia has recommended Hub24 Ltd. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post Why Afterpay, HUB24, NEXTDC, & Telstra shares are storming higher appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/3nMxZfl

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The coronavirus vaccine candidate being developed by Pfizer (NYSE: PFE) and BioNTech (NASDAQ: BNTX) is now undergoing its first regulatory review in North America. The two companies announced that their BNT162b2 has been accepted for a rolling review by Health Canada, that country’s healthcare regulatory authority.

A rolling review is one undertaken while a candidate is still in development; this is done in cases of urgent need, as with the current global pandemic.

No estimate was provided as to when Health Canada might complete its review; the two companies wrote that the regulator “will not make a decision on whether to authorise any vaccine being considered under rolling review until it has received the necessary evidence to support its safety, efficacy and quality.”

BNT162b2 is currently in phase 3 clinical trials, having reached that stage relatively quickly. As such, it is considered by many observers and pundits to be the leading COVID-19 vaccine candidate for approval.

According to Pfizer and BioNTech, around 37,000 participants have been enrolled in more than 120 testing sites around the world in the trials. Twenty-eight thousand of those patients have received the second dose of the two-dose vaccination.

Meanwhile, Pfizer and BioNTech continue to get their ducks in a row regarding the manufacture and distribution of BNT162b2 should it be approved for use. On Monday, the pair said they’ve signed an agreement to supply 1.5 million doses to New Zealand. The financial terms of the deal were not specified.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

More reading

• 3 reasons Pfizer and BioNTech will have coronavirus vaccine data before Moderna
• Johnson & Johnson (NYSE:JNJ) starts late-stage coronavirus vaccine clinical trial
• Coronavirus vaccine trial adverse event was probably unrelated to treatment
• Pfizer says it could know if its COVID-19 vaccine candidate works in October
• The surefire vaccine winner following AstraZeneca’s COVID-19 trial pause

Eric Volkman has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post Pfizer and BioNTech coronavirus vaccine accepted for rolling review in Canada appeared first on Motley Fool Australia.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

from Motley Fool Australia https://ift.tt/33RWv6Y

In late morning trade on Tuesday the S&P/ASX 200 Index (ASX: XJO) has continued its remarkable run and is charging notably higher again. At the time of writing, the benchmark index is up 0.8% to 6,182.4 points.

Four shares that have failed to follow the market higher today are listed below. Here’s why they are dropping lower:

The Austal Limited (ASX: ASB) share price is down 3% to $3.40. This appears to have been driven by profit taking after a solid gain over the last week. Prior to today, the shipbuilder’s shares were up a sizeable 12.5% in the space of a week. This has been driven by a couple of positive developments this month. One of which came on Monday, when Austal revealed that it has successfully completed acceptance trials in the Gulf of Mexico for littoral combat ship, USS Mobile.

The Challenger Ltd (ASX: CGF) share price is down over 1% to $4.17. This morning the annuities company announced its intention to issue a new subordinated, unsecured, perpetual convertible security. This will be the Challenger Capital Notes 3, which it hopes will raise approximately $250 million. It is launching the notes to ensure it remains well capitalised and positioned for future growth.

The Orocobre Limited (ASX: ORE) share price has fallen 2% to $2.83 despite there being no news out of the lithium miner. However, it is worth noting that lithium miners have been incredibly volatile of late. Concerns over Tesla’s plan to mine its own battery materials has weighed on investor sentiment in the industry in October.

The Whitehaven Coal Ltd (ASX: WHC) share price has sunk 5.5% lower to 93 cents. Investors have been selling Whitehaven and other coal miners on Tuesday after the Chinese government reportedly told state-owned energy companies not to buy Australian coal. The AFR quoted one Chinese analyst, who said that he believed the move is “a political sanction against Australia.”

More reading

• New Chinese government threat leaves these ASX mining stocks on tenterhooks
• Why is the Austal (ASX:ASB) share price on the move?
• 3 reasons why ASX lithium shares can surge in 2021
• Top brokers name 3 ASX shares to buy today
• ASX renewable vs coal shares: Which will win?

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Austal Limited. The Motley Fool Australia owns shares of and has recommended Challenger Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post Why Austal, Challenger, Orocobre, & Whitehaven Coal are dropping lower appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/3nM8efp

An ASX-listed company has been busted for failing to disclose to the market information regarding two deals worth more than $345 million.

Antares Energy (now known as Blue Star Helium Ltd (ASX: BNL)) in September 2015 made announcements on the sale of two assets for US$105 million and US$149 million.

The Federal Court on Friday found that the company breached the Corporations Act by omitting crucial details that the market should have known.

This information included:

• Wade Energy was the purchaser
• Antares hadn’t independently verified the capacity of Wade Energy to complete the purchases
• Wade Energy had told Antares that it hadn’t yet received all funding approval to complete the purchase of one of the assets

Former Antares director James Cruickshank was also found to have failed in “his duty as a director to act with the degree of care and diligence required” for allowing the company to breach.

A separate accusation that Cruickshank was “involved in” the breach was not upheld by the court.

Penalties for Blue Star and Cruickshank will be determined at a later hearing.

“The judgment in this case reinforces the importance of the continuous disclosure regime to maintaining the integrity of the Australian securities market,” Australian Securities and Investments Commission deputy chair Daniel Crennan QC.

“The omissions from the company’s announcements to the market in this case were clearly material and therefore an appropriate subject for this civil penalty action by ASIC.”

Justice Katrina Frances Banks-Smith said the point of the disclosure obligations was to provide the market with confidence.

“The object is to enhance the integrity and efficiency of capital markets by requiring timely disclosure of price or market sensitive information.”

More reading

• Forget gold! How I’d find the best shares to build a fortune after the stock market crash
• Why the Spirit (ASX:ST1) share price is shooting the lights out today
• Service Stream (ASX:SSM) share price higher on NBN update
• 3 takeaways from the Commonwealth Bank (ASX:CBA) annual general meeting
• Why the HUB24 (ASX:HUB) share price surged to a record high today

Motley Fool contributor Tony Yoo has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post ASX company busted hiding info on $345m sell-offs appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/3dj5ZLI

The stock market crash has caused some investors to sell shares to buy gold. While this plan may have been successful so far, over the long run the stock market’s recovery potential may mean that a portfolio of high-quality companies outperforms the precious metal.

With many stocks continuing to trade at bargain prices, now could be the right time to focus on identifying the best shares to buy for the long run. They may offer the highest return potential, as well as the lowest risks.

Buying the best shares after the stock market crash

Buying cheap shares after the stock market crash is a logical strategy. It means that you purchase assets at low prices, and could benefit from their recovery over the long run.

However, not all cheap stocks will recover from their current low levels. Some businesses may, for example, fail to overcome short-term economic challenges. Other companies could lack the right strategy through which to adapt to changeable market conditions. Therefore, it is important to buy high-quality companies that trade at attractive prices.

This may not necessarily mean that they are the cheapest shares around after the recent stock market crash. However, it can be wise to pay a premium for a higher-quality business that is more likely to deliver on your long-term profit goals.

Identifying the best shares today

The best shares to buy today could be those that remain unpopular following the stock market crash due to external reasons. In other words, they face a difficult set of operating conditions brought about by the global economic downturn. They are likely to have sound finances, solid growth strategies and competitive advantages that can turn their present weak financial performance into growing profitability over the long run.

Unearthing such companies may be best approached by searching within unpopular sectors, or industries that are currently facing a tough near-term outlook. For example, financial services firms may be negatively impacted more than other industries by a weak economic outlook. Similarly, energy companies, retailers and consumer goods businesses may need to make changes to their business models to benefit from future economic growth. Companies within those sectors may trade at low prices, and be in a position to record improving performances in the long run.

Buying undervalued stocks today

While gold may be an appealing defensive asset to hold after the stock market crash, its long-term growth prospects may be less attractive than a portfolio of the best shares. Its high price and a likely improvement in investor sentiment towards the stock market may limit its prospects.

Therefore, now may be the right time to build a portfolio of stocks that can deliver impressive returns and improve your financial position in the coming years.

More reading

• ASX company busted hiding info on $345m sell-offs
• Why the Spirit (ASX:ST1) share price is shooting the lights out today
• Service Stream (ASX:SSM) share price higher on NBN update
• 3 takeaways from the Commonwealth Bank (ASX:CBA) annual general meeting
• Why the HUB24 (ASX:HUB) share price surged to a record high today

Motley Fool contributor Peter Stephens has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post Forget gold! How I’d find the best shares to build a fortune after the stock market crash appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/310j7jK

Spirit Telecom Ltd (ASX: ST1) released its Q1 FY21 update to the market today, sending its shares flying in opening trade. The Spirit share price rocketed up 10.8% to 41 cents before dropping back to 39 cents, up 5.4%, at the time of writing. This compares to the All Ordinaries Index (ASX: XAO) which is marginally higher at 0.8% to 6,396 points.

Let’s take a look at how Spirit performed over the first quarter.

Record performance

Spirit announced record growth and scale in its quarterly update for the period ending September 30. The results were underpinned by the company’s strategy in the acquisition of 7 businesses and by improving internal efficiencies.

Total revenue for the quarter came to $15.6 million, up 149% year-on-year (YoY), and 30% above Q4 FY20. The result was predominately from recurring revenue which represented $9.2 million, up 78%. The solutions and projects division created revenue of $6.2 million, jumping 507% over the prior corresponding period.

TCV sales increased 124% YoY to $8.4 million, with pending installations at $2.7 million and IT services and technology sales at $8.9 million. The uplift was driven by expansion into managed services, including orders placed for the school’s notebook program.

Spirit recorded a healthy balance sheet of $30.1 million in cash and available debt as of 30 September.

Outlook

The company anticipates future growth coming into the second and third quarter for FY21. Spirit noted that its resellers segment was picking up with 70+ new resellers signed nationally, and more in play.

In addition, the telecom provider will launch new Spirit-branded mobile products and bundles across Australia in Q2–Q3.

The first unified voice communications platform, LiveCall and LivePBX will aim to operate at 75% gross margin.

Spirit advised it expects to see material demand for its products for the rest of the financial year. This is due to the Federal Government budget tax incentives that allow businesses to spend on IT needs.

In the acquisition space, the company said it was considering multiple targets as it focused on revenue growth.

What did management say?

Spirit managing director Sol Lukatsky welcomed the robust Q1 result. He said:

We have been able to integrate the businesses efficiently, enabling us to leverage the cross-sell opportunities that have been created. We have successfully bundled services and provided a product with outstanding customer service which has led to organic growth. This has been particularly pleasing to achieve during the COVID-19 pandemic.

With our latest acquisitions – VPD Group, Reliance, Beachhead and Altitude IT – we’ve grown our geographic footprint and expanded our national network for reselling products via Spirit Solutions Partners. This is another avenue for both organic and acquisitive growth into FY21 and beyond.

How has the Spirit share price tracked?

The Spirit share price has risen 95% since the beginning of the calendar year. With a market capitalisation of $200 million, the Spirit share price is trading just below its all-time high of 45 cents.

More reading

• The Azure Minerals (ASX:AZS) share price has rocketed 62%. Here’s why.
• Why the Mount Gibson (ASX:MGX) share price is moving higher today
• ASX 200 Weekly Wrap: Budget, US election sparks 5% surge in ASX shares
• Optiscan (ASX:OIL) share price flat on FDA update
• What’s driving the PayGroup (ASX:PYG) share price higher today

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia has recommended SPIRIT TC FPO. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post Why the Spirit (ASX:ST1) share price is shooting the lights out today appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/3lRRMIP

The Service Stream Limited (ASX: SSM) share price is edging higher today following an update on its agreement with the NBN.

At the time of writing the essential network services provider’s shares are up slightly to $2.18.

What did Service Stream announce?

This morning the company released an update on its Operations and Maintenance Master Agreement (OMMA) with NBN Co.

According to the release, the two companies have extended the OMMA for an additional six-month period from the end of December 2020.

It also includes the option for the NBN to extend the agreement for a further six months to December 2021. The OMMA contract has been running since 2015.

Today’s agreement will see Service Stream continue to be responsible for performing operations and maintenance field services for the NBN. This includes service activations and service assurance activities.

OMMA services will be provided across the NBN’s fixed line multi-technology network.

This includes Fibre to the Node (FTTN), Fibre to the Premise (FTTP), Fibre to the Basement (FTTB), Fibre to the Curb (FTTC) and Hybrid Fibre-Coaxial (HFC) technologies within defined contracted areas across Queensland, New South Wales, Australia Capital Territory, Victoria, Western Australia, and the Northern Territory.

What is the contract worth to Service Stream?

The revenue generated under the OMMA contract will be dependent on NBN activation and maintenance work volumes.

However, management notes that the agreement generated approximately $330 million in FY 2020 and $280 million in FY 2019.

Service Stream’s Managing Director, Leigh Mackender, was very pleased with the contract extension.

He commented: “We are delighted that by further extending the OMMA agreement, nbn has demonstrated continued confidence in Service Stream’s ability to support its national operations and the enhancement of its customers’ experience as they connect to the National Broadband Network.”

Mr Mackender also appears optimistic that this could be the start of a much longer agreement.

“We look forward to participating in nbn’s commercial procurement process to support a longer-term agreement being secured, post this current extension,” he concluded.

More reading

• 5 things to watch on the ASX 200 on Thursday
• ASX 200 Weekly Wrap: Bank shares push ASX 200 higher
• These were the best performing ASX 200 shares last week
• ASX 200 jumps 2.4% higher, numerous shares rise
• Why the Service Stream (ASX:SSM) share price is surging 14% higher today

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Service Stream Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post Service Stream (ASX:SSM) share price higher on NBN update appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/3jU636X