Vocus nose-dives post the Telecom player axed its guidance
Vocus Group Ltd (ASX: VOC) stock price plunged over 27% on May 03, 2017 as the group downgraded its revenue estimates to ~$1.8bn from the prior guidance of ~$1.9bn for FY17. This has come at the back of an impact caused by an accounting review of the negotiated contract terms on several large projects included in the 2HFY17. The ~40mn revenue associated with these projects will be predominantly recognized in future periods rather than recognized as an upfront contribution in FY17. In order, $45mn positive cash flow benefit of these contracts is expected to be across FY17 and FY18. Further, the divestment of the Aggregato Australia business and the Cisco HCS voice platform of ~$20m revenue has a negligible earnings impact and a $12mn lower than forecast billings is expected in the Enterprise & Wholesale division.
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