Friday, 25 September 2020

Vocus urgently addresses Commander turnaround challenge

Kevin Russell - Managing director and CEO, Vocus Group

Kevin Russell – Managing director and CEO, Vocus Group

Credit: Vocus Group

Vocus is urgently addressing the significant turnaround challenge it faces within its SMB business, Commander, after it suffered 15 per cent decline in revenue to $203.9 million for the 2018 financial year.

Some of the reasons for the decline include accelerating migration to the national broadband network; VoIP and mobile solutions.

Vocus pointed out its key priorities involved focusing on customers and to re-establish the brand and distribution presence.

The provider admitted that a cost reduction decision to eliminate marketing spend, has improved margins in the short-term, but to the detriment of the business.

“SMB is a growing segment of the ICT market. Commander is an established brand within this sector, albeit with less than five per cent market share,” Vocus said. “SMB is an important contributor to Vocus profitability and current issues are being urgently addressed.”

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