Search by ticker code:
Generic filters

Search by ticker code:
Generic filters

Search by ticker code:
Generic filters

Why Optus Is Boosting The Service Stream (ASX:SSM) Share Price

The share price of Service Stream Limited (ASX: SSM) is up, it has secured a deal with Optus,

Service Stream is an essential provider of network services to the telecommunications and utility sectors in all Australian states and territories. It has over 2,200 employees and also can utilise more than 3,000 contractors.

Service Stream’s Optus Deal

Service Stream announced that it has secured a wireless design & construction agreement with Optus.

The company said that the agreement is a panel arrangement in the form of a newly awarded ‘Statement of Works for Mobile Deployment with Optus.

Under the contract, Service Stream will initially provide site acquisition, design and construction services on the Optus network nationally for 5G.

The agreement also allows for site upgrades, small cell and RANCAP services with regards to existing 4G infrastructure, subject to future negotiations. The term of the statement of works is for three years, with the option of a one-year extension.

Managing Director Leigh Mackender said: “We are delighted to have been awarded this agreement by Optus. It is strategically significant for Service Stream in that we now have arrangements in place to provide acquisition, design and construction services on all three wireless networks in Australia.

Whilst, as is common in the wireless space, this new panel arrangement does not provide guaranteed volume, we estimate revenue at $40 million over the initial two years. We expect to commence works early in Q3 of FY20.”

Is The Service Stream A Buy?

The reaction for Service Stream’s share price has been quite muted, it’s up only 0.2%. But it has performed quite well since the start of the year, its share price has gone up almost 50% in 2019.

Service Stream continues to win new contracts and FY19 was a solid result with revenue going up 35%, reported EBITDA (click here to learn what EBITDA means) rose by 33% and statutory net profit increased by 21%. Not bad for a business priced at 20 times the 2019 financial year earnings. It could be a good small cap to keep an eye on, but the growth shares revealed for free in the report below could be even better.

[ls_content_block id=”14947″ para=”paragraphs”]

[ls_content_block id=”18380″ para=”paragraphs”]

$50,000 per year in passive income from shares? Yes, please!

With interest rates UP, now could be one of the best times to start earning passive income from a portfolio. Imagine earning 4%, 5% — or more — in dividend passive income from the best shares, LICs, or ETFs… it’s like magic.

So how do the best investors do it?

Chief Investment Officer Owen Rask has just released his brand new passive income report. Owen has outlined 10 of his favourite ETFs and shares to watch, his rules for passive income investing, why he would buy ETFs before LICs and more.

You can INSTANTLY access Owen’s report for FREE by CLICKING HERE NOW and creating a 100% FREE Rask Account.

(Psst. By creating a free Rask account, you’ll also get access to 15+ online courses, 1,000+ podcasts, invites to events, a weekly value investing newsletter and more!)

Unsubscribe anytime. Read our TermsFinancial Services GuidePrivacy Policy. We’ll never sell your email address. Our company is Australian owned.

Information warning: The information on this website is published by The Rask Group Pty Ltd (ABN: 36 622 810 995) is limited to factual information or (at most) general financial advice only. That means, the information and advice does not take into account your objectives, financial situation or needs. It is not specific to you, your needs, goals or objectives. Because of that, you should consider if the advice is appropriate to you and your needs, before acting on the information. If you don’t know what your needs are, you should consult a trusted and licensed financial adviser who can provide you with personal financial product advice. In addition, you should obtain and read the product disclosure statement (PDS) before making a decision to acquire a financial product. Please read our Terms and Conditions and Financial Services Guide before using this website. The Rask Group Pty Ltd is a Corporate Authorised Representative (#1280930) of AFSL #383169.

Skip to content