0

Dodo’s sale is all about scale

This week M2 telecommunications announced that they were spending $203.9m to buy Dodo, as well as bidding $44.1m for Eftel. It comes hot on the heels of their acquisition of iPrimus and solidifies their position as a significant consumer retail player.

Of course, Dodo got where it is today by selling on price. They undercut competitors on broadband, mobile and home phones, before recently diversifying into power, gas and insurance. This last year has seen a significant increase in their revenue but, as a reseller reliant on the infrastructure of others, their EBIT margin is very slim.

It’s another example of how companies are jostling for scale ahead of the NBN when everybody will be relying on the same government owned network with the same cost base.
On this week’s CrossTalk Phil Dobbie asks if, in this race for scale, price is all that matters these days.

You’ll hear from:
– Geoff Horth, CEO of M2 Communications;
– David Kennedy, Research Director & Principal Analyst, Ovum; and
– Ian Martin, Senior Equity Analyst, Telecommunications at CIMB Securities.

Leave a Reply

Your email address will not be published. Required fields are marked *

Scroll to top