The Vocus Group Ltd (ASX: VOC) share price hit a 52-week high of $4 per share today as investors bet its turnaround strategy may pay off in 2019 and beyond.
When reporting its interim results for the six-month period ending December 31 2018 Vocus's CEO flagged a three-year turnaround plan that included a target to double revenue from its enterprise and government dark fibre internet services.
It also reiterated guidance for underlying EBITDA to come in between $350 million to $370 million over fiscal 2019 with capital expenditure expected to be in the region of $160 million to $170 million.
However, this guidance is based on the second half being stronger than the first half in part due to additional revenue from its newly-completed Australia Singapore Cable project.
The one major problem is Vocus's net debt load stood at $1,089 million as at December 31 2018 on a net debt to EBITDA ratio of 3.8x. Therefore its share price may remain volatile over the medium term.
