IFT - Infratil

[kiora]

The Vodafone investment now looks out of place. A retail business with a few sh*tty cell towers splatter about. Will they look to offload this and invest more into healthcare and datacenters?

One might have also said the same with Shell NZ ?

[mfd]

The Vodafone investment now looks out of place. A retail business with a few sh*tty cell towers splatter about. Will they look to offload this and invest more into healthcare and datacenters?

They aim to have a core of cash generating businesses (Transpower, Vodafone) and development businesses which are the destination for most of that cash. Vodafone fits the core criteria just fine, which isn't to say they'd never spin it off and replace it with some other cash generating business - or maybe they can grow some of the development businesses into cash cows.

[Swala]

They aim to have a core of cash generating businesses (Transpower, Vodafone) and development businesses which are the destination for most of that cash. Vodafone fits the core criteria just fine, which isn't to say they'd never spin it off and replace it with some other cash generating business - or maybe they can grow some of the development businesses into cash cows.

Yes, it's a little like the Berkshire Hathaway Model whereby their insurance businesses generate the cash which is then used for aquisitions (be that whole companies or shares in them).

[LaserEyeKiwi]

The Vodafone investment now looks out of place. A retail business with a few sh*tty cell towers splatter about. Will they look to offload this and invest more into healthcare and datacenters?

eh???

vodafoneNZ generates more than half of Infratils EBITDA - it is a glorious cash cow enjoying a boost from things like the new high margin fixed wireless broadband offerings (which eliminate the middlemen infrastructure companies like chorus and mean Vodafone keep 100% of revenue to themselves)

[peat]

Just thought I'd share from BusinessDesk

However, Kao Data is at an earlier stage compared to where Canberra-based CDC Data Centres was when Infratil bought its 48% stake in 2016. As a result, it is riskier. Boyes said CDC is now Infratil's largest single investment and "the trends that have made that investment successful are continuing, if not accelerating".
Infratil paid A$392m (NZ$410.4m) for its CDC stake and it was valued at between A$2.04 billion and A$2.3b at Dec 31 last year.

400 --> 2000 in 5 years.

I must admit I thought they were a little late on the datacentre bandwagon - the IT firm I worked for built a huge one before 2010 and had plans to rinse and repeat - but clearly not with those sort of gains.

[RTM]

Just thought I'd share from BusinessDesk

However, Kao Data is at an earlier stage compared to where Canberra-based CDC Data Centres was when Infratil bought its 48% stake in 2016. As a result, it is riskier. Boyes said CDC is now Infratil's largest single investment and "the trends that have made that investment successful are continuing, if not accelerating".
Infratil paid A$392m (NZ$410.4m) for its CDC stake and it was valued at between A$2.04 billion and A$2.3b at Dec 31 last year.

400 --> 2000 in 5 years.

I must admit I thought they were a little late on the datacentre bandwagon - the IT firm I worked for built a huge one before 2010 and had plans to rinse and repeat - but clearly not with those sort of gains.

Thanks Peat. I wonder how much capex has gone in there in those 5 years ? Any idea ?
Disc: Holder

[maclir]

Thanks Peat. I wonder how much capex has gone in there in those 5 years ? Any idea ?
Disc: Holder

You have to pick through the IFT annual reports. For example, the latest report notes for CDC "A$738.2 million of capex invested overFY2019 and FY2020." p59 of the report https://infratil.com/assets/Uploads/...2021-FINAL.pdf

[peat]

Thanks Peat. I wonder how much capex has gone in there in those 5 years ? Any idea ?
Disc: Holder

2017 0
2018 22
2019 140
2020 226 (48% of the overall capital investment)
2021 115 (based on same 48% because they seem to use the whole figure for the CDC )

It starts to look like the investment (like most these days) only really pays off because of the capital gains? So they will dump at some point.
Its their modus operandi .

[peat]

You have to pick through the IFT annual reports. For example, the latest report notes for CDC "A$738.2 million of capex invested overFY2019 and FY2020." p59 of the report https://infratil.com/assets/Uploads/...2021-FINAL.pdf

its well stated in those reports
tho sometimes it would seem they use the figure of 100% of the capex ie including the other owners as IFT only own 48 %

[RTM]

2017 0
2018 22
2019 140
2020 226 (48% of the overall capital investment)
2021 115 (based on same 48% because they seem to use the whole figure for the CDC )

It starts to look like the investment (like most these days) only really pays off because of the capital gains? So they will dump at some point.
Its their modus operandi .

Thanks. So total 503mil.
Still a lot left over.
Great.