So far, trading on the ASX today has seen the S&P/ASX 200 Index (INDEXASX: XJO) fall by 0.6%. The following two ASX 200 shares are down more than most, with both companies trading over 3% lower.
Vocus Group Ltd (ASX: VOC)
The Vocus share price is down 3.72% at the time of writing. However, the fall doesn’t appear to be linked to any recent announcement.
The last 12 months have been disappointing for the fixed-line telco provider, with shares down by around 2%. Although the Vocus share price rallied to $4.68 in late May last year, it’s since fallen to $3.36.
The last few years have been very challenging for Vocus due to the tight margins offered to retail fixed broadband operators under Australia’s National Broadband Network (NBN).
The company’s share price rose strongly through the last decade up to early 2016, then dropped sharply over the following 12 months into 2017. Since then, it’s never really recovered.
Vocus has been consolidating its business to three independent operations: Network Services, Retail, and New Zealand. The company also plans to provide stimulus to its retail segment and develop a 5-year pipeline of strategic builds for its national fibre network.
Vocus recently met its FY19 guidance, although the company anticipates mostly flat growth in FY2020 with a stronger second half. Vocus has also forecasted earnings before interest, tax, depreciation, and amortisation (EBITDA) growth in Vocus Network Services of $20 million to $30 million, which will be offset by a similar decline in its retail segment.
The company anticipates sustainable profitable growth in 2020 and beyond for its core business of Network Services. Additionally, Vocus is predicting cost-saving opportunities will return to the Retail segment and that the New Zealand business is positioned for further growth.
Mayne Pharma Group Ltd (ASX: MYX)
The Mayne Pharma share price has dropped 4.54% so far today, continuing its downward 12-month trend. Mayne is a pharmaceutical company with a portfolio of branded and generic drugs across therapeutic areas including women’s health, oncology, dermatology, and cardiology.
Last November, management warned that continued pressure on generic drug pricing was weighing on its performance. As a result, Mayne’s revenue for the first four months in FY20 is down 16% from last year to $153 million.
The US generic drug market continues to be a challenging environment with many closing manufacturing plants, restructured operations, and withdrawn unprofitable product lines.
Mayne’s strategy focuses on reshaping the business towards branded therapeutic segments to develop better sustainable revenue and profit streams. The company aims to broaden its specialty portfolio through focused research and development as well as business development.
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