Why the Service Stream (ASX:SSM) share price is jumping 7% higher

The Service Stream Limited (ASX:SSM) share price is shooting higher today after announcing a major agreement with Telstra Corporation Ltd (ASX:TLS)…
The post Why the Service Stream (ASX:SSM) share price is jumping 7% higher appeared first on The Motley Fool Australia. –

City skyline with building connected by graphic lines and the word 5G

The Service Stream Limited (ASX: SSM) share price is pushing higher on Friday after the release of an announcement.

At the time of writing, the essential network services provider’s shares are up 7% to $1.86.

What did Service Stream announce?

This morning Service Stream announced that it has secured a multi-year agreement with telco giant Telstra Corporation Ltd (ASX: TLS)

According to the release, under Telstra’s new commercial framework, Service Stream will be a key delivery partner responsible for performing design, construction, and maintenance activities associated with its wireless and fixed-line infrastructure networks.

This includes site acquisition, design, construction and upgrade services of wireless infrastructure and design, construction, and relocation of fixed-line network infrastructure.

The release explains that the two parties have signed a five-year agreement, which comprises an initial period of three years and two one-year extension options. Those options are at Telstra’s discretion. The agreement is expected to transition in or around April 2021.

What is the contract worth to Service Stream?

Management advised that the agreement does not provide guaranteed volumes.

However, it notes that the company has historically delivered approximately $70 million of wireless and $30 million in fixed-line infrastructure works per annum to Telstra under similar agreements. And this was with a larger pool of delivery partners historically operating across allocated regions.

Service Stream’s Managing Director, Leigh Mackender, commented: “Service Stream is very pleased to be selected as one of Telstra’s strategic delivery partners under their new Field Optimisation Agreement, continuing to support our long-term relationship which has existed for more than 15 years.”

“The business looks forward to partnering with Telstra and supporting both their wireless and fixed-line network programs, particularly at a time where demand for 5G wireless infrastructure is expected to increase,” he concluded.

Where to invest $1,000 right now

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

See The 5 Stocks

*Returns as of June 30th

More reading

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Telstra Limited. The Motley Fool Australia has recommended Service Stream Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post Why the Service Stream (ASX:SSM) share price is jumping 7% higher appeared first on The Motley Fool Australia.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!