WebCentral acquisition pays off

WebCentral acquisition pays off

WebCentral Group's full-year revenue has leapt 338 per cent to $58.4 million following growth across both its digital recording and managed hosting services businesses.

The company reported net profits of $5 million for the 2004/2005 financial year, up 219 per cent on previous results.

WebCentral Group, formerly FTR Holdings, was renamed after its acquisition of WebCentral in July last year. The company now maintains two divisions: one for its digital recording solutions; the other focusing on Web and application hosting.

Group CEO, Andrew Spicer, said the acquisition was key in its positive results. The WebCentral division made $43.1 million over the past year, up 17 per cent.

One of the contributing factors was strong growth experienced via wholesale partners. More resellers were taking on some of its value products, such as managed exchange and server hosting, he said.

"These guys just sold share hosting initially," he said. "Our main focus is to move them up the value chain."

Sales of managed services, particularly into the corporate and government sectors, had also been a growth driver, Spicer said. This area of the business grew revenues to $10.6 million, up from $3.5 million the year before.

However, the FTR business had also chalked up strong sales, increasing by 39 per cent to $15.3 million. This had been prompted by a new contract with the US Social Security Administration.

Spicer said WebCentral would continue to focus on securing more corporate and government work in managed application services. It would also target upcoming hosted services at the SMB space.

"The ASP model didn't work in the 90s but with more bandwidth available today it's really taking hold," he said. "We're looking to grow all of our business lines. We're at the level where we have size, scale and visibility."

The group was also keep its eyes open for further acquisitions, Spicer said.

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