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Hostworks chalks up record revenue

Hostworks chalks up record revenue

Services provider attributes success to continued growth in online media and business application management services

ASX-listed Hostworks (ASX: HWG) chalked up record revenue of more than $13 million in its half-yearly results to December 31.

The managed services provider's sales revenue jumped by 24 per cent to a record $13.2 million. Net profits increased by 112 per cent to $1.4 million.

Managing director, Marty Gauvin, said growth was driven by two factors: continued take-up of online media and the Internet, and wider business acceptance of application management services.

"We are seeing more and more businesses recognise they need to go to a specialist provider for the services that we offer in order to get the results they need," he said.

Throughout the year, Hostworks had renewed contracts with significant customers such as ninemsn . The company has about 70 customers on its books.

"We are certainly well on track to meet our full-year results. We expect it to be a good one that reflects continued growth," Gauvin said.

The services provider's shareholders also recently approved Broadcast Australia's acquisition of Hostworks. The deal is still subject to court approval and is worth about $68.9 million.

Gauvin said the acquisition would allow Hostworks to expand further into the broadcast television and radio industry. He also hinted he would like to take Hostworks international.

In other news, Hostworks has won contracts with Carsales and travel.com.au to manage all of their online requirements and critical applications.

"We are focused on providing very high level, comprehensive services to a small number of customers and that remains our focal point," Gauvin said.


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