Clever suffers net loss

Clever suffers net loss

Network carrier pins losses down to prior acquisitions and management restructuring process

ASX-listed network operator, Clever Communications (ASX:CVA), has reported a net loss of $3.4 million in the 12 months to June 30.

Managing director, Scott Carter, said the loss was predominantly due to non-recurring items including good will, which related to prior acquisitions and an overhaul of its board and management restructure in August last year.

“The underlying performance of the business is quite strong,” he said. “In the second half of the financial year, there has been some significant turnaround.

“Looking at the health of the business, outside the non-recurring one-off items, we’ve got the business heading in the right direction.”

The network operator recorded full-year pre-tax earnings of $1.06 million, which is more than double FY07. Overall revenue over the same period reached $17.3 million.

Carter said the majority of Clever’s growth came from its national fixed wireless broadband network, which experienced a 180 per cent increase in services revenue in the second half of the year.

“Revenues [across the wireless broadband network] have also increased by 106 per cent [in the second half]. We own and operate that network and the costs are largely fixed. It translates to improved gross margins, which the second half from the first half of the year had gone up from 38 to 44 per cent,” he said.

Clever also doubled the number of its channel partners to 100 during the financial year and introduced a partner program called Clever Certified, which consists of gold, silver and certified levels. It will offer partners sales and marketing training across Clever’s product set.

“We’ll be able to do some specific campaigns with our partners,” Carter said. “For example we can help them target geographic locations that are poorly served by other broadband technologies and get them to work on localised campaigns in those areas.”

Clever will also help generate leads for partners and volume-based discounts are also up for grabs.

Cater said in the last nine months the network operator had invested in automated service delivery, which includes online pricing and ordering tools for its partners.

“We deal with a variety of different partners from carriers to ISPs and VARs,” he said.

Earlier this month, Clever acquired data and Internet provider NPH.

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