Amcom posts strong profit during period of Cloud investment

Amcom posts strong profit during period of Cloud investment

Telco invests in the convergence of the telecommunications and IT sectors

Telecommunications and IT service provider, Amcom, has posted a half-year profit of $11.5 million during a period marked by the deployment of its Cloud Collaboration platform.

The strong profit result was a 14 per cent increase compared to the previous period, while earnings per share increase by 14 per cent.

According to a company statement, Amcom’s earnings growth continued to be organically driven from the company’s operations which have expanded substantially in size and scope.

Revenue increased four per cent to $82.9 million, with the core data networks again performing strongly.

Amcon also increased its annual recurring revenue base from annuity style business streams to $116 million, up from $98 million in the previous period.

Amcom chief executive, Clive Stein, said the recurring revenue base had increased 18 per cent in the period.

“The demand for our core data and hosted products continues strongly and is a lead indicator to the growth of the business," he said.

In the past six months the company has deployed the Amcom Cloud Collaboration Platform (Cisco hosted IP telephony), acquired Acure Technology and expanded its datacentre footprint.

Net debt increased to $34.1 million, largely as a result of the datacentre acquisitions.

Stein said the company had invested in opportunities arising from the convergence of the telecommunications and IT sectors.

“We have successfully balanced performance and growth – continued execution will drive shareholder returns in the future.”

The board has declared a fully franked interim dividend of $0.022 cents per share, payable on April 4.

According to a company statement, the core data networks business is expected to remain strong and will be complemented by an increasing contribution from newer offerings such as Cloud services.

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Tags ciscoaCure TechnologyClive SteinCisco hosted IP telephonyAmcom chief executive


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