Wholesale telecommunications provider, Inabox, has reported a consolidated net profit after tax (NPAT) of $471,344 for the first half of fiscal 2014, down 23.3 per cent.
The result is attributed to its investment in IT systems and networks to enable mass market customers, particularly those in retail, energy and financial services, to offer telecommunications products. Longer establishment timelines for new mass market customers was also listed as a factor.
Inabox expects to see earnings and profit growth from these customers as they transition to product launch and recurring revenue begins.
Additionally, the company was impacted by its move to go from private unlisted compoany to a public listed one which resulted in regulatory and corporate government costs.
Despite a profit drop, Inabox claims these same factors allowed it to realise underlying revenue growth of 16.2 per cent to $24.1 million.
Inabox broadened its portfolio with the acquisition of voice over IP (VoIP) provider, iVox, on January 12, 2013, which contributed a pre-tax profit for the period of $303,097.
The company said it intends to pursue further acquisition opportunities with a focus on nabbing smaller aggregators which have a Cloud-based play.
Inabox directors did not issue a mid-year dividend.Read more: MyNetFone channel partner programme revamped