Amcom Telecommunications earns record profit from recurring revenue

Amcom Telecommunications earns record profit from recurring revenue

Reaches $22.4m profit on the back of a 16 per cent recurring revenue boost

Amcom Telecommunications’ net profit after tax (NPAT) and expenses amounted to $22.4 million in fiscal 2014, marking an eight per cent increase over the previous financial year’s outcome of $20.7m.

But despite the record year, the telecommunications and IT services provider said its key performance metric is recurring revenue, a value which increased by 16 per cent as a result of demand for annuity services.

Total revenue for the 12 months to June 30 was $170.4m, an eight per cent bump from 2013’s $157.7m, while earnings before interest, tax, depreciation, and amortisation (EBITDA) were $46.7m, up 17 per cent.

Amcom chairman, Tony Grist, said the company’s performance is reflected in its operating cash flow growth, which hiked 24 per cent to $41.2m.

Among Amcom’s investments through fiscal 2014 is $2.5m on bringing Amcom Cloud Collaboration (ACC) to market. ACC is a unified communications-as-a-service (UCaaS) suite based on the Cisco Unified Communications platform which promises communications with enterprise-grade, Cloud-based security.

“We have continued to innovate and invest in our business as demonstrated with the deployment of ACC, leading to our ground breaking partnership with AARNet and our major contract win with the University of Melbourne,” Amcom CEO, Clive Stein, said.

“According to Frost and Sullivan, the addressable enterprise market for platforms such as ACC is over $1.3 billion nationally.”

The Amcom board has declared a fully-franked final dividend of $0.04 per share, a 14 per cent increase from fiscal 2013. The total dividend for fiscal 2014 is at $0.062 per share.

Amcom expects a similar growth in underlying NPAT in 2015 as it achieved in the fiscal year passed.

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Tags UCunified communicationsTelcociscoTelecommunicationsASXfinancialsACCEBITDAAmcom TelecommunicationsNPATUCaaSAmcom Cloud Collaborationnet profit after taxunified communications-as-a-service

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