ASX-listed IT and communications services provider, Inabox Group (ASX:IAB) has pegged its focus on a more profitable business in FY16 as it puts its numbers on the table for the first half of 2015 financial year.
For the six months leading to December 31, Inabox Group saw figures drop across the financial table.
Revenue was down to $23.31 million ($24.15 million in 1H14); EBITDA was also down to $1.09 million ($1.13 million in 1H14) and net profit after tax was down to $370,000 ($470,000 in 1H14).
The Telcoinabox Group’s revenues were negatively impacted by the loss of a substantial wholesale customer, which was acquired by a reseller.
The first half saw Inabox make two acquisitions of Neural Networks and Anittel.
Inabox Group managing director, Damian Kay, said the first half of FY15 was transformative period for the company with the two acquisitions transitioning its business from being a wholesaler of legacy telecommunications services into an IT, Cloud and communications provider.
Inabox counts 410 active resellers, more than 1000 direct SME, corporate and government customers and maintains more than 200 staff in 14 offices.
“This creates enormous cross selling and up-selling opportunities and gives us scope for significant cost savings as we maximise efficiencies,” Kay said.
“While the acquisitions have resulted in some non-recurring transaction costs, which impacted earnings in the first half, we will be a much stronger, more profitable business in FY16.”Read more: BigAir touts more acquisitions on the cards
“Integrating Anittel and structuring our business to eliminate duplication and improve efficiency is our top priority throughout 2H15 and FY16. We are encouraged by the progress made to date and I am delighted to report that Anittel has just won a $1 million plus sale from a lead generated by our Telcoinabox channel.”
The company highlighted its key objectives for the rest of the 2015 financial year and leading into FY16 including integrating Anittel and maximising cost savings as well as cross selling opportunities; growing it hosted voice and collaboration services on Anittel’s Cisco HCS platform in the Tasmanian market and expanding that into rest of the country; building the enablement and wholesale businesses; increasing sales of high margin next generation voice and data services and extending contracts of its remaining top 20 wholesale resellers.
However, Inabox will reduce its remaining mobile-centric business where recent changes in supplier terms made the risk/reward profile of supporting mobile-centric resellers unattractive.
Transitioning from a legacy telecommunications service provider into IT, cloud and communications services ASX-listed Inabox Group (ASX:IAB) has signalled EBITDARead more: DWS revenue and profit tumble in first half