Telecommunications aggregator, Inabox Group (ASX:IAB), has posted an $859,000 profit for FY16, an increase of 344 per cent from the previous financial year.
The company said the completion of the integration of Anittel into the business has become profitable and this combined with the sale of the HSC business to Telstra in June 2016 are the primary reasons for the increased profit.
The company’s revenues rose 36 per cent to $88 million. this included a doubling of the take from the company’s enablement business, which hit $5.7 million.
Direct revenues grew to $33.5 million, up 94 per cent from the previous year’s result of $17.3 million.
Indirect revenues were $48.8 million, up eight per cent on FY15 figures, which Inabox attributed to restricted growth from smaller retail partners.
The services business grew 185 per cent to hit revenues of $5.7 million and the company said this was due to an increase in services in operation from 32,000 to more than 85,000 and a “significant increase” in development revenue.
Total earnings before profit, interest, taxation, deductions and amortisation (EBITDA) hit $5.5 million, exceeding guidance from the company and was more than double EBITDA in FY15, which was $1.8 million.
Inabox made $4.5 million from the sale of HCS to Telstra on June 30, but the money will not be received until 2017 once the integration is complete.
“It has been a year of rapid change for Inabox,” the company said in a statement. “The results were driven by the bedding down of prior year’s acquisitions, investment in new products and system capabilities and a significant increase in the investment requirements for the HCS business.”
The company awarded a dividend to shareholders of $0.17 per share on the back of the results.
Inabox’s share price was $1.02 at the time of writing.