More acquisitions on the horizon for MyNetFone

More acquisitions on the horizon for MyNetFone

Fresh from striking a deal to buy Conference Call International, MyNetFone is already flagging more acquisitions on the horizon

Just weeks after striking a deal to buy conferencing and collaboration provider, Conference Call International (CCI), Australian telecommunications player, MyNetFone (ASX:MNF) has flagged plans for more acquisitions.

“With a discerning and conservative approach, the board of MNF Group will continue to actively search for further acquisition opportunities; whilst we remain totally committed to driving growth and performance within the business,” the company told shareholders in a statement on 14 February.

“The criteria being sought after are: customer bases which can be migrated to the company’s network, giving a high return on investment, or intellectual property and network assets, which can be integrated into the company’s existing ecosystem to provide additional growth opportunities, or additional capabilities, which complement the company’s stated strategies,” it said.

The comments come as the company reveals its half-yearly financials for the six months ending December 2016, reporting a 22 per cent surge in pre-tax earnings (EBITDA) compared to the same period the year prior, to $10 million.

Rene Sugo - MyNetFone co-founder and CEO.Credit: MNF Group
Rene Sugo - MyNetFone co-founder and CEO.

At the same time, the company revealed a 21 per cent increase in net profit after tax (NPAT) for the period, compared to the previous year, to $4.9 million. Meanwhile, revenue for the half year increased by nine per cent, to $91.4 million.

According to MyNetFone, much of the growth in its financial figures has been driven organically in all three of its operating segments: domestic retail; domestic wholesale; and global wholesale.

The results follow the announcement on 1 February of the company’s acquisition of Australian conferencing and collaboration player, CCI, for $18 million in a deal set to see the company gain a portfolio of 5000 enterprise customers across A/NZ and Asia-Pacific.

The agreement will also see the company net three brands currently operating in the space, including Express Virtual Meetings, Ozlink, and Eureka Conferencing.

“The acquisition of CCI provides MNF a significant entry into the audio conferencing and collaboration market in Australia and the region. These applications generate high margin recurring revenues with potential for consistent, long-term growth and innovation potential,” MyNetFone CEO, Rene Sugo, said at the time.

The combined business is expected to produce an upgraded 2017 forecast, with EBITDA forecast to reach $23.7 million and NPAT set to reach $11.6 million.

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Tags TelecommunicationsConference Call InternationalMyNetFine

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