MyNetFone takes "cautious" approach to the NBN

MyNetFone takes "cautious" approach to the NBN

Despite subscribers to the NBN growing 137 per cent during the year

Rene Sugo - MyNetFone co-founder and CEO.

Rene Sugo - MyNetFone co-founder and CEO.

Credit: MNF Group

MyNetFone Group (ASX:MNF) has posted $191.8 million revenue for the full year ending 30 June 2017, representing 19 per cent growth compared to the previous year.

The publicly-listed hosted voice and data communications services provider told shareholders it has been focusing on products with recurring revenue rather than lower margin usage-based products.

In the annual results presentation to shareholders, the company revealed an eight per cent increase in residential data services benefiting from increasing conversion from the National Broadband Network (NBN). 

Subscribers to NBN grew 137 per cent, but the company is taking a “cautious” approach to NBN, waiting of its impact to play out in the market.

At the same time, the company’s earnings before interest expense, tax, depreciation and amortisation (EBITDA) went up 34 per cent to $23.9 million. The final net profit after tax (NPAT) was $12.1 million, also representing a 34 per cent growth, which is ahead of the company’s NPAT forecast of $11.6 million.

“Our performance this year is largely a result of organic growth within all three segments of the business – Domestic Retail, Domestic Wholesale and Global Wholesale,” MNF Group chief executive, Rene Sugo, said.

“The business, as a whole, has been focussed on growing our more valuable high margin products with recurring revenue, and moving away from some of the lower margin usage based products. The company expects this transformational trend to continue well into the future as consumers and businesses quickly act to embrace our new MNF powered applications, driven by roll out of the NBN,” Sugo added.

MNF’s Domestic Retail segment demonstrated strong underlying organic growth complemented with the CCI acquisition earlier in the year, according to the CEO.

MNF also saw an increase in government and enterprise with new wins in the Victoria Government Telecommunications Purchasing and Management Strategy (TPAMS).

“The Domestic Wholesale segment continues its ongoing strong growth with its gross profit contribution up a very solid 24 per cent on last year. We are also very pleased with the Global Wholesale segment which achieved solid growth of 15 per cent driven from the uptake of new generation services,” Sugo said.

“The CCI acquisition integration is going to plan with the network integration largely completed, ensuring a full year of synergies in FY18,” added Sugo.

Australian telecommunications provider MNF Group was founded in 2004 and listed with the ASX in 2006. MNF Group, previously known as MyNetFone, owns Symbio Networks, Connexus, CallStream, PennyTel, MyNetFone, The Buzz, TNZI and iBoss.

The group operates globally with points of presence in Los Angeles, New York, Hong Kong, Singapore, London, Frankfurt, Sydney and Auckland.

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Tags TelcoTelecommunicationsfinancial resultsmynetfonemnf groupMFM

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