Inabox Group (ASX:IAB) is set to pull in an additional $4 million in annualised revenue thanks to a series of new reseller deals won by its subsidiary, Telcoinabox.
The IT, cloud, and IP telephony services provider, which is publicly-listed on the Australian Securities Exchange (ASX), told shareholders on 4 September that its wholesale-only telecommunications aggregator business had inked the three new reseller agreements with “established retail service providers”.
The new contracts are expected to largely plug the revenue hole left by the loss of a major customer and the strategic divestment of two unprofitable customers, the company said.
In August, posted net profit after tax (NPAT) of $100,000 due to $1 million costs related to the acquisition of Hostworks and Logic Communications and the sale of HCS and previous year tax adjustments.
At the same time, the company reported a sluggish two per cent rise in revenue, to $90.1 million. The company attributed the slow increase in the revenue to the major customer loss and the offloading of the two unprofitable customers.
According to Inabox Group, the migrations arising from the new telco deals have already begun and are expected to be completed within the first half of FY18.
This follows on from a record number of RSPs signed in the second half f FY17, which included 27 new resellers in the space of five months.
Looking forward, the company said that it is already in the midst of discussions with “a number of established RSPs [retail service providers] to migrate their services to Telcoinabox from their existing providers.
“It is really pleasing that we have been able to capitalise on the strong momentum we started with in FY18,” Inabox Group CEO, Damian Kay, said.
“The fact that these well-established RSPs have chosen to migrate to us from their existing providers is a strong testament to our offering and commercially validates the strategic investment in our software platforms and new and innovative products.”
Telcoinabox's offerings include Telstra Wholesale 4G mobile services, a turnkey white-labelled NBN service, Office 365FL, access to multiple carriers and a range of back-office support.