Spirit Telecom acquisitions drive growth

Spirit Telecom acquisitions drive growth

Revenue goes up 54 per cent

Telecommunications provider, Spirit Telecom (ASX:ST1), posted $8.1 million in revenue for the first half of the 2018 financial year, a 54 per cent increase from the previous corresponding period.

Underlying earnings before interest, tax, depreciation and amortisation (EBITDA) grew by 117 per cent to $1.5 million.

Underlying net profit after tax (NPAT) – excluding items associated with acquisition activity – was up 160 per cent to $457,282 and statutory NPAT $238,077, up by 304 per cent.

Spirit told shareholders on 21 February that the growth was driven by continued strong organic growth in high margin, On-Net Building revenues, as well as contributions from acquisitions made during the period.

“The  first  half  has  seen  the  development  of  the  executive  team,  as  well  as  a growth  in  sales  and  marketing  personnel,” Spirit managing director, Geoff Neate, said. “This,  coupled  with  a  strengthened  board  and  the excitement  of  the  World  Without  Wires  acquisition  has  provided  Spirit  with  a  strong  foothold  on future development and growth.

“In  addition, the Wires acquisition has delivered a skill set that complements and enhances Spirit’s technical  capabilities,  the  result  of  which  should  see  more  product development  and  channels  to market being exploited in the coming months, and we look forward to updating the market with new developments as they come to hand,” he said

Spirit listed with the ASX in June 2016 following a successful capital raise.

The company has previously acquired business telecommunications and phone systems provider Voxcom in 2012, My Telecom in 2015 and Phone Name Marketing in 2016.

The telco closed the 2017 financial year with a 30 per cent year-on-year rise in revenue, to $11.5 million and statutory net profit after tax (NPAT) came in at $468,392.

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