Over the Wire half year profit soars following dual acquisition

Over the Wire half year profit soars following dual acquisition

Revenue and NPAT up by more than 40 per cent

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Over the Wire has seen its net profit after tax (NPAT) rise by 45 per cent to $3.2 million for the half year ended 31 December 2018.

The telecommunications services provider said recent acquisitions of Access Digital Networks and Comlinx for nearly $30 million contributed to its profitability alongside an increase in revenue. 

In the first half of the 2019 financial year, revenue rose by 43 per cent to $34.3 million, compared to the previous corresponding period. 

The publicly-listed company also saw organic revenue growth from its services in data networks, voice, data centre colocation and cloud services, with the latter growing by 111 per cent.

 According to the half year report, Over the Wire invested $1.3 million on its cloud platform expansion.

“Our growth objectives are complemented by our recent acquisitions, Access Digital Networks and Comlinx, and we remain focused on delivering exceptional service to our customers and quality returns for our shareholders,” Over the Wire managing director Michael Omeros said.

Going forward into 2019, the company said it intended to boost its presence in New South Wales and Victoria, while utilising Access Digital Network’s presence in South Australia.

In addition, the company pointed towards a target of 20 per cent organic growth, potential further acquisitions, plus expansion on offerings in SD-WAN, cyber security and mobility.

Moves into SD-WAN will be aided by the acquisition of Comlinx, the company stated, alongside further cross-selling opportunities.

Announced in October, the acquisitions saw Over the Wire pay $10.44 million in cash plus $2.61 million in shares for Adelaide-based Access Digital Networks, plus $12.8 million in cash and $3.2 million in shares for Comlinx.

Together the the dual acquisitions have added more than 350 new customers to Over the Wire’s existing base and a collective $3.4 million to overall half year revenue. 

Over the Wire said it expects the two acquisitions to contribute ‘significantly’ in the second half of 2019.

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Tags comlinxOver the WireAccess Digital NetworksMichae Omeros


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