Telecommunications provider Spirit Telecom has revealed it will focus on acquisitions in the second half of the 2019 financial year.
Specifically, Spirit said it currently has a shortlist of three companies with complimentary wireless network assets that are currently moving through the due diligence process, it told shareholders on 28 February.
Public-listed on the Australian Securities Exchange (ASX), Spirit Telecom's half year results saw its revenue increase 1.3 per cent to $8.2 million while earnings before interest, tax, depreciation and amortisation (EBITDA) dropped 78.9 per cent to $259,190.
The slow growth in revenue was attributed to a delay in the rollout of Spirit’s expanded network, completed in November. It has also been impacted by the decline in non-core/legacy type services, such as ADSL, phone lines and other copper-based services. These factors will continue to abate over the coming periods, the company stated.
Underlying earnings also decreased by 77.4 per cent, from $1.6 million in December 2017 to $362,363 for the half year ended December 2018.
As a result, Spirit closed the first half with a loss $562,010, or 336.1 per cent drop from the previous corresponding year $238,077.
During the first half, Spirit completed its 10Gb network upgrade in Melbourne, was awarded a $1.7 million contract with Victoria Government to deliver high-speed broadband to the Victorian city of Horsham as an alternative to the National Broadband Network (NBN).
The upgrade is part of Spirit's $1.2 million network expansion which will significantly expand the network reach and also provide customers with internet services 10 times faster than what they are used to.
The increases in bandwidth capacity, Spirit said, are thanks to its ongoing expansion plans and the purchase of radio equipment and professional services from NEC Australia which will initially see a 10Gbps full duplex throughput deployed across the Spirit’s network.
As reported in November, Spirit acquired 10Gbps E-band radio equipment and professional services from NEC Australia in order to upgrade its 10Gb network. As a result, NEC will supply 70 iPASOLINK EX-A terminals with 10Gbps full duplex throughput over the Spirit network, as part of their existing contract.