5G Networks has seen its earnings before tax (EBITDA) rise by over 200 per cent on the previous corresponding period for the first half of the financial year ending 31 December 2019, due in part to its actions in the channel.
The publicly listed company claimed it was continuing its strategic growth plan, following the launch of the 5GN Indirect Channel and signing up several partners, one of which being Servers Australia.
The company’s normalised EBITDA growth (before acquisition and non-recurring costs of $191,000 and share option costs of $335,000) of 236 per cent to $3 million was attributed to the transition to higher margin annuity revenue streams and operating cash flows.
Revenue was up 8 per cent to $25.4 million from the previous corresponding period while net loss declined by 67 per cent down to $475,000, down by nearly $1 million from the previous corresponding period.
5G also placed further investment in cloud infrastructure by over 25 per cent, along with a continued fibre roll out in the Sydney and Melbourne CBDs, its next generation cloud suites staying on schedule for its planned Q3FY20 launch and two Sydney data centre acquisitions.
Joe Demase, managing director of 5G Networks, said the business’ performance was improving each period due to “building an organisational culture based upon the 5GN core values.”
“The business is leveraging this open and collaborative environment to ensure we continue to create value for our customers and our shareholders," Demase said.
“The successful launch of the 5GN Indirect Channel and several strategic data centre acquisitions, coupled with continued fibre roll out and next generation cloud suite positions the company well for continued growth.”
“Our strategic growth plan has been further strengthened by continued investment in Sydney's digital infrastructure market and this region is presenting significant opportunity and upside for 2020 and beyond.”