MNF expects profit to grow up to 39 per cent by 2020
- 10 October, 2018 10:36
Australian telecommunications provider MNF Group has predicted up to 38.6 per cent jump in its profits by 2020 following the news of its planned acquisition of Inabox.
Earlier this week, the publicly-listed company announced plans to acquire Inabox's wholesale telecommunications and enablement business for up to $33.5 million.
Updating shareholders today, MNF Group said it expects its net profit-after-tax (NPAT) to rise from $11.9 million in 2018 to $12.8 million next financial year, reaching up to $16.5 million by 2020.
The rise would provide MNF Group, which owns MyNetFone, PennyTel and Symbio Networks among other brands, with a bounce-back after seeing its NPAT profits dip by 1.7 per cent in the last financial year.
MNF’s share price has risen from $4.8 on Friday 5 October to $5.17 on 9 October.
The acquisition, which is subject to shareholder approval, will see MNF Group acquire all the operating entities for Inabox which includes Telcoinabox, iVox, Neural Networks, Mobile Service Solutions and Symmetry Networks.
All employees, aside from Inabox's CEO, Damian Kay, and CFO, Deborah Zimmer, are included in the purchase.
Inabox, which is also publicly listed, closed the 2018 financial year with a net loss of $13 million, which the company attributed to its direct business.
A few weeks before announcing its financial results, Inabox sold its direct business, which consisted of consisted of Hostworks and Anittel, to 5G Networks for $5.7 million.
Meanwhile, despite its NPAT fall in 2018, MNF Group closed the financial year with a 15 per cent increase in revenue, posting $220.7 million in total, while its EBITDA profit increased by three per cent to $24.6 million