MNF profit halves post-Inabox acquisition
- 26 February, 2019 13:30
Communications software provider MNF Group has seen its net profit after tax (NPAT) fall by nearly 50 per cent to $3.1 million for the half year ending 31 December.
MNF, which owns MyNetFone, PennyTel and Symbio Networks among other brands, partly attributed the profit fall to the $800,000 costs of associated with its $34.5 million acquisition of Inabox completed last December and the acquisition of SuperInternet Group Singapore.
According to MNF, the Inabox integration and consolidation is going well with staff integration and network integration well underway.
MNF also told shareholders that "the business is performing to plan" and the milestones required to achieve the original earn-out conditions have all been met.
In addition, the publicly-listed company pointed to a decrease in previously stated global wholesale margins of $4 million due to "contracts unwinds" in usage based volumes.
MNF's expansion into Asia Pacific, via Singapore, also led to increased staff wage expenditure, plus additional operating expenses in Singapore ahead of the company's launch of a new wholesale product.
The global wholesale business decline also hit MNF’s revenue, which fell by 16 per cent to $98.1 million from the previous corresponding period. Earnings before interest, tax, depreciation and amortisation (EBITDA) was $9.8 million.
However, in an update to shareholders, the company said it remained confident of achieving a full year NPAT of between $11 million and $12 million.
Bright spots included a 16 per cent growth in the number of wholesale customers - a number of whom came from Inabox - and a 10 per cent rise in PBX clients.
MNF also claimed a 24 per cent rise in margins for its enterprise and government business.