H1 EBITDA Up 52%
Sydney, Feb 25, 2020 AEST (ABN Newswire) - The Board of Australian communications software specialist MNF Group (
ASX:MNF) (M2S:FRA) is pleased to report solid results for the six months ended 31 December 2019. Earnings before interest, tax, depreciation and amortization (EBITDA) was up 52% to $16.9m (with FY19 restated for AASB16). Net profit after tax (NPAT) was up 20% to $3.7m. The Company ended the period with cash of $38.6m, and undrawn debt facilities of $30.0m available to fund further growth of the business.
The Company is reaffirming EBITDA guidance in the range of $36.0m to $39.0m (on a post AASB16 basis) and guiding NPAT in the range $10.0m to $12.0m. The updated NPAT guidance reflects impacts due to changes in R&D tax concessions, increased amortisation, non-cash employee share plans and AASB16 effects.
The Company announced a dividend of 2.5 cents per share fully franked.
Business Outlook
"This is an exciting time for MNF Group as we continue to see very strong demand for our core products - phone numbers with number portability. We are seeing significant organic growth from our existing domestic and global customers as they tackle the opportunities presented to them by the impending completion of the NBN roll-out and ISDN shut-down." Said Mr Rene Sugo, CEO. "Our total numbers on network increased to 4.1m in the period, representing an annualised growth rate of 16%, with a considerable order volume going into H2." Added Sugo.
Singapore Network Build Update
The Company is building a next-generation voice network in Singapore - the first fully interconnected carrier network built in the country since the year 2000. Physical construction of the network is now complete and is undergoing interoperability testing with the incumbent carriers. The Company continues to receive very strong interest from its global customer base for fixed line phone numbers with number portability in Singapore. The Company is currently targeting soft launch with initial customers by H1 FY21.
Telco-In-A-Box Acquisition Update
The Company acquired the business assets of Telco-In-A-Box (TIAB) in December 2018 for $33.8m (7.5 x EBITDA) for the purpose of consolidating its large whole customer base into the MNF Domestic Wholesale business. The corporate restructure of TIAB was completed in H1 FY20 at a once-off cost of $1.3m which has not been included in EBITDA. Consolidation of network and software platforms is ongoing. During the half the Company also divested two small legacy businesses from TIAB at a margin impact of circa $500K to the Direct Segment. Additionally, TIAB legacy product obsolescence and end-user churn has contributed a margin impact of $2.1m in the half to the Domestic Wholesale segment. Despite these margin impacts and restructure costs, the TIAB business is performing well and is still delivering expectations at the EBITDA level. The TIAB business has delivered considerable benefits to the group, including addition of new staff to the team, a broad range of quality customers, as well as significant scale and new products to our portfolio. Overall the board is pleased with the outcome of the acquisition.
With a discerning and conservative approach, the Board of MNF Group will continue to actively search for further acquisition opportunities; whilst we remain totally committed to driving growth and performance within the business.
To view the results summary, please visit:
https://abnnewswire.net/lnk/P335U75O
About Symbio Holdings Limited
Symbio Holdings Limited (ASX:SYM) is a software company changing the way the world communicates.
Symbio's technology replaces old-fashioned telecom networks with software, making it faster and easier to deliver modern cloud-based communication services, unlocking endless new applications for calling, messaging and phone numbers.
Symbio is the backbone for the global cloud communication industry. Over 500 service providers - from telecom start-ups to the world's biggest software companies - rely on Symbio for the connectivity, quality and expertise they need to solve complex communication challenges.
Headquartered in Sydney, Symbio powers billions of calls and messages each year, owns networks in three countries and employs over 450 staff worldwide.
For more information about Symbio visit www.symbio.global
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