Half Yearly Report and Accounts
Sydney, Feb 25, 2020 AEST (ABN Newswire) - MNF Group Ltd (
ASX:MNF) (M2S:FRA) earnings before interest, tax, depreciation and amortisation (EBITDA) was up 52% to $16.9m (with FY19 restated for AASB16). Net profit after tax (NPAT) was up 20% to $3.7m. The Group ended the period with cash of $38.6m, and undrawn debt facilities of $30.0m available to fund further growth of the business.
The Group is in the process of integrating the recent acquisition of Telco-In-A-Box (TIAB). The Company acquired the business assets of TIAB in December 2018 for $33.8m (7.5 x EBITDA) for the purpose of consolidating its large whole customer base into the Domestic Wholesale segment. 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.
Despite the movements due to the integration, the underlying key performance indicators of the business remain strong. Our primary indicator for recurring revenue growth is the numbers on network, which increased 16% on prior comparative period (PCP) to 4,102,284 as of December 2019. Additionally, the business has considerable order volumes for number portability leading into the second half.
The Group remains positive for the medium term as it continues to see very strong demand for its core products - phone numbers with number portability. It is seeing significant organic recurring margin growth from its existing domestic (22% on PCP) and global customers (13% on PCP) as they tackle the opportunities presented to them by the impending completion of the NBN roll-out and ISDN shut-down.
To view the full Half Year Report, please visit:
https://abnnewswire.net/lnk/L36LTT15
To view the Half Year Guidance Presentation, please visit:
https://abnnewswire.net/lnk/RZCYM6UF
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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