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Wholesale and retail telecommunications services provider Vonex has flagged that more mergers and acquisitions are on the cards as its post-tax profit for FY22 jumped up 108 per cent year-on-year to $331,000 in the black.
In the telco’s report for the financial year ending 30 June, it flagged it is pursuing a “disciplined M&A [merger and acquisition] growth strategy” for FY23 as it plans to target IT and telco businesses that offer the potential to expand its customer base, geographic presence and product suite.
This builds on the deals Vonex made during the financial year, which saw it acquire the direct business of MNF in June for $31 million and Voiteck in December for $2.6 million.
As a result of its M&A strategy during FY22, annualised recurring customer revenue (ARR) grew 97 per cent, to $36.2 million.
The decision to pursue more M&A activity comes as it turned around the $4 million post-tax loss experienced in FY21.
According to chairman Nicholas Ong, the rebound was due to increased scale and a tight focus on cost controls, resulting in its maiden full-year profit since listing on the Australian Securities Exchange (ASX).
Revenue also jumped up 79 per cent, to $34.3 million and underlying earnings before interest, tax, depreciation and amortisation (EBITDA) shot up 1,120 per cent to $6.6 million.
The latter figure excludes non cash share based payment expenses and impairment expenses, as well as acquisition, integration, migration and capital raising costs.
It does however include the results of MNF and Voiteck as if included for the whole of FY22 based on vendor-provided unaudited management accounts.
Vonex’s wholesale division also grew, with FY22 National Broadband Network (NBN) and IP voice sales rising 22 per cent and 37 per cent, respectively.
“While we are proud to have delivered these financial milestones for shareholders, we remain firmly focused on Vonex’s next growth horizons as the company pursues significant opportunities to gain scale in the Australian telecommunications industry,” Ong said to shareholders in a statement to the ASX.
