MACQUARIE Telecom has flagged possible acquisitions within the next year after rocketing back into the black on the back of its data and hosting business.
The telecommunications provider specialising in business and government clients reported net profit for the year to June 30 of $7.45 million, compared with a $1.165 million loss in the previous year. Shares jumped 33¢ to $3.70 as a result.
Earnings before interest, tax, depreciation and amortisation were up 81.9 per cent on the previous year to $25 million, exceeding its guidance issued in April of between $22 million and $24 million.
Chief executive David Tudehope said yesterday the results were a vindication of the company's shift towards its higher margin data and hosting businesses, which provide internet services and IT systems.
Data and hosting revenue grew by 17.6 per cent to $95.5 million, making up 38 per cent of total revenue for the year.
''There's a higher fixed-cost element to those two businesses, particularly hosting,'' Mr Tudehope said.
''That translates to the more customers you have running across the same fixed cost base, the more money you make.
''We're getting our utilisation up as we add more customers to our data business, to our network business, and, as a result, that higher margin is flowing through to the bottom line.''
The company ended the year with $35.3 million cash, plus nearly $10 million from the sale of its Singapore business, leaving it in a healthy position to add to the 50 staff it has hired in the past nine months, or to acquire businesses.
''We're generating cash from the running of the business, we have no material debt, and that would be a balance sheet capable of supporting growth in the hosting business, both organically and potentially inorganically,'' Mr Tudehope said.
In line with other industry players, Macquarie's voice revenue was down, while its mobile revenue was stable.
